Multisectoral formation People’s Unity against Oil Price Hikes and the progressive umbrella organization Bagong Alyansang Makabayan (Bayan or New Patriotic Alliance) presented the people’s alternatives to the rising oil prices at a forum at the University of the Philippines in Diliman, Jan. 26.

BY EMILY VITAL
Bulatlat
Vol. VII, No. 50, January 27-February 2, 2008

Multisectoral formation People’s Unity against Oil Price Hikes and the progressive umbrella organization Bagong Alyansang Makabayan (Bayan) presented the people’s alternatives to the rising oil prices at a forum at the University of the Philippines in Diliman, Jan. 26.

While Sen. Manuel “Mar” Roxas called for the suspension of value-added tax (VAT) on petroleum products for six months, progressive party-list organizations and scientists’ group presented short term to medium- and long-term solutions.

Bayan Muna Representative Teodoro Casiño Jr. presented pending bills in the Lower House which he described as “180-degree turn from the government’s policy.” He said, “It is important that we propagate these alternatives.”

Problems

Casiño said that deregulation of the oil industry is the problem to the rising cost of petroleum products. He also mentioned monopoly pricing and other unfair practices by foreign oil companies, and the inutility of the government to protect the people from runaway oil price increases.

Short-term solutions, according to the Bayan Muna representative, are to control oil prices and reduce taxes. He said that the long-term solution will be to develop a stron national oil and energy industry.

Regulation

Among the bills filed at the Lower House are: House Bill (HB) 1126, Inclusion of liquefied petroleum gas (LPG) and diesel to the Price Control Act; HB 1724, Repeal of the Oil Deregulation Law; HB 3029, Regulating the Downstream Oil Industry; HB3030, Mandating Centralized Procurement of Oil; and, HB 3031, Buying Back Petron.

Casiño explained that the last three bills complement the bill seeking the repeal of Oil Deregulation Law. The main features of the HB 3029 are the creation of Petroleum Regulatory Council and the Oil Price Buffer Fund (OPBF). The centralized procurement of oil, Casiño argued, will pave the way for the purchase of imported oil products at best prices and terms. He also said that buying back Petron is necessary for regulation of oil prices.

Casiño said that the Bayan Muna, along with Gabriela Women’s Party and Anakpawis will file another bill, upon the resumption of session, seeking the removal of 12 percent VAT on oil products.

Mega-sale of energy

Meanwhile, Giovanni Tapang, assistant professor at the National Institute of Physics in UP and chairperson of Advocates of Science and Technology for the People (Agham), criticized the government’s thrust of selling the country’s sources of energy to foreign investors.

Tapang revealed that the government expects to get P177-billion worth of foreign investments in renewable energy sector such as coal production, wind, geothermal, hydropower energy and biofuels.

He said that the Philippines is rich in energy sources but foreign monopoly firms are the ones benefiting from them. “Alternatives in energy should be used not to gain profit but to serve the people.”

Furthermore, Renato Reyes, Jr., Bayan secretary-general, criticized the framework of the government’s Energy Summit.

Reyes said that the Asian Development Bank (ADB), World Bank (WB), and representatives of big business will make use of the Summit to gain opportunities for investment in renewable energy. “It is far from giving opportunity for the poor.”

Reyes said that the government, big business and foreign investors refuse to recognize the main problem of rising cost of oil products.

He said that the forum tackled issues that will not be included in the Energy Summit. “Kailangan nating igiit ang mga alternatiba ng mamamayan” (We need to assert the people’s alternatives.) Bulatlat