Junking deregulation
By extension, the court order of Pampilo has put in the spotlight not only the abusive oil firms but government’s deregulation policy as well. A contrary finding by the court from the results of the DOE-DOJ Task Force’s probe will further discredit the already unpopular RA 8479. Malacañang could not afford public opinion against deregulation to snowball, which no less than Mrs. Gloria Arroyo called as “irreplaceable”.
What is at stake for the Arroyo administration is the billions of pesos in windfall taxes it rakes from unbridled oil price hikes under deregulation. The 12 percent value added tax (VAT) imposed on oil products has become the largest source of income for the corrupt and graft-ridden government. And the higher the oil prices, the higher the VAT collections.
But while irreplaceable, Malacañang is open to its amendment if only to ease public opposition. Amendment, however, will not resolve the basic issue of monopoly control and overpricing. The Oil Deregulation Law is pro-cartel by design and effective state intervention especially on pricing is forbidden. By pushing for the law’s amendment, government only wants to further legitimize the abuses of the oil firms.
Finally, it must be emphasized that the order of Pampilo only calls for an investigation, which means that the results can go either way. Anti-deregulation proponents thus must continue to exert political pressure on policy makers and expose the defects of RA 8479 and the Big Three-Malacañang conspiracy.
We could not afford to be passive observers and just let the process initiated by the court take its course. Like the Big Three and Malacañang will surely be, we must remain active players to influence the outcome of the probe. We also must continue challenging Congress to pass a new law that will effectively regulate the oil industry, curb overpricing and dismantle the oil cartel.(Bulatlat.com)
Sources
1 Petron to solons: ‘Examine our books’, Philippine Daily Inquirer, Dec 6, 2008
2 Chevron wants to keep Big 3’s books closed, Philippine Star, May 12, 2009
3 ‘Big 3’ cleared of cartelization, Philippine Daily Inquirer, Feb 9, 2009
ang dami pang imbestigasyon eh, ang sulusyon jan ibasura na yang Oil Deregulation Law at iabalik yung Oil Buffer Fund na pangsubsidies ng gubyernong makadayuhan. kahit pa anong imbestigasyon ang gawin ninyo wla yan kasi my batas na kumukumpas s pagtataas nila ng presyo. kita nyo na ayan ba ang globalization na ipinangangalandakan ng burgesya ng planetang ito, destruction sa sangkatauhan at planeta ntin ang nagyayari eh, buhay na nakikita ntin yan.galing ng economic planner ng emperyo ng kano, hahaha.
basahin nyo yung shock doctrine dun makikita nyo ano ba nagyayari talaga.