Bu-lat-lat (boo-lat-lat) verb: to search, probe, investigate, inquire; to unearth facts

Volume III,  Number 43              November 30 - December 6, 2003            Quezon City, Philippines


 





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Negros-wide Transport Strike
Drivers, operators protest 58th oil price hike since 1996

Public transport drivers and operators were about to petition for a P1 fare hike last week when they were slapped with another oil price hike – the second in a month. The recent oil price hike was the 58th since the oil industry was deregulated seven years ago. Drivers are threatening a big transport strike.

By Karl G. Ombion
Bulatlat.com/Cobra-ans

BACOLOD CITY -- The militant United Negros Drivers and Operators Center (UNDOC) has slammed the government and oil cartels anew for the new round of oil price hike, as it threatened to stage massive strikes and petition for a P1 fare rate increase.

Jesse Ortega, UNDOC secretary-general, scored the Macapagal-Arroyo administration and oil giants as being hell-bent on making the people poorer by further liberalizing the oil industry resulting in frequent oil price hikes.

Ortega made the statement last Friday hours after oil companies increased the prices of petroleum products by an average P0.47 per liter. It was the second in a month.

"This is too much, this is evil, and this will only turn the lives of our people into a state of total poverty and misery," he said.

Fare hike petition

Days before the new hike in prices of petroleum products, Ortega's group was planning to petition for a P1 fare increase because of "deplorable hardships by drivers who only make a take-home earning of P50 to P66 at the most per 12-hour work everyday."

"We were still planning for a petition, and they slapped us with another round of oil price hike," Ortega said.

Ortega said that with the Oil Deregulation Law in effect, the government and the oil giants continue to rake super profits, while the Filipino people wallow in misery.

Bulatlat.com research reveals that from 1996 – the year the first oil deregulation law (RA 8180) took effect - until 2000, the prices of petroleum products shot up 25 times. Since then, prices increased 22 times more (Dec. 2000-Dec. 2002). This year alone, oil prices went up 11 times – with last week’s increase the 58th under oil deregulation.

Despite the continuous slide of world crude oil prices from September 2001 until today, the oil giants have increased the prices of oil products through various overpricing and transfer pricing. Thus, contrary to claims of losses by oil companies, the super profits of the oil giants are on a steady rise, with a total net income for Shell, Caltex and Petron at P16.7 billion from 1998-2000, and about P11 billion from 2001 to first half-2003.

In addition, the oil giants’ income from overpricing alone registered a staggering P1.7 billion in 1998, P5 billion in 2000, P1.24 billion in 2001, P4.5 billion in 2002, and P2.2 billion in first half of 2003.

Dictating prices at will

Explained Epi Gelle, Bayan Negros secretary-seneral: "In a deregulated environment, oil giants can now easily dictate the prices of petroleum products at will and anytime."

This is only proved, Gelle said, that the oil deregulation law did not at all break up the monopoly control of oil cartel, or open the market to new players to become competitive.

The deregulation of oil has merely given the oil giants more power to dictate prices and control of the country’s oil reserves and energy resources, he added.

Ortega on the other hand said that the impact of oil cartel’s exploitative practices is harshest on the poorest sectors of society, especially the drivers and the "remedyo heneral" (odd jobbers).

Citing case studies, he said that for every peso that a consumer spends on oil product, the government earns not less than P0.10, and that for every P4 that commuters pay for the first five kilometers of their ride, an average of P1.16 goes to the oil companies, P2 to the operator (as rental for "boundary"), and a measly P0.84 to the driver.

Aside from this, the oil price hike affects the prices of basic commodities. Bulatlat.com studies show that prices of basic agricultural commodities in the region increased by at least 10%, and up to 16% for non-agricultural goods in 1998, and surged to as high as 39% from 2000 to first half of 2003.

As of press time, UNDOC is spearheading Unity Forums with various sectors to draw the broadest support for their planned massive strikes and fare hike campaign. Bulatlat.com

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