SENATORIAL candidate Herbert “Bistek” Bautista yesterday said there are two ways that the government can cushion the impact of the ongoing war in Ukraine on the prices of oil and other petroleum products in the country — through subsidies and competition.
Bautista noted how the war in Ukraine will adversely impact on Europe’s fuel supply, which comes from Russia.
“So, the alternative would be for them to get their supply in the Middle East. Eventually, if they get their oil from the Middle East, that’s when we will feel the effect,” said Bautista, former mayor of Quezon city for three terms.
The result, he said, will be price increases in the country, which would heavily affect two sectors — commuters and public transport drivers.
“Our commuters will pay more. Our drivers and operators would protest and demand higher fare,” he said.
Bautista suggested that the government buy back Petron from the San Miguel Corp. group to drive competition in the oil industry and subsequently lower down prices, and to provide a vehicle for subsidies to drivers and operators.
He said with Petron in government hands, prices could be kept in control through competitive costs while Petron could also become a vehicle through which the government could subsidize oil prices.
“Of course, we believe in competition and rivalry in the private sector but the government should be a competitor, too, so instead of aid, the benefit can go directly to drivers, among others,” he said.