Lacson backs ‘60-40’ gas exploration with China

MANILA, Philippines — To cushion the Philippines from global fuel supply shocks triggered by the Middle East conflict, Senate President Pro Tempore Panfilo Lacson is pushing for “extreme” measures – ranging from a temporary state takeover of energy operations to joint oil exploration with China.

In an interview with radio dzBB yesterday, Lacson backed a joint energy venture with Beijing in the West Philippine Sea (WPS), provided the agreement strictly adheres to the 1987 Constitution’s 60-40 foreign ownership limit.

He noted that the Philippines lacks the technical and financial capacity for independent exploration in the resource-rich waters.

“Yes. Four-square behind, I am supporting it. It would otherwise be a wasted opportunity. We will become rich there,” Lacson said.

“What is important on paper, in the memorandum of agreement or whatever that will be signed, it should be clearly stated that the sharing is 60-40. If China agrees, it’s a win for us, because it means they recognize our sovereignty in the West Philippine Sea or wherever area will be explored,” he added.

Domestically, the senator urged the executive branch to exercise its emergency powers against hoarding and profiteering.

He cited the Oil Industry Deregulation Act, Philippine Natural Gas Industry Development Act, and the National Grid Corp. of the Philippines franchise act – all of which allow the government to temporarily direct or take over energy operations when public interest dictates.

“These are extreme measures but the government must be on its toes to monitor, and if there really is abuse in this sector, the government must step in, at least these are looming to serve as a warning against abuse,” Lacson said.

He demanded an update on government actions against gas stations caught illegally hiking prices.

“We need feedback on what happened with those they said were apprehended. Because that is in flagrante, in plain sight. It was advertised that they raised their prices even without approval from DOE (Department of Energy) or ERC (Energy Regulatory Commission),” the senator stressed.

For former Bayan Muna party-list representative Neri Colmenares, a joint oil exploration agreement with China may end up like the “unconstitutional” 2005 Joint Marine Seismic Undertaking (JMSU).

“It is a warning against repeating lopsided and opaque arrangements. The JMSU showed how ‘joint’ projects can become one-sided: China gained access to strategic information and leverage, while Filipinos were left with questions, secrecy, and no clear benefit,” he said in a statement.

“Joint exploration is being repackaged as a solution to high energy costs, but the reality is that China uses these deals to normalize its illegal presence and to extract concessions it cannot win under international law,” Colmenares maintained.

Delays in tax relief

Regarding the suspension of fuel excise taxes under Republic Act 12316, which takes effect April 12, Lacson lamented that the law’s mandated one-month monitoring period could severely delay public relief.

“Knowing the bureaucracy, it might take until June before the relief is felt by the public,” he noted.

However, the senator rejected calls to completely suspend the value-added tax on petroleum.

He warned that dropping VAT could cost the government over P320 billion in revenues, on top of the P200 billion already forgone from the excise tax suspension.

Instead of a VAT suspension, he urged the strategic use of P230 billion in unobligated funds from the 2025 and 2026 budgets to provide targeted, data-driven assistance to the transport sector and middle-to-low-income brackets.

Lower income tax

Meanwhile, Sen. Imee Marcos is urging the immediate passage of a measure to lower income taxes.

Senate Bill 2005 seeks to double the annual income tax exemption from the current P250,000 to P500,000, while also raising the tax-free cap for 13th-month pay and other employee bonuses from P90,000 to P200,000. — Delon Porcalla