Mass actions being readied for P9 oil price rollback

Mass actions being readied for P9 oil price rollback

“It is well within the capacity of the Big Three oil companies to implement a significant rollback as their profits have steadily increased in recent years. It is simply revolting for us poor people to see the Big Three’s profits soar as oil prices rise unabated while we suffer from poverty and hunger.” – KMU
By MARYA SALAMAT
Bulatlat.com

MANILA – Progressive transport and labor groups in the country are gearing up for a nationwide day of protest against the oil companies’ overpricing. This Monday, oil companies announced its long-awaited price rollbacks amid the downward trend in prices of oil products in the world market. But its rollbacks were less than the amount estimated by the energy department officials of P2 ($0.047), and far less than the “overpricing of P9” ($0.21)which independent analysts and various peoples’ organizations have previously asked the oil companies to slash.

In the budget hearing in Congress last week, the energy officials led by Energy Secretary Jose Rene Almendras estimated the needed roll back at P2. They told lawmakers they would investigate with the Department of Justice the oil companies who would not roll back their prices by P2.

But last Monday when most oil companies at last announced some price rollbacks, only the French newcomer Total Philippines rolled back their price by more than P2, bringing down their diesel by P2.35 ($0.055) per liter, while the price of their gasoline was lowered by just P1.50 ($0.035)per liter.

Of the Big Three, only Petron slashed by P2.50 ($0.059) the price per liter of their gasoline. Citing other “variables” affecting their prices, the Big Three including Petron lowered the prices of most of their products by less than P2, or just by P1.70 per liter of diesel and kerosene. Shell and Caltex lowered by P1.50 ($0.04) the price per liter of gasoline.

In the past, when the opposite is happening and prices of oil in the world market are rising instead of falling while more pesos are needed to purchase a dollar, an immediate and steep increase in oil prices in the Philippines usually ensues, noted George San Mateo, secretary-general of the transport group Piston.

“Immediate and steep increases when the world prices of oil increase and snail-paced and meager decreases when the world prices of oil decrease — this is where we can see the overpricing being implemented by the Big Three,” said Elmer “Bong” Labog, chairman of progressive labor center KMU.

Investigate oil companies or risk looking like liars and inutile

Bayan Muna Representative Teddy Casiño challenged the energy department to make good their threat against the oil companies. “They (DoE) should file a case against the oil companies at the justice department, or the Department of Energy would look like a liar or inutile,” said Casiño.

“It is clear that the Big Three oil companies do not fear or respect the Department of Energy to implement the meager rollback demanded by the agency,” said Labog. “The problem,” he said, “is that the DOE and the entire government do not have coercive powers over the Big Three.”

The labor group seriously doubts whether the DOE will make good its threat to investigate the Big Three’s profits. But even if the DOE does investigate, the labor group also doubts whether that will be productive. They said the Big Three “knows many magic tricks when it comes to declaring their profits.”.... MORE

Source:  Bulatlat.com

URL: http://bulatlat.com/main/2011/08/18/mass-actions-for-p9-oil-price-rollback-being-readied/