Gasoline, Diesel Prices now more than Double
Since Arroyo became
president
As
of January 2007, the prevailing pump price of gasoline and diesel is now
more than twice their price when President Gloria Arroyo took over in
January 2001.
BY IBON Foundation
Posted by
Bulatlat
As of January 2007, the prevailing pump
price of gasoline and diesel is now more than twice their price when
President Gloria Arroyo took over in January 2001.
Compared with their respective levels
before the downstream oil industry was deregulated in April 1996, the pump
price of gasoline is now more than six times higher while that of diesel
is more than eight times higher. In addition, the current pump price of
gasoline and diesel is almost four times and five times, respectively of
their price at the start of deregulation. These figures also show that
62.98 percent of the increases in the pump price of gasoline and 57.63
percent of the increases in the pump price of diesel since the oil
industry was deregulated happened under the term of Arroyo. (See Table
1)
|
Table 1
Comparative pump price of premium gasoline and diesel
(in P per liter) |
|
Period |
Premium gasoline |
Diesel |
|
Before deregulation
(1972-1995 average) |
5.99 |
3.98 |
|
Start of
deregulation (prevailing pump price on April 1996, the month RA
8180* was passed) |
9.50 |
7.03 |
|
Start of Arroyo’s
term (prevailing pump price on January 2001) |
16.56 |
13.82 |
|
Present price
(prevailing pump price as of January 2007) |
37.33 |
32.62 |
|
* RA 8180 refers to the first oil
deregulation law which was replaced by RA 8479
Compiled by IBON
based on DOE data |
The Arroyo government can of course argue
that the oil price increases during its watch were very steep due to
developments in the world oil market that are beyond its control. But
government should be held accountable because of its deregulation policy
that allowed domestic oil prices to soar. Since the oil industry was
deregulated, there have been at least 81 rounds of oil price hikes (OPH)
for diesel or an average of more than eight OPH rounds per year compared
with only one round annually before the industry was deregulated. In 2005
and 2006 alone, at least 36 rounds of OPH for diesel have been recorded.
(See Table 2)
|
Table 2
Summary of OPH and rollback rounds for diesel pump price |
|
Period |
OPH |
Rollback |
|
1971 - March 1996
|
23 |
15 |
|
April 1996 - November 1997
(RA 8180) a. |
7 |
3 |
|
December 1997 - June 1998
(Transition Period) |
2 |
2 |
|
July 1998 - December 2004
(RA 8479) b. |
38 |
11 |
|
2005 |
19 |
6 |
|
2006 |
17 |
12 |
|
As of January 2007 |
0 |
3 |
|
Notes: |
|
a. The SC declared RA
8180, unconstitutional on Nov. 5, 1997. |
|
b. Congress passed RA
8479 in Feb. 1998 and full deregulation took effect in Jul. 1998. |
|
Compiled by IBON
based on DOE data |
If only to check the uncontainable price
increases of oil products, which soared tremendously during its watch, the
Arroyo government should have long repealed Republic Act (RA) 8479 or the
Downstream Oil Industry Deregulation Act of 1998.
Unfortunately, it continued to implement
this flawed policy while misleading the public that the solution lies in
its alternative fuels program such as RA 9367 or the Biofuels Act of 2006.
Such program, however, does not answer the urgent problem of frequent oil
price hikes and exorbitant prices and only serves the interests of
landlords and big businessmen involved in the sugar and coconut
industries, including Arroyo’s own family. IBON Foundation/posted by
Bulatlat
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