Wednesday, July 23, 2008 Barrita: Oil profits By Eddie O. Barrita Small Bites
REP. Eduardo Gullas (Cebu, 1st district) said two major oil refiners in the country, Shell and Petron, raked in P70 billion in combined net profits since the Oil Deregulation Law was passed in 1998.
His expose show oil companies, far from incurring losses, were in fact on a roll and were even able to rollback prices upon President Arroyo’s appeal.
Now it’s clear who profited from the law intended to entice new players into the industry and help bring down the prices of oil products.
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Gullas called for a congressional inquiry on oil firms to find out if the weekly fuel prices hike were justifiable.
They should find out whether the under-recoveries oil companies were talking about were merely a cut on their profits.
Otherwise, they must heed Cebu City south district Rep. Tony Cuenco’s call for a drastic rollback in fuel prices.
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Gullas said since January, oil firms raised diesel and kerosene prices 20 times or by P22 to P24 per liter and gasoline prices 19 times or by P19 per liter.
The unabated oil price hike, he said, was a huge contributory factor to the President’s negative 38 satisfaction rating.
So, when oil prices soar, the President’s popularity nosedives?
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Cut-throat competition among Cebu bus operators appears to benefit commuters after Ceres Bus Co. announced it won’t collect increased fare rates unless cut-throat competitors are punished.
For now, no passenger has complained he was still asked to pay the old minimum fare approved by the Land Transportation Franchising and Regulatory Board.
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Soaring fuel prices may force people to ultimately walk or pedal their way to work and school.
Cebu Provincial Board (PB) Member Victor Maambong has asked local government units to promote the use of bicycles instead of gas-guzzling vehicles.
Maambong sang praises on the environmental and health benefits of using bicycles, aside from easing traffic flow.
His constituents will be delighted to see him pedal his way to the Capitol.
