This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. V, No. 28, August 21-27, 2005
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
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 © 2004 Bulatlat
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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.