MANILA, Philippines — Budget Secretary Benjamin Diokno said Filipinos should not complain too much amid rising prices of fuel and widely used goods, saying the country was able to withstand higher pump prices in the past.
Earlier this month, Brent crude, used to price international oil, rose 77 cents to $80.05 per barrel in London, its highest level since November 2014 amid geopolitical and global economic concerns.
The central bank now expects inflation to remain elevated in the coming months and peak “towards the end of 2018,” citing a possible jump in world crude prices and second-round effects of the tax reform law.
In a press conference on Wednesday, Diokno pointed out that the country has had worse in the past when global oil prices hit $135 per barrel during the Arroyo administration.
“So I think we should be less of a crybaby. I think we should not take on a rather controversial statement,” Diokno said.
The Tax Reform for Acceleration and Inclusion Act—which lowers personal income taxes while raising excise levies on fuel and “sin” products, among others—has been partly blamed for the soaring prices of key consumer items in recent months.
Some legislators say Congress might "suspend" the TRAIN Act if inflation blows past targets, despite the law’s tax-freeze provision that will kick in when global oil prices hit a certain threshold.
“The thing to realize is that we’re not going to keep this money to the treasury. We could spend it for mass transit system and who will benefit from this? It’s also the poor,” the budget chief said.
Last week, crude prices closed lower after Saudi Arabia and Russia were reported to be considering an increase in production ahead of a key Organization of Petroleum Exporting Countries meeting in Vienna next month.
To stir up competition and pacify sharp swings in domestic oil prices, the Energy department has ordered state-owned Philippine National Oil Company-Exploration Corporation to sell petroleum products sourced from Russia and non-OPEC suppliers to independent dealers.