In the same fix
In the same fix
Posted 11:44pm (Mla time) Mar 09, 2005
Inquirer News Service
Editor's Note: Published on page A14 of the March 10, 2005 issue of the Philippine Daily Inquirer
THE FIRST quarter of the year isn't over yet, and already there have been two big increases in gasoline prices and three in diesel prices, bringing them to record levels. It certainly looks like we're in for a repeat of the fix in which we found ourselves during the last two years when a seemingly endless stream of oil price increases sent gasoline prices higher by P9.61 per liter and diesel prices by P8.73 per liter by the end of 2004. Not only that, the new round of oil price hikes are sure to have a ripple effect on the prices of essential goods and services -- such as, electricity, water, transportation and, of course, food -- which have been also soaring to all-time highs. The outlook is almost discouraging. The man on the street cannot be faulted if he feels helpless these days.
Just as infuriating is the suggestion by some quarters that Filipinos should just roll with the punches since the Philippines still has one of the lowest pump prices in the region. Energy Undersecretary Peter Anthony Abaya, for example, noting that this year's increases have been triggered by "genuine market forces," unlike the previous years' which were driven by geopolitical developments, asked the local oil industry and the public to accept these new price levels. President Gloria Macapagal-Arroyo has also said that her administration would hold on to its policy of allowing market forces to dictate the prices of oil, food and other commodities.
Presidential Spokesman Ignacio Bunye sounded more reassuring when he said, "The government is looking at all possible options." The President has given the green light for a committee to review the oil deregulation law. She has ordered the Department of Energy to closely monitor pump prices and she has appealed to the "good sense" of the oil companies. On the other hand, Senate President Frank Drilon has proposed that the government buy back control of Petron Corp., in which it now has a 40-percent stake. But such measures only impress the public as obsolete, impractical or long overdue rather than encouraging. They are clearly shortsighted approaches, focusing on the effect and not on the cause of the problem itself: the country's dependence on imported oil. And yet, it has been government policy, dating back to the Marcos era, to get away from this dependence. But the lip service goes on. Shall we just resign ourselves to this outrageous fortune of escalating high prices until we all drop dead?
Of course, we have serious limitations. Money, for one thing, is scarce, especially with a fiscal crisis threatening. That's why Drilon's proposed buy-back of Petron is not that simple. The review of the deregulation law has yet to take off, and at this point the committee seems to be moving like it had all the time in the world. And since it is part of its functions, we would like to presume that the DOE has been faithfully monitoring petroleum pump prices, although we are beginning to wonder why we seem to be always caught flat-footed by global oil price adjustments.
As to the "good sense" of the oil companies, there is no evidence to suspect that it exists after all these years. As Drilon put it, "They [oil companies] can deny this until they turn blue but no, they cannot convince anymore that there is no cartel."
The government may be doing something about the problem. But we do not see it going in a big way into developing and promoting fuel-saving measures and alternative sources of energy. For example, there are new technologies -- some of them Filipino inventions -- that could drastically reduce fuel consumption by 20 percent, if we go by the testimonies of those using them. Solar energy has proven its vast potentials. But these technologies don't seem to be getting the necessary government support to propel them beyond the pilot stage.
In contrast, Malacañang and Congress exhibited some impressive "creativity" in identifying possible sources of funds should the administration decide to preserve its shares of stock in San Miguel Corp. They have also shown uncharacteristic "political will" in legislating new tax measures. And they have gone with boundless "passion" after the Marcos Swiss deposits, the coco levy fund and, not to forget, the pork barrel.
But will the people ever see the government working half as hard to try to rein in the galloping prices of oil products? As we have pointed out earlier, it is not always the lack of money that prevents us from addressing our problems effectively. Sometimes, it is only lack of imagination.
Posted 11:44pm (Mla time) Mar 09, 2005
Inquirer News Service
Editor's Note: Published on page A14 of the March 10, 2005 issue of the Philippine Daily Inquirer
THE FIRST quarter of the year isn't over yet, and already there have been two big increases in gasoline prices and three in diesel prices, bringing them to record levels. It certainly looks like we're in for a repeat of the fix in which we found ourselves during the last two years when a seemingly endless stream of oil price increases sent gasoline prices higher by P9.61 per liter and diesel prices by P8.73 per liter by the end of 2004. Not only that, the new round of oil price hikes are sure to have a ripple effect on the prices of essential goods and services -- such as, electricity, water, transportation and, of course, food -- which have been also soaring to all-time highs. The outlook is almost discouraging. The man on the street cannot be faulted if he feels helpless these days.
Just as infuriating is the suggestion by some quarters that Filipinos should just roll with the punches since the Philippines still has one of the lowest pump prices in the region. Energy Undersecretary Peter Anthony Abaya, for example, noting that this year's increases have been triggered by "genuine market forces," unlike the previous years' which were driven by geopolitical developments, asked the local oil industry and the public to accept these new price levels. President Gloria Macapagal-Arroyo has also said that her administration would hold on to its policy of allowing market forces to dictate the prices of oil, food and other commodities.
Presidential Spokesman Ignacio Bunye sounded more reassuring when he said, "The government is looking at all possible options." The President has given the green light for a committee to review the oil deregulation law. She has ordered the Department of Energy to closely monitor pump prices and she has appealed to the "good sense" of the oil companies. On the other hand, Senate President Frank Drilon has proposed that the government buy back control of Petron Corp., in which it now has a 40-percent stake. But such measures only impress the public as obsolete, impractical or long overdue rather than encouraging. They are clearly shortsighted approaches, focusing on the effect and not on the cause of the problem itself: the country's dependence on imported oil. And yet, it has been government policy, dating back to the Marcos era, to get away from this dependence. But the lip service goes on. Shall we just resign ourselves to this outrageous fortune of escalating high prices until we all drop dead?
Of course, we have serious limitations. Money, for one thing, is scarce, especially with a fiscal crisis threatening. That's why Drilon's proposed buy-back of Petron is not that simple. The review of the deregulation law has yet to take off, and at this point the committee seems to be moving like it had all the time in the world. And since it is part of its functions, we would like to presume that the DOE has been faithfully monitoring petroleum pump prices, although we are beginning to wonder why we seem to be always caught flat-footed by global oil price adjustments.
As to the "good sense" of the oil companies, there is no evidence to suspect that it exists after all these years. As Drilon put it, "They [oil companies] can deny this until they turn blue but no, they cannot convince anymore that there is no cartel."
The government may be doing something about the problem. But we do not see it going in a big way into developing and promoting fuel-saving measures and alternative sources of energy. For example, there are new technologies -- some of them Filipino inventions -- that could drastically reduce fuel consumption by 20 percent, if we go by the testimonies of those using them. Solar energy has proven its vast potentials. But these technologies don't seem to be getting the necessary government support to propel them beyond the pilot stage.
In contrast, Malacañang and Congress exhibited some impressive "creativity" in identifying possible sources of funds should the administration decide to preserve its shares of stock in San Miguel Corp. They have also shown uncharacteristic "political will" in legislating new tax measures. And they have gone with boundless "passion" after the Marcos Swiss deposits, the coco levy fund and, not to forget, the pork barrel.
But will the people ever see the government working half as hard to try to rein in the galloping prices of oil products? As we have pointed out earlier, it is not always the lack of money that prevents us from addressing our problems effectively. Sometimes, it is only lack of imagination.
posted by Dante at 12:00 AM
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