Wednesday, July 23, 2008 Cebu reps back probe v. oil firms
TWO of Cebu’s district congressmen expressed support for Rep. Eduardo Gullas’ plan to seek an inquiry on oil companies, particularly whether the price increases were justifiable.
Rep. Pablo Garcia (Cebu Province, 2nd district) said such an inquiry may be conducted jointly by the committee on energy and on ways and means.
Apart from the rising oil prices, allegations of oil smuggling also need to be examined, said Rep. Pablo John Garcia (Cebu Province, 3rd district).
Gullas called last Tuesday for a House inquiry into the exposé that Pilipinas Shell Petroleum Corp. and Petron Corp. posted combined net profits of about P70 billion since the passage of the Downstream Oil Deregulation Law in 1998.
Cuenco said he will draft a separate resolution calling on officials of large oil companies to justify the series of oil price increases, when Congress resumes session next week.
“A lot of people are wondering whether the unusual and unprecedented rise in prices of oil products is really caused by a real oil crisis, or if the so-called crisis is being used for profiteering at the expense of the people,” said Pablo John.
Signature campaign
Meanwhile, the Coalition Against Oil Price Increase (CAOPI) began a signature campaign to seek congressional action to stop oil price increases.
“We believe that speculation, cartel and war are the three factors that keep global crude prices up,” said a press release from CAOPI, which met yesterday in Cebu City.
Msgr. Cayetano Gelbolingo, vicar general of the Archdiocese of Cebu, attended the convenors’ meeting to give moral support.
Among CAOPI’s member-organizations are the United Church of Christ in the Philippines, Alliance of Concerned Teachers, Health Alliance for Democracy, Pamana-Sugbo, Visayas Human Development Agency, Rural Missionaries of the Philippines-Community Empowerment Resource Network, People’s Globalization Awareness Initiative Network, University of Cebu Political Science Society and the College Editors Guild of the Philippines.
Gullas has pointed out that Shell reported a net profit of P3.1 billion from January to March this year, while Petron reportedly earned P658 million net in the same period.
Chevron Philippines Inc. (formerly Caltex), the third biggest oil firm in the country today, reported a net profit of P2.75 billion in 2006.
Gullas said he will urge the Department of Energy to use its powers under the Oil Deregulation Law to prevent price manipulation by petroleum firms.
He noted that since last January, petroleum companies have jacked up diesel and kerosene prices 20 times, by P22 to P24 per liter, as well as gasoline prices 19 times, by P19 per liter.
Pablo John, for his part, defended President Arroyo from criticism that the P1.50 rollback she convinced oil companies to grant last Monday was a merely a “Band-Aid” solution.
Solutions
“Let us not blame the President. She was hoping for some relief (for Filipinos), and she was able to get relief. Some say it’s a Band-Aid solution but in this time of crisis, we need solutions,” he said.
Garcia and his sister, Cebu Gov. Gwendolyn Garcia, led the Inauguration yesterday of the 240-meter circumferential road, among others, in Barangay Mantalongon, Barili.
During the recently concluded House inquiry on vehicle smuggling in Cebu, Garcia said, the Presidential Anti-Smuggling Group (PASG) admitted that car smuggling constitutes only a “small percentage” of smuggling activity in the country.
When the group was asked for clarification, the PASG said oil was among the “crucial products” being smuggled in huge volumes.
“If indeed the oil being smuggled into the country is being sold at these high prices, then the profits are unjustifiable,” said Garcia. (EOB/GMD)
