‘Consumers’ Revolt’
Militants gear for campaign vs oil price hikes

Last week’s round of oil price increase was the 63^rd since the oil industry was deregulated in 1996. A new round of militant protests has begun and militant labor and transport groups want the Oil Deregulation Law repealed immediately.

By Alexander Martin Remollino 
Bulatlat.com

Militant labor and transport groups are calling for the repeal of the Oil Deregulation Law following a new round of oil price hikes by both big and small industry players last week.

The call was made as various cause-oriented organizations led by the Kilusang Mayo Uno (KMU or May 1^st Movement) and transport group Piston are gearing for a massive campaign against the oil price hikes.

Joel Maglunsod, KMU secretary-general, had earlier warned that the series of oil price increase will “trigger a massive consumers' revolt against price hikes."

Noting that there have been 63 rounds of oil price hikes since the country's downstream oil industry was deregulated in 1996, Maglunsod called on Congress to review and repeal the Oil Deregulation Law.

"We cannot allow ourselves to be swayed by the whims of the oil companies whose primary interest is to earn more profits," Maglunsod said. "We could only be protected from predatory pricing if prices are regulated by the government. The Oil Deregulation Law should be immediately reviewed and eventually repealed to provide urgent protection for our consumers."

KMU, Piston and youth group Anakbayan gave indications of what is to come by picketing the oil depot in Pandacan, Manila earlier in the morning of Feb. 4.

Piston followed up with a noise barrage in Cubao, Quezon City in the afternoon of the same day. Piston's affiliates in various provinces are preparing for a series of protest actions and calibrated transport strikes in the coming weeks as part of a continuing campaign against oil price increases.

Oil price hikes

First to raise oil prices this month was small player Eastern Petroleum Corp. with an 80-centavo-per-liter increase in its gasoline prices last Feb. 1 and a 50-centavo-per-liter increase in its diesel prices the following day.

Flying V, another small player, followed suit, raising its gasoline prices by the same amount as that of Eastern Petroleum for the same product and its diesel prices by 53 centavos per liter.

On Feb. 3, major player Pilipinas Shell raised its liquefied petroleum gas prices by 75 centavos per liter.

Last week’s hikes were the third round of oil price increases for this year. Last month, oil companies raised their gasoline and diesel prices by a total of 80 centavos a liter. They cite the continuous upward trend of oil prices in the world market and the foreign exchange drop.

Downward trend

But independent think tank Ibon Foundation reported that since oil prices were deregulated in 1996, there have been several instances where local oil prices were raised even as prices of petroleum products in the world market were on a downward trend.

And oil price increases have brought more profits to oil companies at the expense of the people’s welfare, Maglunsod said.

"The unstoppable oil price hikes and their aftershock of increased prices of basic commodities continue to offend the broad masses of people," Maglunsod said. "While wages are pegged to the floor, the government readily allows oil companies to jack up their prices anytime at any rate they want.”

Meanwhile the new party-list group Gabriela Women's Party (GWP) assailed oil companies for ignoring the plight of consumers. "Oil companies act as though they are the only ones affected by the continuing drop of the peso," said GWP chair Liza Largoza-Maza, a former Bayan Muna representative. "If they are worried about their profits, mothers like us are worried about how else to relieve our children from hunger."

Moratorium and unity

Before the latest round of oil price hikes took place, GWP had called for a moratorium on oil price increases. In a statement Jan. 31, Nanette Miranda-Tampico, GWP director for labor concerns, called for an urgent need for the government to impose a moratorium on oil price increases.

"Oil prices must be kept at a minimum to at least ease the impact of the economic crisis on the ordinary Filipino. The Arroyo government, while very much active on the campaign trail should not forget its responsibility," Miranda-Tampinco said.

The GWP also called on commuters, transport groups, and other sectors to unite in calling for a stop to oil price increases and the immediate repeal of the oil deregulation law. "We all suffer from these, and we understand why drivers need to ask for fare increases," said Miranda-Tampico. "But your wives and relatives are also commuters. Prices of commodities are going up and we know our pockets cannot stand fare increases." Bulatlat.com

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