The Federation of Free Workers (FFW) is urging the government to suspend excise taxes and value-added tax (VAT) on petroleum products while pushing for an immediate wage increase, saying Filipino workers are being hit by both rising fuel-driven prices and stagnant wages.

In an interview with Gold Star Daily, FFW President Sonny Matula said fuel prices do not stop at the gasoline station but ripple through almost every aspect of daily life.

“Fuel prices do not stay at the gasoline station; they move into transport fares, food prices, electricity, logistics, and almost every basic commodity," said Matula adding, "So when fuel prices rise, the worker’s wage is immediately eroded,” 

He said this is why FFW believes a legislated wage hike must go hand in hand with fuel tax relief.

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“FFW holds that wage relief is urgently needed alongside fuel tax relief because the two are not separate in the daily life of workers,” he said.

Matula noted that both the House of Representatives and the Senate during the 19th Congress had already adopted wage hike proposals as a “recovery wage” even before the current Middle East crisis pushed oil prices higher.

“The proposed legislated wage hike in Congress ranges from ₱100 to ₱200 per day, with the Senate of the Philippines backing a ₱100 increase and the House of Representatives of the Philippines pushing for up to ₱200 as a recovery wage. If it was justified then, all the more it is urgent now,” he said.

FFW said the recent suspension of excise taxes on kerosene and LPG is welcome, but not enough to protect workers already struggling with higher fares and food prices.

According to the labor group, rising fuel prices affect jeepney and bus fares, motorcycle and tricycle transport, delivery costs, farming operations, factory production, and market prices—leaving workers with less purchasing power.

FFW Women’s Network President Ma. Victoria Bellosillo said the government should stop treating the oil crisis as a source of added revenue.

“Kung may kapangyarihan na, gamitin na. Huwag nang gawing pang-display ang batas habang sumisirit ang presyo at sumisikip ang sinturon ng manggagawa,” Bellosillo said.

She stressed that taxes are necessary for public services, but it becomes unjust when government collections increase simply because oil prices are rising.

“Kapag doble o triple ang koleksyon sa VAT dahil mataas ang presyo ng langis, hindi na iyan simpleng koleksyon—parang resibo ng pighati ng taumbayan,” Bellosillo said.

The group explained that VAT on fuel becomes especially burdensome because it increases together with pump prices.

Arta Maines, president of the United Cirtek Employees Association (UCEA-FFW), said workers end up carrying the burden while both government and oil companies continue to collect.

“Legal man sa calculator, masakit sa konsensya. Hindi dapat gawing piggy bank ng gobyerno ang paghihirap ng manggagawa,” Maines said.

Matula added that fuel tax relief alone will not solve the problem if oil companies are allowed to take advantage of the situation.

“Kapag tinanggal ang buwis pero nag-take advantage naman ang oil companies, parang nagbigay ka ng discount sa kanan pero binawi sa kaliwa,” he said.

Because of this, FFW is also calling for strict price monitoring, stronger anti-profiteering measures, and even price caps if necessary.

“Kaya kailangan din ng strict price monitoring, anti-profiteering measures, at price cap kung kinakailangan,” Matula said.

The labor group urged President Ferdinand Marcos Jr. to use the authority granted under Republic Act No. 12316 to widen excise tax relief and work with Congress for the immediate suspension or reduction of VAT on petroleum products.

Together with the Nagkaisa Labor Coalition, Trade Union Congress of the Philippines (TUCP), Kilusang Mayo Uno (KMU), and Bukluran ng Manggagawang Pilipino (BMP), FFW continues to push for a legislated wage hike nationwide.

On Monday, FFW local unions in CALABARZON are also set to file a wage petition before the Regional Tripartite Wages and Productivity Board IV-A, seeking to raise the minimum wage in the region to a uniform ₱1,200 per day.

Matula said the solution is straightforward.

“Suspend fuel taxes para hindi kumita ang gobyerno sa krisis. Cap abusive fuel prices para hindi mag-party ang oil companies. Raise wages para hindi laging manggagawa ang shock absorber ng ekonomiya,” he said.

FFW said the present crisis demands a government that protects workers—not one that profits from their hardship.