Fuel prices hikes are impacting the Philippines’ “tuna capital” of General Santos City, with operators’ production costs surging.
The price of diesel fuel has risen almost 20 percent to PHP 79.35 (USD 1.52, EUR 1.38) per liter in the past month, Minda News reported 15 March. As fuel input accounts for around 60 percent of total fishing expenses, local fishing operations have faced a steep increase in operating costs, Socsksargen Federation of Fishing and Allied Industries Inc. (SFFAII) President Dominic Salazar told Minda News.
“The fishing industry is already feeling the pain brought about by the fuel-price increases. Some players I talked with are even considering to temporarily stop their operations if this will continue,” Salazar said, adding that the current situation may also lead to higher fish prices and higher unemployment rates among workers in the industry.
Salazar said his organization has been working with local authorities to come up with possible methods for ameliorating the pain felt by local producers. They are considering issuing a request to the country’s central government to remove value-added taxes and excise dutie, with Salazar saying he believes the local tuna-fishing sector can maintain its current operations if those taxes are suspended. The proposal was first put forward at the industry-hosted National Tuna Congress in the Philippines in 2018.
Salazar said his organization is also considering calling on the Filipino government to limit fish imports, which he said will enable local fishing companies to sell their products at higher prices.
Six out of seven tuna canneries in the Philippines are located in General Santos City. Exports of fresh, chilled, and frozen tuna are worth around USD 58 million (EUR 52.5 million) a year. Last year, the city port complex played host to 12,979 foreign and domestic fishing-vessel visits and the unloading of 234,894 metric tons (MT) of fish.
Photo courtesy of Tony Magdaraog/Shutterstock
