Thursday, August 21, 2008 Speak out: Duped by oil firms By Coalition Against Oil Price Increase (CAOPI)
WE are disgusted that despite falling price of crude oil in the world market, pump prices of petroleum products in the domestic market remain unreasonably high.
Gasoline, diesel and kerosene prices, which range between P55 per liter to P59 per liter, are still too high and fail to effect significant drop in expenditure for fuel products and in prices of commodities.
In July 2008, crude oil reached $147 per barrel.
As of Aug. 13, it has fallen to $113 per barrel with a $34 difference.
As of Aug. 14, gasoline price rolled back for the third time by P3.50 per liter, and diesel and kerosene rolled back for the
second time by a total of P1.50 per liter.
But if we compare this with the frequency of oil price hikes with gasoline prices that increased 19 times (total of P19 per liter) and diesel and kerosene prices that went up 21 times (or a total of P24 per liter), we would see that big oil companies are laughing their way to greater profits.
Global oil firms bloat the price of crude oil as they control all stages of oil production and distribution.
They also overprice the crude oil which they supply their local counterparts, through transfer pricing.
Moreover, according to a 2006 study by the US Senate, 30 percent of the cost of crude oil is driven by speculation.
Locally, this means pump prices are bloated by 23 percent. An estimated P31 per liter of oil pump prices also go to windfall profits of oil companies.
We know that with every 10 percent increase of fuel price, an additional 160,000 Filipinos become poor.
With this, food price also skyrockets, with millions of Filipino getting hungry.
Until today, the government insists that the deregulation policy is best for the Philippine oil industry.
The Coalition Against Oil Price Increase (CAOPI), with the rest of concerned Cebuanos, believes otherwise.
The Philippine oil industry must be regulated by government to protect the welfare of the Filipino consumers.
In addition, VAT on oil must be removed, as this would result to P7 per liter decrease of price of diesel, gasoline and kerosene, and P88 per tank decrease of LPG price.
CAOPI denounces the target of the Arroyo government of collecting VAT on oil of P73 billion to P80 billion for this year alone.
This target nearly doubles the oil VAT collection in 2006 which amounted to P49.2B.
Today, on the 35th death anniversary of Ninoy Aquino, we will enliven his noble aspirations by launching the "ALAY LAKAD Batok sa Pagsaka sa Presyo sa Lana."
We call on all concerned Cebuanos to walk with us to call the attention of the government to listen to the people's demands and to act decisively to address the oil crisis.
