Audit of Oil Companies’Books is Minor Step but Proper Representation Necessary

“We welcome the willingness of oil companies to open their books to an audit team. We do not believe however, that representatives from the Department of Energy and from Oil companies are sound choices to compose the audit team as they bring with them conflict-of-interest that will prevent them from doing their job properly,” said GWP Rep. Emmi De Jesus, reacting to a press conference by spokesperson of oil companies on the issue of overpricing of oil and petroleum products.

“The Department of Energy has a mission to ‘improve the quality of life of the Filipino by formulating and implementing policies and programs to ensure sustainable, stable, secure, sufficient, accessible and reasonably-priced energy.’ But time and time again, it has been quick to defend moves by oil companies to increase the price of oil, like the recently announced increase immediately after the press conference offering an opening of their books to audit. To be truly credible, the audit team must be represented by at least 3 major transport groups, such as PISTON for jeepneys, and other transport groups for bus companies and ocean vessels. Other consumer groups which are stakeholders in other petroleum products such as a representative from the women sector who are primarily LPG consumers and another representative from the fisherfolks who are kerosene-dependent must also be represented,” Rep. De Jesus added.

“Oil prices have increased more than 20 times since January 2011. This is an added burden not only to drivers and small transport operators, but also to the workers, peasants, and fisherfolk. The unabated oil price hikes further grind down the value of the workers’ depressed income. The profits of the oil firms since 2001 have amounted to P141.7billion ($3.27b) in 2010, and the Philippine government has been getting revenues of up to P48 billion annually or a total of P239.6-billion ($5.53b) in the last five years due to the 12 percent VAT on oil,” explained the Gabriela solon.

“At the end of the day, the opening of the books to assure consumers whether there is overpricing or not, is only a temporary measure where we seek immediate relief for Filipinos who are already overburdened with joblessness coupled with high prices of basic commodities. It is about time that beyond these measures, Filipinos should increase their collective voice for the dismantling of the oil cartel and the building of a national oil industry, coupled with the repeal of the oil deregulation law which favors foreign oil companies over the interest of the ordinary Filipino consumer. This is the essence of what the “occupy Wall Street movement” is teaching us. Put a stop to capitalist plunder and place the interest of the ordinary Filipino citizens first,” the Gabriela solon ended. ###