Oil Companies Slammed for Greed 

Even as anger over the rising prices of oil products mounts, consumers brace for yet another increase with the impending implementation of the 10% Expanded Value Added Tax. 

by NORTHERN DISPATCH
Posted by Bulatlat

BAGUIO CITY - Even as anger over the rising prices of oil products mounts, consumers brace for yet another increase with the impending implementation of the 10 percent Expanded Value Added Tax (E-VAT).  In a news release, Nitz Gonzaga of the Kilusang Mayo Uno (May 1^st Movement) Women’s Department said that the EVAT implementation is just an opportunity for large oil companies to pump up their revenues regardless of the burden that will be added to the consumers.

With E-VAT, oil prices are expected to increase by another P3 to P6 per liter.

“Greed for more profits is the lifeblood of these oil companies. They are heartless and without consideration to the indigent consumers,” lamented Gonzaga. “With the OPH (oil price hike), none but the insatiable oil companies are exempted from its irrational effects.”

In an interview with Carlito Wayas, president of the Metro Baguio chapter of the Pagkakaisa ng mga Samahan ng mga Tsuper at Operator Nationwide (Piston or Unity of Drivers and Operators Associations Nationwide), Wayas explained how the OPH is affecting the nation – including the passengers, drivers and small-scale transport operators.

As it is, according to Wayas, most drivers’ and operators’ daily earnings go only to the maintenance of the vehicle and diesel purchases.  The value of spare parts, fluids and other materials needed for vehicle maintenance will also increase with the price hike in oil products. 

Gerry Diano, another transport group leader, said a driver grosses around PhP1,500 for a 12-day work.  Of this, PhP 500 goes to the operator and PhP 793.25 goes to diesel purchases. The driver is thus left with only PhP 206.75. Diano added that the computation still does not include the driver’s expenses for lunch.

With the implementation of the EVAT, according to Wayas, drivers will be worse off. 

Wayas explained that the general public is also affected because an oil price increase automatically jacks up the cost of services and commodities. A fare hike, according to Wayas, is not the solution because it will only add to the burden of the ordinary wage earner whose income does not increase while prices of basic commodities and services escalate.  

“No pay kayat tayo koma nga ingato ti pasahe gaputa tuluy-tuloy ti panag-ngato ti presyo ti langis, kasapulan a balansien tayo ti kapasidad dagiti umili nga agbayad. Ta ammo tayo met, ken uray ti PISTON, ket agpanpanawagan ken supsuportaranna ti dawat dagiti umili para iti nayon a sweldo” (Although we want to increase fares because of the continuous increase in oil prices, we should also consider the capacity of the consumers to pay. This is why Piston supports the call of workers for wage increase), he said.

Wayas said government must have the initiative and political will to stop both the increase in oil prices as well as the prices of basic goods and commodities. Primarily, he said, government should repeal the oil deregulation law. Only then will government regain control of oil prices.

The government may also institute a system of “centralized procurement” and thus control the importation of oil.  This would also give the government a chance to monitor oil consumption in every part of the country, control the distribution and pricing of oil products. 

In addition, Wayas said, the government must nationalize the oil industry.  With this, the country can gain control over its vast natural oil resources in Palawan and Cotabato. He said that if developed under Filipino control, the oil fields would be able to supply all of the country’s oil needs at a cheaper price. All these are possible only if the government has the will and determination, he added. 

Wayas said the daily noise barrage in Baguio City, which started last Sept. 3, aims to encourage more people to strengthen the resistance against unjust hikes in the prices of oil and basic goods. This action, according to Piston, is linked with the call for the ouster of President Gloria Macapagal-Arroyo and a change in the system of government.  The noise barrage, dubbed “12 o’ clock habit,” is held at noon. Bulatlat

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