Britain’s Queen Elizabeth reacts as she attends a reception in the Ballroom of Sandringham House with representatives from local community groups to celebrate the start of the Platinum Jubilee, in Sandringham, Britain, Feb. 5, 2022. — JOE GIDDENS/ POOL VIA REUTERS
WINDSOR, England — News that Britain’s Queen Elizabeth had tested positive for coronavirus disease 2019 (COVID-19) drew shock, concern, and messages of goodwill from across the country on Sunday, with politicians and the public willing the 95-year-old to recover.
On a wet and blustery day, a few sightseers gathered at the gates of Windsor Castle where the queen is receiving medical treatment for mild symptoms. Others went online to express support and message boards in the London Underground urged the monarch to “take it easy.”
Many said they were troubled by the news after the world’s longest-reigning monarch pulled out of a number of high-profile events and spent a night in hospital last October, igniting fears about her health.
Julie and Rupert Wills, visiting Windsor to the west of London, said they loved the queen “to bits,” with Rupert respecting her ability to just “quietly get on with” things. Sanil Solanki, 43, described her as the nation’s mother.
For 19-year-old Gerard Smith, the news had come as a shock. “Everyone loves her,” he said. “She can’t do wrong to anyone. She’s been there my whole lifetime and the lifetime of almost everyone. It’s sad to hear. Hopefully, she makes it through.”
British Prime Minister Boris Johnson led the official response, saying he was sure he spoke for the nation when he wished the queen a swift recovery and a rapid return to vibrant good health.
Opposition leader Keir Starmer said: “Get well soon Ma’am.” Many other politicians simply tweeted “God Save The Queen”.
The US Embassy in London sent best wishes. The chief minister of Gibraltar, Fabian Picardo, described the queen as “a rock” in reference to the British territory’s landscape.
The widespread support for the queen follows the anniversary earlier this month when she quietly marked 70 years on the throne, the first British sovereign to do so.
The Palace said the queen was showing mild symptoms and was expected to continue “light duties” over the coming week.
In keeping with that, the queen released a statement shortly afterward praising the British women’s curling team for their Olympic gold medal in Beijing.
“I know that your local communities and people throughout the United Kingdom will join me in sending our good wishes to you, your coaches and the friends and family who have supported you in your great success,” she said. — Sarah Mills/Reuters
The Felicity Ace ship in 2007. -- Image via Wikimedia Commons.
LISBON — Firefighters are struggling to put out a fire that broke out on Wednesday on a vessel carrying thousands of luxury cars, which is adrift off the coast of Portugal’s Azores islands, a port official said, adding it was unclear when they would succeed.
The Felicity Ace ship, carrying around 4,000 vehicles including Porsches, Audis, and Bentleys, some electric with lithium-ion batteries, caught fire in the middle of the Atlantic Ocean on Wednesday. The 22 crew members on board were evacuated on the same day.
“The intervention [to put out the blaze] has to be done very slowly,” João Mendes Cabeças, captain of the nearest port in the Azorean island of Faial, told Reuters late on Saturday. “It will take a while.”
Lithium-ion batteries in the electric vehicles on board are “keeping the fire alive,” Mr. Cabeças said, adding that specialist equipment to extinguish it was on the way.
It was not clear whether the batteries sparked the fire.
Volkswagen, which owns the brands, did not confirm the total number of cars on board and said on Friday it was awaiting further information. Ship manager Mitsui O.S.K. Lines Ltd. did not immediately respond to a request for comment.
Mr. Cabeças previously said that “everything was on fire about five meters above the water line” and the blaze was still far from the ship’s fuel tanks. It is getting closer, he said.
“The fire spread further down,” he said, explaining that teams could only tackle the fire from outside by cooling down the ship’s structure as it was too dangerous to go on board.
They also cannot use water because adding weight to the ship could make it more unstable, and traditional water extinguishers do not stop lithium-ion batteries from burning, Cabeças said.
The Panama-flagged ship will be towed to a country in Europe or to the Bahamas but it is unclear when that will happen. — Reuters
Finding the right place to raise a family in the city while juggling your career can be one of the most challenging yet smartest move to make today. This is why it is most ideal to start investing in a future where all of you can be happy, safe, secured, and well-taken care of.
Coming back to the life we once deemed normal, we can anticipate the influx of workers returning to their offices, children to their respective schools, as well as the one thing we didn’t miss the most – traffic. It’s best that we set our family up for success and bring them into an ideal location where all needs to thrive.
RLC Residences has ready-for-occupancy (RFO) units in their developments around the Metro to meet varying lifestyle demands. Whether you’re a part of a growing family, or just about to start a life in the city, there is already a home waiting for you to move in anytime.
The Trion Towers: Exceptional living at BGC
When one says Bonifacio Global City, what immediately comes to mind are the tall buildings and commercial spaces that surround this lively business district. Right at the heart of it lies The Trion Towers, a residential development boasting numerous conveniences and 32 amazing amenities.
This property meets the desires of city-centered professionals working in BGC who want to advance their careers. If you’re that, you can easily make a selection in the one-bedroom, two-bedroom, and even three-bedroom RFO unit types and its well-thought offerings for fitness, entertainment, and wellness. Now at 10% off, the timing’s right to own a piece of this magnificent project.
Situated within a stone’s throw away from offices, hospitals, schools, and various leisure establishments, homebuyers are surely up for easy everyday living at one of the most thriving locations in the Metro.
The Radiance Manila Bay: Relaxation amid the Metropolis beat
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The hustle and bustle within the country’s capital is as challenging as it is rewarding. This is why coming home should be a relaxing retreat after a hard day’s work and this is what will welcome each passing day at The Radiance Manila Bay.
Its two towers face the most famous attraction in the Metro – the majestic view of Manila Bay as the sun rises and sets. Here, the family may bask in the beauty of the view at their balconies.
This ready-for-occupancy condominium is also the perfect residence for those handling business in nearby Manila districts such as Binondo, as it provides a convenient distance to the city’s Chinatown. Instead of spending more time traveling to and from work, it can now be converted to quality time to spend with loved ones.
The Radiance Manila Bay offers a wide array of amenities promoting wellness so if we crave rest every so often, there is no need to leave the comforts of our own home. It’s also near entertainment and cultural landmarks in Manila as well as international and government institutions so everything can be a breeze.
RLC Residences is giving up to 30% discount on all RFO unit types for this specific development. For the investors at heart, this property also allows more long-term leasing opportunities for its units.
The Magnolia Residences: A desirable scene to be
An award-winning, four-tower development within a destination estate, The Magnolia Residences stands proud at one of the primest neighborhoods in Quezon City – New Manila.
Tucked inside a city that’s full of life and a few steps from the popular Robinsons Magnolia complex, there is no doubt that the whole family will be inspired to plant their roots and live the best life with the development.
Every need is outside your doorstep? You name it – chic cafes, well-established shops, major thoroughfares, world-class hospitals, and urban hubs such as Greenhills, Cubao, Ortigas, and Makati. Everything is within reach!
All units at The Magnolia Residences are currently being offered its best price with 10% off, therefore ending your quest for the dream home at the center of the city.
Buying a ready-for-occupancy home makes an excellent choice especially for families seeking easy relocation and definitely a jumpstart to a bright future.
The best life is the only life you deserve and RLC Residences is here to give us nothing short of that. Connect with a Property Specialist today or visit its official website rlcresidences.com or follow its social media pages on Facebook at facebook.com/RLCResidencesPH and Instagram at @rlc_residences.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
LONDON — The United States and Britain would cut off Russian companies’ access to US dollars and British pounds if the Kremlin orders an invasion of Ukraine, British Prime Minister Boris Johnson said on Sunday.
The United States and Britain have repeatedly cautioned that Russia is about to invade Ukraine, a step Washington and London say would trigger the biggest conflict since the end of World War Two. Russia denies it plans to annex Ukraine.
Mr. Johnson said that Western sanctions on Russia in the event of an invasion would go much further than he has previously suggested in public.
“We are even, with our American friends, going to stop them trading in pounds and dollars,” Mr. Johnson told the BBC. “That will hit very, very hard.”
Mr. Johnson, though, questioned if the threat of sanctions would be enough to deter Russian President Vladimir Putin because the Kremlin chief might not be thinking logically.
“We have to accept at the moment that Vladimir Putin is possibly thinking illogically about this and doesn’t see the disaster ahead,” Mr. Johnson said.
Britain, home to the center of global foreign exchange trading, has previously threatened to block Russian companies from raising capital in London and to expose what Mr. Johnson calls the “Russian doll” of property and company ownership.
Britain has not spelled out who would fall under the sanctions, but has pledged that there would be nowhere for Russian oligarchs to hide. Mr. Johnson has said targets could include Russian banks.
Russia denies it plans to annex another part of Ukraine, after it took Crimea in 2014. Mr. Putin says the West is sowing hysteria in a crude attempt to lure Russia into war after ignoring the Kremlin’s concerns about NATO enlargement after the Cold War.
Russia, according to Western estimates, has more than 150,000 troops on the Ukrainian border.
Such assessments by US and British spies cannot be trusted as they made so many grave mistakes in the run up to the US-led invasion of Iraq, Russia’s first deputy permanent representative to the United Nations, Dmitry Polyanskiy, said.
DOLLAR TRADE
Given Russia’s position as one of the world’s top exporters of oil, gas, and metals — which are largely priced and settled in US dollars — blocking Russian companies from access to dollar markets could have a stinging impact.
Mr. Putin has repeatedly called for reducing reliance on the US dollar trade and recent major energy contracts with China have been priced in euros.
Russia’s largest oil company Rosneft fully switched the currency of its contracts to euros from US dollars to shield its transactions from US sanctions, CEO Igor Sechin said in 2019.
London is by far the biggest center for global foreign exchange, accounting for more than 43% of the total turnover, according to the Bank for International Settlement. The dollar is the most traded currency, followed by the euro, yen, and British pound.
Hundreds of billions of dollars have flowed into London and Britain’s overseas territories from Russia since the fall of the Soviet Union in 1991, and London has become the Western city of choice for the super-wealthy of Russia and other former Soviet republics.
Western intelligence services believe Mr. Putin may order an unconventional attack on Ukraine which might require the West to make a swift judgment call on the imposition of sanctions, a senior Western official said on Friday. — Guy Faulconbridge and Kate Holton/Reuters
Vote buying is prohibited under the Omnibus Election Code, with penalties of imprisonment for one to six years, disqualification to hold public office, and forfeiture of one’s right to vote if found guilty.
And yet, vote buying still happens.
In this B-Side episode, Froilan C. Calilung, a political science professor at the University of Santo Tomas, talks about the legalities and loopholes that have allowed vote buying to become part of the Philippine political system, with structures built by those with power and money. “We could simply say that poverty is one of the contentious issues why we have vote buying, and why it is still very much prevalent in our society nowadays,” he tells BusinessWorld reporter Alyssa Nicole O. Tan. “Many Filipinos actually see election time as a frivolous event — more like a carnival of sorts, if I may say.”
TAKEAWAYS
Utang na loob (debt of gratitude) has a dark side.
Many voters will come from the C, D, and E margins which include the lower middle class, working class, and the poor, making them susceptible to the pressure of accepting bribes in exchange for votes.
There are two schools of thought when it comes to vote buying, said Mr. Calilung: “One of which says that you vote according to your conscience which means… you don’t accept the money at all,” he explained, “and the other one is relevant to the idea of accepting the money but not voting for the candidates.”
He added that vote buying doesn’t even have to involve money; it can come in the form of canned goods, job placements, leisure opportunities, or whatever gains the candidate any sort of favor — this, in turn, leads to “utang na loob,” or a feeling of indebtedness.
Vote buying shouldn’t be ‘condoned, normalized, or romanticized’ no matter how widespread it is.
People have learned how to rationalize vote buying. “The premise and the belief that this money is ours, this is taxpayer’s money that these politicians get, and they’re just trying to give it back to us,” said Mr. Calilung.
Even better: when a preferred candidate buys a vote that was already theirs. “They are hitting two birds with one stone.”
However, Mr. Calilung said vote buying must not be condoned, normalized, or romanticized even if the Commission on Elections is unable to prevent it.
If you can’t reform politicians, reform the populace instead.
Appealing to the collective conscience to “do the right thing,” might work, said Mr. Calilung, who pointed to non-government organizations and the church as possible messengers.
Eliminating vote buying, he added, will “open the floodgates for more honest, competent, and highly qualified political aspirants to join the fray.”
“I think it all boils down to the kind of moral fiber that we have,” Mr. Calilung said, but this reasoning only works for the privileged. “Poverty is still going to play a big role in the elections, and it will factor in the decision to accept money from the candidates.”
ONLINE PAYMENTS company PayMongo said it recently secured $31 million, or around P1.6 billion, in Series B funding.
“We will be deploying capital to aggressively build up our design, product, and engineering teams while also developing strategic partnerships with key players and institutions within the financial technology ecosystem,” the company told BusinessWorld in an e-mailed reply to questions last week.
“Some new products and functionalities such as disbursements, new payment methods, and better developer and fraud prevention tools are already being beta tested with select users. We’re excited to introduce these to the market very soon,” it added.
The round raises the company’s total capital to around $46 million, following a $12-million Series A round in 2020 and a $2.7-million seed round in 2019.
“Participating in the round are Justin Mateen’s JAM Fund, Philippine VC firms ICCP-SBI Venture Partners and Lisa Gokongwei’s Kaya Founders, together with existing investors Global Founders Capital and SOMA Capital. Also joining the round are founders of top European fintech unicorns and startups Qonto, Viva Wallet, Billie and Scalable,” the company said.
PayMongo was launched in 2019 as a business-to-business financial technology company that enables online businesses to accept a variety of payment methods, including credit cards, e-wallets, and over-the-counter payments.
The company said that since closing its Series A in September 2020, its merchant base has grown from 3,000 to 9,000.
“We had 500 merchants at the end of 2019 and we now have over 9,000 merchants on the platform — over 18x growth in the span of over two years.”
“Our monthly transaction volumes tripled from the start to the end of 2021,” it added.
The company is optimistic about growing its merchant base, as there are still many enterprises that “lack the financial tools to set up shop and succeed online.”
“We believe we’ve only scratched the surface in terms of fueling this economy, and we look forward to increasing this trend of exponential growth in our merchants as we scale the company in the coming year.”
Hans T. Sy, chairman of SM Prime Holdings, Inc., inducts the 2022 board of officers and directors of the Philippine Association of National Advertisers (PANA). Olympic gold medalist Hidylyn Diaz also graced the virtual event as a keynote speaker.
The Philippine Association of National Advertisers 2022 directors and officers were officially inducted by Hans Sy of the SM Group in a virtual ceremony with the association members and industry partners in attendance last Jan. 27.
Mr. Sy also served as the keynote speaker sharing invaluable and inspiring messages of hope and optimism. Hidylin Diaz, Philippines First Olympic Gold medalist, also graced the occasion rallying the brand builders to be resolute to defy all odds.
As Hans Sy puts it, “It is in these challenging times that opportunities arise, when one stays positive. In good times, we work hard; in bad times, we work harder. We continue to move forward knowing that many businesses, tenants, partners, customers and employees depend on us. We protect these relationships even with disruption. Our focus is the spirit of service. Through ups and downs, we continue to provide the community’s essential needs.”
He added, “As a staunch promoter of business continuity practices that are a result of planning ahead to remain resilient and sustainable during disasters, we face 2022 with innate positiveness and we encourage everyone to do the same. Our collective effort will definitely result in a better normal. Take to heart all the learnings from the difficulties, realize that all of us have roles to play and all of us have strengths to share.”
He continued to invite everyone “to learn from each other and find opportunities to help one another.” His parting words were to be positive, be agile, do things with speed and affirm commitment to service and sustainability. To him, these are the ways to a shared better normal.
Elected as the new PANA president, Maye Yao Co Say shared her vision for the year. She said that being an active PANA member has afforded her access to valuable insights, genuine advice and a lot of growth opportunities which were all great for an SME like Richwell Phils. Group of Companies.
Now that she has been given the opportunity to serve, Ms. Yao Co Say vows to evolve PANA’s role of championing responsible brand building into three I’s namely Impact, Integrity and Innovation. By this, she means members’ common interests in marketing communications and brand building strategies will be advanced in the learning sessions with concrete performance based strategies. She envisions more collaboration with government and other related industries to address pertinent and challenging issues like disinformation and fake news.
Further, she advocates going beyond campaigns and creatives towards profits, purpose and human building activities. Viewing the new year as a time to review, reset and revitalize, she emphasized the importance and relevance of a strong industry organization like PANA.
The officers of the PANA board include the following: Adi Timbol-Hernandez (McDonald’s Phils.) as vice-president, Blen Fernando (Magna-AnimaTeachers’ College) as corporate secretary, Mick Atienza (Smart Communications, Inc.) as treasurer, Joy Jolingan (Nestle Phils.) as PRO, Agnes Hernia (Rebisco) as auditor, as well as the other distinguished directors: Andrew Ahorro (Kolin Phils. Int’l, Inc.), Julie Balarbar (De La Salle University), Ron Molina (Ginebra San Miguel), Jonjon San Agustin ( SM supermalls), and Marc San Juan (Julie’s Bakeshop).
Blen Fernando continues to be the chairperson of the PANA Foundation, the heart of PANA. This year, she announced that PANAF will endeavor to embark on fewer yet bigger and bolder outreach projects. PANAnaw, the student competition for the best brand building campaign among colleges and universities which has been in place for the last two decades, remains top of the list.
Through this program, she hopes to continue molding young minds in terms of skills and values most appropriate to the industry and the nation. Further, she called on all her trustees to be transformational leaders with a deepened sense of commitment by giving their talent, time and sometimes even treasure, to create a purposeful journey. With Hidilyn Diaz as the role model to illustrate the epitome of leadership, excellence, determination and integrity, Ms. Fernando convincingly conveyed a message of hope and courage for a better normal. As Hidilyn succinctly put it, “Sa huli’t huli, tayo po ay magtutulungan, hindi lang para sa ating sarili kundi para sa Diyos at para sa bayan.”
The Foundation officers are as follows: Ron Molina (Ginebra San Miguel) as vice-chair, Mike Villa-real (Veterans Bank) as corporate secretary, and Alan Fontanilla (Served Manila) as treasurer, and the other noted trustees include: Andrew Ahorro (Kolin Phils. Int’l., Inc.), Carlos Bacani (Peerless Products Mfg. Inc.), Celina Matias (Phoenix Petroleum and Family Mart), Len Pozon (Pioneer Insurance), Nina Angela Tioseco-Reyes (Siemens Healthcare Inc.) Albet Buddahim (Katapult Digital Corp.), and Gigi Tibi (RadManila Comms Inc.).
Hans T. Sy, chairman of SM Prime Holdings, Inc., inducts the 2022 PANA Foundation Officers and Board of Trustees.
PANA is one of the pioneer and distinguished organizations in the country comprising close to 300 members from various multinational and local companies engaged in advertising and brand building. In the 64 years that it has been in existence, PANA continues to provide leadership, guidance and support in the promotion of effective, truthful and responsible marketing communications in the Philippines. To date, it has remained true to its mandate of championing self-regulation, protecting consumer interests and advancing the practice of brand building to global standards.
ARTHALAND has successfully completed the construction of 156 premium and sustainable office spaces at Savya Financial Center (North Tower) last January 2022.
Arthaland, the country’s foremost sustainable developer, starts the year strong with the on-time turnover of Savya Financial Center. Through precise planning and support from its top-notch contractors, the North Tower of this premium commercial development in ARCA South was completed before the end of 2021 as originally promised. As a result, locators and investors gear up in preparation for their scheduled unit handovers, with the first one happening last Feb. 16, 2022.
“We always strive for excellence and push ourselves to be the best as we are committed to delivering quality sustainable developments that will create a wealth of life for future generations. And part of that commitment to quality is being able to deliver our promises on time,” said Jaime C. González, Arthaland Vice-Chairman and President.
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A grand sense of arrival welcomes individuals entering Savya Financial Center.
All set for handover. Clients will be given a tour of their office units and the common areas within the building so they can fully appreciate this world-class next generation office development in Taguig.
The onset of the pandemic imposed many challenges for the industry — from restricted access to goods and services, workforce issues, and even coordination with team members and suppliers proved difficult. But Arthaland’s meticulous planning and preparation enabled it to adapt to the situation quickly, and the construction of Savya Financial Center was able to keep pace. In the construction site, Arthaland put a ‘sanitized bubble’ to ensure a safe and healthy working environment. In addition, every person entering the area is required to strictly observe Arthaland’s safety measures and health protocols beyond the Philippine government’s standard mandates. These initiatives have proved effective, resulting in zero infections for the more than 800 workers on site.
“I would like to commend the Arthaland team and our contractors, DATEM, Inc. and Design Coordinates Inc. (DCI), for such an achievement. It is quite a feat to finish the project on time despite the many challenges posed by the pandemic and all the while strictly adhering to Arthaland’s commitment to deliver high-quality, world-class and sustainable buildings,” said Christopher G. Narciso, Arthaland’s Executive Vice-President.
For more information about Savya Financial Center, call +63917 77 ARTHA (28742), e-mail ask@arthaland.com, or visit www.arthaland.com.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
THE BANGKO SENTRAL ng Pilipinas (BSP) may start normalizing policy rates towards the second half of this year as it expects the economy’s output gap to close, a central bank official said.
“Our estimate is that the output gap could close in the second half of this year, and then it will turn positive thereafter,” Deputy Governor Francisco G. Dakila, Jr. said at a Thursday briefing.
“There is enough headroom for continued accommodative monetary policy in the near term with possible normalization to begin towards the second half of 2022.”
Mr. Dakila said that while inflation is likely to stay within the target 2-4% range, rising demand as the economy improves could cause faster price increases.
The BSP last week kept its key rate unchanged for its 10th straight meeting, with the overnight repurchase rate still at 2%. But it hinted at an “eventual normalization” once economic recovery is sustained or inflation risks rise. The Monetary Board will have its next policy review on March 24.
The central bank raised its average inflation forecast for 2022 to 3.7% from 3.4% previously. It also increased the 2023 inflation estimate to 3.3% from 3.2%.
Shortages of pork and fish supply, along with the effect of higher oil prices on transport fares, remain risks to the inflation outlook, the BSP said.
Mr. Dakila said the timing of normalizing policy support will depend on the outlook for inflation and output, liquidity and credit conditions, financial sector risks, global developments, and public health.
Although the economy grew faster than expected in the fourth quarter last year, he noted that the stricter lockdown rules in response to an Omicron-driven surge in coronavirus disease 2019 (COVID-19) cases could negatively impact first-quarter expansion this year.
“Nonetheless, we expect domestic growth to pick up in the succeeding quarters amid looser mobility restrictions, faster vaccination rollouts, and booster shots, as well as improvement in the global economy,” he said.
BSP Governor Benjamin E. Diokno said the central bank will continue to balance between providing the stimulus that would back economic recovery and preventing inflation pressures on the financial system.
“Our exit strategy is not uncertain, because within the BSP, we have identified a broad series of measures that can be implemented should conditions call for eventual policy normalization,” he said at the same briefing.
“What is uncertain is the outlook for the economy which makes it difficult to pinpoint a definite timeline for the exit or to specify specific thresholds for key variables.”
Mr. Diokno said preparations for the start of the exit have started, which is based on what he called “encouraging” indications that financial markets have been stabilizing.
“For instance, the BSP’s new transfer of advances to the National Government was lower at P300 billion in January 2022,” he said. “That’s down from P540 billion in December 2021.”
The Philippine economy expanded by 7.7% in the fourth quarter of 2021, a reversal of the 8.3% contraction in the same quarter in 2020. This was also higher than the revised 6.9% gross domestic product growth in the third quarter of 2021. — J.P.Ibañez
Fuel prices are displayed at a gas station in Pasay City, Feb. 19. — PHILIPPINE STAR/ MICHAEL VARCAS
By Jenina P. Ibañez, Senior Reporter
EXCISE TAXES on fuel should be absorbed by oil companies to slow down price spikes shouldered by consumers without sacrificing government revenues, an analyst said.
“Oil companies should absorb the excise tax and not pass it on to consumers,” Center for Energy, Ecology, and Development Executive Director Gerry C. Arances said in a Viber message.
“That is the most equitable solution, allowing revenues to be used for social services while at the same time lowering the price of petroleum products.”
The Department of Energy (DoE) has renewed its call for the suspension of excise tax on fuel products in a bid to slow the rise in fuel prices.
But Mr. Arances said the call for suspension is a “false dilemma” because it secures company profits “at the expense of everyone else in the country.”
Local oil firms last week raised gasoline prices by P1.20 per liter, diesel by P1.05, and kerosene by P0.65. Since the start of the year, prices of gasoline, diesel, and kerosene products have risen by P7.95, P10.2, and P9.10, respectively.
The Bangko Sentral ng Pilipinas (BSP) has indicated that it is monitoring global crude oil prices to the extent that they affect inflation prospects.
Current oil prices are caused by short supply and higher demand due to a global economic rebound, BSP Governor Benjamin E. Diokno said.
Mr. Arances said that fossil fuel volatility prompts a need for energy security backed by renewable sources and the use of electric vehicles.
“If we were even in the initial stages of the transition, oil companies themselves would be hesitant to raise prices for fear of accelerating the transition to renewables, avoiding our current predicament altogether,” he said.
Previously, the Department of Finance said a suspension of excise tax on fuel is inequitable because it would translate to higher income households benefiting at a faster pace than others. The Finance department also warned of foregone government revenue.
The government could only suspend excise taxes through new legislation amending the oil deregulation law.
John Paul R. Rivera, an economist at the Asian Institute of Management, said via Viber that the suspension of excise taxes would be beneficial to consumers. But he also noted that it puts at stake the revenues of a government that has racked up spending on pandemic responses.
“It’s a tradeoff. Government must weigh their priorities on this. Of course, consumer-side, this would be beneficial,” he said.
At the same time, farmers and fisherfolk said they would need fuel subsidies to meet their agriculture production targets as higher fuel costs hamper their operations.
Acting Presidential Spokesperson Karlo Alexei B. Nograles last week said the government appropriated P500 million from its 2022 national budget to provide fuel discounts for the agriculture sector.
“Fuel subsidies can help, but it will crowd out funds for our economic recovery and pandemic-related expenditures,” University of Asia and the Pacific Senior Economist Cid L. Terosa said in an e-mail.
TRANSPARENCY SOUGHT Meanwhile, Bayan Muna party-list representatives renewed their push for the passage of House Bill (HB) No. 10386 or the Unbundling of Oil Prices Act, which seeks to make oil prices transparent.
“Unbundling of oil prices will be a mechanism to check the validity of the current condition of high and increasing prices of oil products such as diesel, liquefied petroleum gas, gasoline and others,” Bayan Muna Rep. Ferdinand R. Gaite said in a Viber message.
Bayan Muna Rep. Carlos Isagani T. Zarate said in a separate Viber message there is a need for oil companies to disclose the pricing information “so that we will know if they are overpricing or not.”
“For 20 years the consumers could have overpaid billions of pesos in overpriced fuel. Worse these also led to price increases of other products using fuel,” he said.
HB No. 10386 was filed on Oct. 14, 2021 and has been referred to the House Committee on Energy. — with Jaspearl Emerald G. Tan
A contractor fixes a line in Barangay Addition Hills in Mandaluyong City, June 1, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS
By Arjay L. Balinbin, Senior Reporter
OVERHEAD UTILITY LINES in Metro Manila may soon be moved underground, according to a proposal by the Department of Public Works and Highways – National Capital Region (DPWH-NCR) office.
DPWH-NCR Regional Director Nomer Abel P. Canlas told BusinessWorld that the office submitted to the DPWH Central Office a proposal for a feasibility study on making all electricity and communication lines underground in the capital region.
In an interview last Friday, Mr. Canlas said they are proposing to start the project along major roads such as Epifanio de los Santos Avenue (EDSA), Radial Road 10 (R-10), and Circumferential Road 3 (C-3).
“One of our visions for the NCR is to put all lines underground,” he said, citing safety, convenience, and aesthetics.
“Let’s look beyond 2022, and we may see more posts and cables, which are unsightly. It would be a lot nicer if we put them underground,” he added.
Apart from the aesthetic advantages, underground cables also help avoid accidents like electrocution.
“Utility companies will no longer worry about acquiring road right-of-way for their utility posts,” Mr. Canlas noted.
Various groups recently urged the government to consider underground cables as part of its disaster resiliency strategy to prevent massive blackouts during calamities like Typhoon Odette.
Bagong Henerasyon Rep. Bernadette R. Herrera-Dy filed House Bill 5845 which proposed to require companies that use wires, including those that supply power, internet services, telephone, cables to the public, to relocate their wires underground within 10 years of its implementation.
Filed in 2019, the bill, also known as the “Nationwide Underground Cable System Act,” is still pending with the House Committee on Information and Communications Technology.
Utility service providers have said they are willing to shift to an underground cable system, but this would require government subsidies and proper planning on the part of government officials.
LOCAL GOVERNMENT UNITS (LGUs) spent P118.9 billion for their pandemic response up to June last year, the Department of Finance (DoF) said.
LGUs spent the total from April 2020 to June 2021, of which P76.44 billion came from their own funds, while another P35.44 billion came from the national budget through the Bayanihan to Heal as One Act (Bayanihan I).
The Bureau of Local Government Finance (BLGF) in its report to the DoF said LGUs also used P4.93 billion from unexpended cash balances of public funds.
Under the Bayanihan to Recover as One Act (Bayanihan II), the unexpended cash balances of public funds held in trust by the local governments can be used for their coronavirus disease 2019 (COVID-19) programs.
The remaining P2.14 billion spent by the LGUs came from grants and donations, the DoF said in a press release on Saturday.
The BLGF has developed an online reporting system for local government treasurers to track receipts and spending for COVID-19 programs.
“This reporting system was used to establish and assess baseline local finance data to serve as inputs in managing the COVID-19 response of the government,” BLGF Executive Director Niño Raymond Alvina said.
Funds were used for operating expenses, food assistance and other relief goods, capital outlays, and financial assistance for students, drivers, and senior citizens.
Data gathered by the BLGF came from 1,715 LGU treasurers. — Jenina P. Ibañez
