This story was taken from Bulatlat, the Philippines's alternative weekly newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. V, No. 32, September 18-24, 2005

Arroyo Hit on Oil Prices; Strike Cripples Transport in Provinces

The leader of a nationwide transport group hit President Gloria Macapagal-Arroyo for saying early this week that the Philippines is one of the countries with the lowest oil price increases thus far. Piston president Mar Garvida said that with workers’ wages also at low levels, “low” oil price hikes do not mean anything to the ordinary folk.

BY ALEXANDER MARTIN REMOLLINO
Bulatlat

The leader of a nationwide transport group hit President Gloria Macapagal-Arroyo for saying early last week that the Philippines is one of the countries with the lowest oil price increases thus far.

World oil prices reached historic highs late last month, with Dubai crude oil prices shooting up to $55 per barrel and New York crude prices jumping to $69 per barrel. Oil companies in the Philippines, particularly the so-called Big Three – Shell, Caltex and Petron – have reacted to this by implementing almost-weekly increases of P0.50 ($0.009 based on a $1:P56.17 exchange rate as of Sept. 16) for every liter in the prices of their products.

“We can say we are among the 26 countries with the smallest price increases in gasoline,” Arroyo said during a televised roundtable discussion with Energy Secretary Raphael Lotilla, National Power Corporation (Napocor) president Cyril del Callar and Meralco president Jesus Francisco last week.

But Mar Garvida, president of the Pinag-isang Samahan ng mga Tsuper at Opereytor Nationwide (Piston or united nationwide association of drivers and operators), said Arroyo knows nothing except to justify oil price increases.

Interviewed by Bulatlat, Garvida said “It may be true that we are among the countries with the lowest price increases so far,” he added, “but what is the cost of living in the Philippines? Do workers have high wages?”

On the national level, a family of six – the average Filipino family – now needs a total of P598.60 to survive daily, based on July data from the government’s National Wages and Productivity Commission (NWPC). Conversely, the national average daily minimum wage amounts to only P204.74, which is P393.86 short of the national average living wage for a family of six.

Nationwide transport strike

Garvida’s group led a nationwide transport strike Sept. 12 to protest against oil price increases and the implementation of the expanded value-added tax (EVAT) law. Another nationwide transport group, the Philippine Confederation of Drivers and Operators – Alliance of Concerned Transport Organizations (PCDO-ACTO), joined Piston in the protest action.

Modesto Floranda, Piston vice-president for the National Capital Region (NCR), said that as much as 95 percent of public transport was paralyzed in Metro Manila. NCR police, meanwhile, estimated the extent of transport paralysis in Metro Manila at 50 percent.

In the provinces, Piston reported 100-percent paralysis of public transport in Angeles City, Pampanga; Taytay-Angono in Rizal, Baguio City, Cebu, Sorsogon, and North Cotabato.

In Central Luzon, public transport was paralyzed by 90 percent in the rest of Pampanga, 90 percent in Pangasinan, 90 percent in Bulacan, and 90 percent in Tarlac. There was 90-98 percent paralysis in several towns in Bulacan.

In the Visayas, the strike crippled transport in Panay island by 70 percent, Iloilo City by 90 percent, and Negros Occidental by 90 percent. Meanwhile, in Mindanao there was 85 percent paralysis in Cagayan de Oro City, 98 percent in Davao City, 90 percent in Polomolok, South Cotabato, 90 percent in Panabo, 90 percent in Tagum-Compostela Valley, 95 percent in Iligan City, 90 percent in Gingoog City, 95 percent in General Santos City, 95 percent in Digos, Davao del Sur, and 85 percent in Malaybalay, Bukidnon.

In these areas, companies and schools either closed for the day or sent their employees and students home early.

In the Bicol region, bus and tricycle drivers also went on strike in support of Piston’s action.

The strike by Piston also demanded the scrapping of the oil deregulation law and the nationalization of the oil industry.

Garvida also said that the introduction of E-10 ethanol-blended gasoline in the Philippines by Seaoil and Eastern Petroleum as an alternative fuel would have been a welcome development if the country had control of the technology for it. A mixture of 90 percent gasoline and 10 percent ethanol, E-10 is described by Seaoil president Glenn Yu as more economical than ordinary fuel.

“The problem is, the control of that technology still lies in the hands of big business,” Garvida said. “Only the companies selling that product would benefit from it.”

Giovanni Tapang, who chairs Agham (association of science and technology advocates for the people), spoke on possible alternatives to oil during the transport strike. “With a little more processing, virgin coconut oil and even gin can be used as fuel,” he said. “But for so long as we have no basic industries, that will remain a dream.” Bulatlat  

© 2004 Bulatlat ■  Alipato Publications

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