Saturday, March 28, 2026

Port users back energy emergency declaration, call for oil tax relief to stabilize logistics costs

The United Portusers Confederation of the Philippines, Inc. (UPC) has come out in strong support of the government’s recent declaration of a state of energy emergency and the enactment of legislation granting the Chief Executive authority to suspend or reduce excise taxes on petroleum products.

The UPC, which represents a broad spectrum of exporters, importers, brokers, and truckers, describes these twin measures as “timely lifelines” essential for maintaining the country’s trade competitiveness amidst global market volatility.

Fuel remains the primary cost driver for the logistics sector. According to UPC President Ma. Flordeliza C. Leong, the impact of fluctuating oil prices is felt immediately across the entire value chain.

“When oil prices spike, the impact cascades—from trucking and shipping lines to warehousing and last-mile delivery,” Leong stated. “The flexibility to adjust oil taxes can temper these cost surges and prevent further disruption across the supply chain.”

The UPC highlights several critical advantages of the government’s decisive action:

Cost Stabilization: Immediate lowering of transport and handling expenses.

Global Competitiveness: Keeping Philippine goods priced competitively in international markets.

Inflation Control: Preventing the “shelf-price” hikes that occur when transport costs rise.

Economic Resilience: Cushioning the economy against extreme price volatility.

While welcoming the emergency measures, the UPC is urging the government to ensure that the relief actually reaches the end-users. The confederation is calling for clear, transparent monitoring to verify that tax savings are passed through to shippers and consumers.

To maximize the benefits of these policies, the UPC recommends a multi-pronged approach:

Modernization: Exploring fuel-efficient and alternative-energy fleets for port operations.

Efficiency: Improving traffic management and turnaround times to reduce unnecessary fuel burn.

Regulation: Rationalizing port and shipping surcharges.

Data Integration: Strengthening data sharing across agencies to guide future policy.

“Beyond immediate relief, this is an opportunity to accelerate structural reforms that will make our logistics system more energy-resilient,” Leong added. “A coordinated, whole-of-government approach—working closely with industry—will be key to sustaining momentum.”

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