“While jeepney drivers lose P96/day, oil companies rake in P147 M/day from overpricing!”- Bayan Muna

News Release
March 15, 2012

Bayan Muna Rep. Teddy Casiño today revealed that oil companies rake in approximately P147 million every day from overpricing the local pump price of diesel alone. Almost 78% of this amount will go to the four biggest oil companies in the country (Petron – P55 M daily extra profits from overpriced diesel; Shell, P38 M; Chevron, P15 M; and Total, P8 M).

“If we are to extrapolate the monthly earnings of oil companies on their overpriced diesel then it would amount to P4,410,000,000 or approximately P4.5 billion, a very huge amount that can be used by drivers to buy more food for their families. The daily income of jeepney drivers is eroded by P96 per oil price hikes this year. Their estimated daily consumption of diesel is P1,443, while P1,200 is the total amount loaded in a Pantawid Pasada card. How cruel can the government get?” asked Casiño.

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“Aside from this the government of is collecting a huge windfall revenue from additional VAT on oil at the expense of the public interest.”Considering that there is a P1 billion additional VAT revenue for every $1 increase in Dubai crude, there is already a P4 billion VAT windfall for the first quarter of the year alone. Assuming that there is no huge change in the volume of consumption and the level of price for the rest of the year, we can say that the projected windfall VAT revenues for 2012 is P26 billion,” added the progressive solon.

Casiño based his estimates on the February 2012 Dubai crude average of $116/bbl (IMF commodity data) and using $90/bbl BESF 2012 programmed Dubai cost.

“Sobrang laki pala talaga ang nakukuha ng pamahalaan dito sa VAT kaya ayaw ibigay sa mamamayan. Pero nakakalula na talaga ang kita ng mga kumpanya ng langis at ng gobyerno at dapat naman nilang isipin ang interes ng mas nakararami. Kumbaga nga e “they should moderate their greed,” said the progressive solon.

“The Aquino government should forego this gigantic windfall, which is gained in exchange for the suffering of the people. Consumers need immediate and concrete relief, and the president should listen. The estimated immediate reduction in the pump price of diesel if the VAT on oil is removed is almost P6 per liter; almost P7 per liter for gasoline; and as much as P110 per 11-kg tank for LPG.

“Again we demand that marathon hearings should be done to fast track House Bill 2719 to scrap the VAT from oil products and to fast track House Bill 4355 to again regulate the oil industry,” ended Casiño.

Bayan Muna Rep. Teddy Casiño

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