House resolution calls for measures seeking to mitigate fuel price increases from Iran war

A HOUSE RESOLUTION filed this week called for an inquiry into measures that could possibly blunt the impact of the Iran crisis, including hedging and other methods to minimize price shocks.

Party-list Rep. Nathaniel M. Oducado said in a statement on Thursday that the purpose of House Resolution No. 825 is to ensure prompt action “to protect  consumers from sudden oil price shocks that hurt families and small businesses.”

The Philippines is a net importer of oil and is vulnerable to sharp fluctuations in global oil prices, often triggered by crises in the Middle East.

US and Israeli forces launched airstrikes on Iranian targets on Saturday, in what US President Donald J. Trump described as an effort to eliminate threats against the US, including the development of nuclear weapons.

Mr. Trump has said that the US military will continue striking Iranian targets for “as long as necessary” to achieve Washington’s objectives, which include regime change.

The strikes, which decapitated Tehran’s leadership, have risked plunging the Middle East into a wider conflict after Israel started attacking targets in Lebanon, and as Tehran began hitting oil facilities in Gulf states and shut access to the Strait of Hormuz, through which 20% of the world’s oil and gas transits.

“We cannot ignore these global developments because they directly affect the cost of living in our country,” Mr. Oducado said. “Congress must study policy options that can shield consumers without putting our economy at risk.”

In a statement, former Bayan Muna Rep. Carlos Isagani T. Zarate urged Congress to take notice of a minority bloc proposal for a package of bills aimed at lowering oil prices, warning that failure to enact structural reforms in the  oil market could trigger an “inflation explosion.”

“If the Marcos administration drags its feet or contents itself with band-aid solutions like emergency powers, we are in for numerous price shocks in the coming months,” he said.

The package includes measures to regulate the downstream oil industry and unbundle oil prices to help rein in hikes. — Kenneth Christiane L. Basilio