Transport, Labor Strikes Loom Amid Threats
of High Oil Hikes
Despite the Arroyo government’s constant refusal to address the lingering
problem of excessive oil prices, PISTON, the country’s largest transport
organization, presses the urgency for scrapping of the Oil Deregulation
Law.
BY MAUREEN
HERMITANIO
Contributed to
Bulatlat
World crude oil prices shot up
to a record high of $55 per barrel for Dubai crude last week. New York
crude oil prices jacked up to a sky-high $69 per barrel last week. Rising
prices of world crude are causing alarm all over the world.
And just as everybody expected, local oil
giants Shell, Caltex, Petron and even new oil players immediately took
advantage of the situation and raised their pump prices by as much as 50
centavos per liter for diesel and gasoline.
The latest increase is the 14th
time for this year or a total of almost 7.50 per liter increase for diesel
and P4.00 for gasoline. Prices of local petroleum products are offensively
high, way too much for ordinary workers and consumers to absorb. But there
seems no stopping to the weekly price adjustments. Oil companies are
shameless and stubborn when it comes to oil price determination, thanks to
the coddling of the Gloria Macapagal-Arroyo government.
Even so many sectors are demanding the
government to come up with significant solutions to unstoppable oil price
hikes and impose rigid and effective price controls, Malacañang is always
at the mercy of foreign oil companies.
Powerless against local oil cartel?
Clearly towing the reasoning of oil
executives, Presidential Spokesperson Ignacio Bunye said Malacañang cannot
do anything about excessive local pump prices since world crude oil prices
are steadily on the rise in the past weeks. Instead of reprimanding oil
companies with the latest increase, the Arroyo government ordered all
government offices and agencies to take on energy conservation measures.
In contrast, Elmer Labog, chair of
Kilusang Mayo Uno (KMU or May 1st Movement), said “Energy
conservation is always good but scrapping the oil deregulation law is the
only significant solution to the oil price hike crisis. Imposing back
regulations on oil pricing will restrain companies like Shell, Caltex,
Petron from enforcing unwarranted price adjustments.”
According to labor center KMU, President
Gloria Macapagal-Arroyo must address the offensively-high prices of
petroleum products or face further waves of protests from the discontent
Filipino masses.
“Total collapse of the domestic economy is
inevitable if the government will not do anything to restrain high oil
prices. Mrs. Arroyo’s threatened presidency will eventually cave in along
with the local economy if she refuses to wield political will in
addressing the oil price crisis,” the labor leader said.
Possible solutions
Transport organization PISTON believes
there are workable solutions to the worsening oil price dilemma. The first
step, PISTON Secretary General Steve Ranjo said, is to repeal the Oil
Deregulation Law.
“Doing away with the oil deregulation law
is the first rational solution to the oil price hike crisis,” Ranjo said.
“The problem lies with the government’s refusal to consider the junking of
deregulation law, which is the main culprit in the unending oil price
hikes. Repealing the deregulation law is just the first step in resolving
the problems of the local oil and energy industry.”
Ranjo also said the Arroyo government must
consider procurement of oil from direct sources other than giant oil
corporations. “Centralized government procurement of oil products will
save us from the weekly oil price hikes. Under the control of the local
oil cartel, it’s as if we have no choice. But under a national centralized
procurement scheme, the government can regulate and control oil prices
depending on the sources. But given the current situation under Arroyo,
this may not materialize. Arroyo is politically weak to effectively
address the oil price crisis. Whoever will replace Arroyo must work hard
to repeal the oil deregulation law.”
Workers and consumers groups
are calling for price controls as well. “The government must impose
effective price controls specifically on petroleum products. Consumers
cannot absorb the effects of the latest oil price hike on prices of basic
commodities, services and public utilities.
Price rollback is another option. The
government must stop tolerating the overpricing scheme of oil companies.
The public needs urgent reprieve from the crippling effects of unending
oil price hikes,” Labog said.
He further said they are
opposed to government proposals to grant emergency powers to Arroyo. “We
are not in favor of giving emergency powers to Arroyo. She may use such
powers for other purposes like hastening the implementation of the
Expanded Value Added Tax and the Charter Change.”
Instead of heeding the
people’s demands, Malacañang (the presidential palace) is bent on
maintaining the 10 percent tax on oil products once the Supreme Court
decides to implement the EVAT.
Petroleum always overpriced
IBON Databank stressed that even though
world crude oil prices are increasing, there are no acceptable reasons for
oil companies to jack up their pump prices. In fact, oil prices are
overpriced from January to August this year.
IBON stated that “Diesel
has been overpriced by PhP1.14 to PhP2.12 per liter while kerosene has
been overpriced by PhP1.14 to PhP2.15 per liter from January to August
this year. Unleaded gasoline, on the other hand, has posted an
under-pricing of one centavo to 33 centavos per liter. But looking at the
high end of its prevailing pump price adjustment during the said period
shows that unleaded gasoline has also been overpriced by 24 to 62 centavos
per liter.
More protests ahead
High oil prices are expected to shoot up
inflation rates to 8 percent for this year. But consumers are far more
worried with the effects of EVAT on oil prices once the Supreme Court
lifts the temporary restraining order on the tax measure.
KMU and PISTON are now preparing their
ranks for another round of nationally-coordinated protests and transport
strikes as soon as EVAT is implemented. Ranjo said that the effect of EVAT
on oil prices will be much more disastrous than the current impact of
rising world crude prices. We expect the upcoming transport strike to be
more extensive given the public’s extreme disgust over the rising oil
prices, worsening economic crisis and the government’s failure to address
these issues all together.”
“The only option we have now is to muster
collective action and launch massive protests and transport strikes
against the double whammy of OPH and EVAT,” Ranjo concluded. Bulatlat
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