‘Communal action’ vs oil firms urged

BY DENNIS GADIL

SENATORS yesterday said a new form of "communal action" should be directed against big oil players whose appetite for profits has gone unabated despite the looming food shortage and other economic difficulties faced by ordinary Filipinos.

Sen. Benigno Aquino III said his initial curiosity has now morphed into outrage as oil companies continue to jack up their prices amid a strong peso and the recent 1 percentage point reduction in oil tariff.

"Did they not benefit from the same? With constant prices, it would have taken less pesos or dollars to buy (petroleum)," he said.

The 50-centavo increase this weekend is the sixth since January, bringing the total amount of price increment to P3 per liter.

Prices of premium and unleaded gasoline now range from P44.17 to P48.65 a liter, diesel from P36.01 to P41 a liter and kerosene P41.30 to P46.80 per liter.

Malacañang has rejected proposals to suspend the implementation of the 12 percent value added tax on oil products, saying it would result in a P60 billion revenue loss and lower credit ratings. Last January, it effected a 1 percentage point reduction (to 2 percent from 3 percent) on the tariff on oil as an alternative to calls for suspending the VAT on oil or amending the Oil Deregulation law.

Aquino said the continued appreciation of the peso against the dollar should have an offsetting effect in the upward movement in world oil prices. The peso has been hovering at the P41.755 level against the dollar since last week.

"I’m curious if the upward movements are matched by equivalent price reductions when world prices go down," he said.

He also said there is no moral justification to increasing pump prices the very minute world crude prices go up and while the people are suffering.

He said there should be a form of "people power" against corporations like giant oil firms.

Sen. Francis Escudero, Senate ways and means chair, said the greed of the oil companies is the best argument for removing the VAT on oil and amending the Oil Deregulation Law.

VAT SUSPENSION PUSHED

Sen. Manuel Roxas II has been proposing the suspension of VAT on oil products for at least six months to give reprieve to oil-dependent sectors, which will spill over to consumers in the form of lowered prices of basis commodities. Roxas has filed a bill seeking to suspend the VAT on oil but has failed to get enough support from his colleagues.

Roxas said the almost weekly increase in oil prices would be averted if the 12 percent VAT on oil, the cost of which is added to the pump price, is lifted temporarily.

He said the VAT suspension would automatically redound to a P4 reduction in pump prices of gasoline and diesel.

Senate President Manuel Villar said the people are starting to feel the pinch of soaring oil prices.

"Nakaka-upset talaga. Hindi na biro ang pataas na pataas na presyo ng gasolina," he said.

"Baka dito kailangan natin ng communal action," he added, referring to the earlier call of the Catholic Bishops Conference of the Philippines against corruption in government.

Villar pressed anew for the opening of books of giant oil companies to check if their previous and latest price increases were justified.

He said he now more than ever supports revisiting the Oil Deregulation Law to clearly define the power of government to enforce the opening up of books of oil firms.

Villar has said oil companies should be charging consumers the "net" of increase in cost of oil per barrel in the world as against the current dollar exchange rate.

TRANSPORT STRIKE

The militant drivers group Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (Piston) said it would soon stage a nationwide transport strike in protest of the unabated oil price increases, especially of diesel.

The protest action will push for a moratorium on increases, repeal of the Oil Deregulation Law, lifting of the 12 percent VAT on oil, and the "re-nationalization" of Petron Corporation, said George San Mateo, Piston secretary general.

He said the latest price hike further pushed down drivers’ income to almost P125 from P225 per a day after driving for 12 to 14 hours.

He said the cause of the increases is the "greed" of the oil firms and President Arroyo’s "connivance" with the oil cartel.

San Mateo also said Piston is opposed to the provisional 50-centavo increase being sought by transport groups under the "Malacañang-directed 1-UTAK party list group."

"Under a situation of continuing oil price hikes, a fare hike will not help the driver for this will only aggravate more the rapid reduction of passenger volume due to high cost of fares," he said.