High prices loom as price hike on fuels, excise tax starts today

THE business sector in Negros Occidental fears for the increase in the prices of prime commodities including labor with the imposition of big-time price hike on fuel prices coupled with the implementation of the second tranche of the excise tax on fuels.

Frank Carbon, executive Director of the Metro Bacolod Chamber of Commerce and Industry, said the total increase in the price of diesel alone is pegged at more than P4 per liter starting today.

“We fear on the sudden spiraling of the prices especially the basic commodities like what happened last year when the Tax Reform for Acceleration and Inclusion (Train Law) was implemented,” Carbon said.

He said: “We have been experiencing high prices of food and basic commodities and everything...we cannot imagine the increase in prices starting today.”

Because of the situation, the business sector is expecting a slow down in their business sales except on food, he added.

“Majority are dependent on salaries so we expect people to just give priority on food for the family so many businesses may slow down even the tourism industry because people may no longer have extra money for travel and other aspects of living,” Carbon pointed out.

He said that 70 percent of the consumers are salaried individuals who rely on their salaries for the daily living.

As some of the gasoline companies said they will implement the fuel price hike today, other gas companies have already implemented the increase since yesterday at the average of P2 per liter. This is the second increase in fuel prices for this year, Carbon said.

With the implementation of the additional excise tax, the price of diesel is expected at P4.50 per liter and P3.50 per liter for gasoline which will definitely affect the take-home pay of the drivers, he added.*