Weak Aquino Administration Held Hostage by Oil Companies – GWP Rep. Emmi De Jesus

“A government that has no power to question decisions by multinational oil companies to raise their pump prices has no service to the people who are already overburdened and stumbling from reeling prices after the recent floods and amid massive unemployment and depressingly low wages. People in calamity-stricken areas are yet to recover from floods due to heavy monsoon rains two weeks ago but oil companies threw away all restraint and coldheartedly increased oil prices,” said GWP Rep. Emmi De Jesus.

“A government do not have to rely on the Independent Oil Price Review Committee to tell them whether oil prices are manipulated or not. A government that is sensitive to the financial burden imposed by incessant price hikes should have the capacity to investigate and act on such manipulation in the price of oil. Without such capacity, it is just too easy for these greedy oil companies to hold the government hostage where prices are concerned,” added the Gabriela solon.

There were four upward price adjustments in August. Though the oil companies cut the prices of premium and unleaded gasoline by P0.45 per liter, they increased pump price of diesel by P0.75 per liter, kerosene by P0.60 and regular gasoline by P0.25. The Review Committee is expected to come out with its findings today, at the latest.

“Congress should seriously take the people’s demand to repeal the Oil Deregulation Law and nationalize the oil industry. This is essential in the midst of the uncontrolled oil price hikes and economic opportunism of oil companies,” added De Jesus.

Gabriela Women’s Party for its part sponsored House Bill 4704 to amend Section 4 of RA 9337, urging Congress to exempt oil and petroleum products, as well as prime commodities and basic necessities from the imposition of VAT.

“VAT should be completely removed to ensure that oil prices will be significantly reduced so that prices of other goods would follow. If only to provide an overdue relief measure for the poor families as they continue to suffer from the government’s incapacity to control floods,” ended De Jesus.###