The Filipino tuna-fishing hub of General Santos City is struggling with the rapidly rising cost of diesel fuel, with local fishermen urging the government to assist the industry.
On 7 June, the price of diesel in General Santos adjusted up by PHP 6.55 (USD 0.12, EUR 0.11) per liter, or more than 8 percent, to PHP 85 (USD 1.60, EUR 1.50) per liter. The current price is PHP 30.30 (USD 0.57, EUR 0.54) per liter higher than it was on 1 January, 2022, according to Rappler.
Fuel costs now account for roughly 60 percent of the total cost of fishing, according to Socsksargen Federation of Fishing and Allied Industries Incorporated President Dominic Salazar. Fishing companies are doing what they can to reduce operational costs but may still require government assistance if diesel prices remain high or rise further, he said.
“It would be quite difficult to deal with the situation anymore for many industry players,” he said.
As many as 120,000 people work in the fisheries sector in General Santos, which includes fishing companies, six tuna canneries, and other industry-related companies and facilities. The city earns about USD 58 million (EUR 55.4 million) annually from exporting fresh, chilled, and frozen tuna products.
However, a number of fishing companies in the region are considering temporarily suspending operations if they don’t receive assistance, Salazar said. He called for a suspension of the Philippines’ value-added tax and excise tax on diesel to help lower fuel prices, and for a reduction in fish imports as a means of boosting prices for domestically caught fish. Salazar said he’s heard the government is seriously considering some of the measures.
Ruel Libawan, a member of the Minanga Fishermen Association, urged the government to provide subsidies for boat operators and fishermen, some of whom have already left the industry due to the financial hardship caused by higher fuel prices.
“Fishing has become expensive. We cannot go farther out to sea with the limited fuel we can afford to buy. Paddles won’t work. With our lesser catch, we can hardly buy our needs,” Libawan said.
Salazar warned the economy both locally in General Santos City and nationally across the Philippines will be harmed if the industry contracts, causing a loss of jobs and eventually a long-term increase in domestic fish prices.
Photo courtesy of xuperduper/Shutterstock
