BY EMILY VITAL
January 10, 2008 – 3:38pm
The Arroyo regime’s plan of reducing tariff rates on imported oil by one percent will not protect the public from skyrocketing and exorbitant pump prices, according to the umbrella group Bagong Alyansang Makabayan (Bayan or New Patriotic Alliance).
Bayan pointed out that at the current pace of unregulated oil price movement and with continuing speculation in the global market, pump prices are expected to post an overall increase of as much as P2 per liter in the first quarter of the year alone, easily negating the expected 20 to 25 centavo reduction in pump prices resulting from the planned one-percent oil tariff reduction.
Oil tariffs are taxes imposed by the government on oil companies.
George San Mateo, Piston (Pinag-isang Samahan ng mga Tsuper at Opereytor Nationwide) spokesperson, said that the tariff reduction only benefits oil companies. He said that it will not automatically translate to decrease in oil prices.
Bayan and Piston reiterated that the repeal of the Oil Deregulation Law and the permanent removal of the VAT (Value-Added Tax) on oil products are concrete measures that should be taken by the government in confronting the crisis.(Bulatlat.com)