Southern RP Transport Groups Hold Summit, Demand More Rollback on Oil Prices, Etc.

DAVAO CITY, Philippines (Mindanao Examiner / September 17, 2008) – Public transport groups in the southern Philippines held a summit Wednesday in Davao City in an effort to strongly campaign for the more rollback in prices of oil and scrapping of the Value Added Tax (VAT) on petroleum products.

The summit was organized by the Transport of Southern Mindanao for Solidarity, Independence and Nationalism (TRANSMISION).

Edil Gonzaga, the group’s spokesman, said despite recent rollbacks on oil prices, transport operators and public utility drivers should not waver in calling for the scrapping of the 12 percent VAT. “In fact, we should not be contented with the rollbacks because oil companies are not transparent in their pricing schemes,” he said.

Gonzaga said there is dire need for the government to have a permanent solution to stop oil companies from just raising their pump prices. “There is a strong need for the nationalization of local oil industry because this industry is vital to the country’s economic development, therefore should not remain in the hands of profit-driven oil cartel,” he said.

Transport Strikes Leave Thousands Stranded

DAVAO CITY, Philippines (Mindanao Examiner / May 12, 2008) – Thousands of passengers were stranded Monday after transport strikes paralyzed major cities across the southern Philippines.

The transport strikes, organized by various organizations and militant groups, left commuters stranded in the cities Davao, Iligan, Cagayan de Oro and General Santos and several areas in the provinces of Davao, Cotabato and Agusan.

Jeepney operators were demanding a roll back in prices of oil and petrol and for the government to scrap the Oil Deregulation Law.

“Reports from our groups in different areas in Mindanao showed that thousands were affected by the strikes. We don’t want these things to happen, but we need to send a strong message to the government that poor people are suffering from high prices of oil and basic commodities,” Roger Santos, a militant leader, told the Mindanao Examiner.

The militant Bagong Alyansang Makabayan (Bayan) said the transport strikes paralyzed about 95 percent in those areas. Bayan was backing the strikes called by the Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide or PISTON.

Aside from Bayan and PISTON, the protest was also participated by various militant groups such as the Kalipunan ng Damayang Mahihirap, Farmers Association of Davao City-KMP, Kilusang Mayo Uno, Gabriela, Promotion of Church People's Response, Consumer Alert, Anakbayan, Barangay Council for Women, and Kalitawhan.

In Davao, more than 200 protesters manned at least five different areas where they persuaded other transport operators to join the strike.

“We have anticipated such support from the people of Davao City and we are positive that the strike will be successful especially with the supports that have been coming from the drivers themselves,” said Jeppie Ramada, Bayan secretary-general.

Ramada said they have the support of the public.

“The drivers are not alone in the fight against the relentless price increases of oil. The broad support from the people who always bear the brunt of high cost of living will be with them,” he said.

There were reports of violence and the strikes ended peacefully later in the day, he said. (Mindanao Examiner)

Postpone Village Polls And Then Blame High Prices Of Crude Oil

MANILA, Philippines (Mindanao Examiner / 18 Sept) – With prices of crude oil soaring, Filipino lawmakers now have reasons to postpone next month’s village polls in what they say would be a big savings for the government.

Cebu Rep. Eduardo Gullas said the fresh surge in crude oil prices to new highs above $80 per barrel drove the House of Representatives to finally pass a bill seeking to reset the Oct. 29 Barangay and Sangguniang Kabataan elections to May 2009.

“This is not just about the modest government savings. This is about stopping some P8 billion in election-related spending by candidates from being needlessly pumped into the system at a time when oil prices are hovering at or near record highs,” Gullas said in a statement sent to the Mindanao Examiner.

Gullas is the author of the bill that seeks to postpone the polls despite a strong protest from many groups to cancel the elections.

He insisted that the P8-billion spending would come barely six months after bets in the May 14 mid-term elections swamped the system with tens of billions of pesos.

The Bangko Sentral ng Pilipinas (BSP) said there is a potential new inflationary pressure on consumer prices that may be brought about the recent surge in oil prices.

"High oil prices are becoming a concern. Definitely, it will have an impact on inflation, not immediately this September because the oil companies here still have inventory," BSP Deputy Governor Diwa Guinigundo said.

Guinigundo said the adverse impact of the recent surge in oil prices would likely be felt starting October, right around the time election-related spending in connection with the Barangay and SK polls is expected to heighten.

Crude oil futures touched record highs above $80 per barrel last week.

"If we unnecessarily stir inflation in a big way, we're afraid this might force the BSP to eventually raise interest rates, or keep them at current levels, at a time when other countries are already lowering rates," Gullas said.

The high lending rates in turn could dampen the country's strong economic expansion, and set back the debt-laden government's financial recovery, Gullas warned.

"We know how indebted the National Treasury is, despite the favorably strong peso that has allowed the government to lessen its dollar-denominated liabilities. The government is thus extremely vulnerable to rising interest rates, just like the private sector," Gullas said.

Excessive money supply tends to put upward pressure on consumer prices as people are induced to spend more when they have more cash in their pockets.

Raising interest rates is one of the options available to the BSP to curb excessive money supply and fight any added inflationary risks.

The polls have been previously reset many times and maybe postponed in 2009 because of the Presidential and national polls in 2010. (Mindanao Examiner)