The Freeman's editorial about Sen. Roxas

Good day everyone! I'll share to you yesterday's editorial of Cebu's The Freeman newspaper about Senator Mar Roxas call to review the oil firm's books.

Senator Mar Roxas, noting that world oil prices have dropped drastically and are now selling at below $70 per barrel, is demanding an accounting by oil companies operating in the Philippines.

This is because, as Roxas noted, the price cuts being implemented by these oil firms are not in proportion with the levels to which world oil prices have dropped. In other words, while these oil firms are cutting back on their prices, they are not cutting back enough.

Roxas, who is the chairman of the Senate committee on trade and commerce, wants these oil firms to open their books so the public can see if they are not being made suckers by greedy corporate giants.

But Roxas should not stop with a simple demand for transparency. He should initiate a probe of these companies to determine if sanctions are not in order for their making hay out of a critical situation at public expense.

It is bad enough that these oil giants grab all they can, it is worse when they do it with the thought that we cannot see through their machinations. Pretending to give P1 or P2 cutbacks when they can give P5 is corporate con artistry and must not go unpunished.

Certainly, Roxas is in a position to do something about this abusive and oppressive corporate policies. And it is better to find legislative measures to correct the situation than wait for people to reach breaking point and force them to take matters into their own hands.

And while Roxas is at it, maybe he could also try to find out what is taking the LTFRB so long to order a reduction in transport fares when, for the same reason that world oil prices have been going down steadily, transport fares should have also been cut long ago.

Roxas must remember that transport fares were allowed to go up for one reason only — that oil prices were going up. Now that oil prices have gone down, it is wrong for drivers to start invoking other factors such as prices of rice, bread, etc.

Tuesday, November 4, 2008 | posted in doe, ltfrb, mar roxas, oil, philippines | 1 comments [ More ]

Roxas: Immediate relief, not tokenisms, needed

Senator Mar Roxas said the people do not need mere "tokenisms" but real and immediate relief in coping with the continued high prices of petroleum products.

He cited the Department of Energy's announcement to remove the tariff on imported crude oil and refined products – that would supposedly lower pump prices by P0.50 – effective June 1, which the Senator said would not be felt by the public especially with the continued rise in world oil prices.

"How will our drivers and consumers feel that their government is looking out for them, when all they are given is false hope and not immediate relief?" said Roxas, the Chairman of the Committee on Trade and Commerce.

"Our people feel they are being run over by these skyrocketing prices of food, oil and other goods. But instead of rushing them to the hospital, the government treats the problem with band-aid," he said, referring to the tariff reduction.

The Liberal Party President said that if the executive was serious in helping the jeepney and tricycle drivers, the fisherman, or even just the general consumer, the immediate action of suspending the value-added tax (VAT) on oil products must be considered.

"With the rising prices of basic goods like food, oil and electricity, plus the higher costs of transport, a zero tariff on oil is not all that our people need, but also zero VAT," he said.

Roxas stressed that the government should not fear revenue losses as a result of removing the VAT on oil, because the VAT will eventually be collected on other products.

"The government should not be so stingy when it comes to removing the VAT on oil. This is not their money, this is the people's money," he said.

"So far, the executive has not understood that when the VAT on petroleum products is removed, this won't be a complete loss for the government. Why? Because Juan de la Cruz is going to spend his extra savings on other items, which the VAT can be collected from. For example, with one 11-kilo tank of LPG, removing VAT would result in a housewife saving P65. That P65 can then be spent on other items in the grocery or department store to buy other needs, which have VAT on them," he explained.

"If the government is going to use the money for things that won't help us anyway, it would be better for each person to do the spending," he added.

Friday, May 23, 2008 | posted in doe, e-vat, food crisis, mar roxas, oil, pgma, philippines, president | 0 comments [ More ]

Roxas: Four days to go on Petron sale, what's the plan?

Senator Mar Roxas urged the government to consider offers for the purchase of Petron shares while stressing that it has four days left before its "right of first refusal" on the 40% Saudi Aramco stake in Petron Corp. lapses.

"All these offers could have come in earlier had the executive branch been clearer and more transparent on where our strategic interests lie. Until now, we really don't have an energy plan that would indicate how the Petron deal fits in with our oil supply requirements," Roxas pointed out.

He said the government, as represented by the Department of Energy (DOE) and the Philippine National Oil Co. (PNOC), must be mindful that its decision on the Petron stake comes at a time when there is great uncertainty on the supply and price of oil.

"It has four days left, and the government has to immediately tell the public what it plans to do with its option to buy back the 40% stake of Saudi Aramco in Petron so it can re-sell it to a company that has a stake in the country. Our people deserve to know what the government's plan is and why," he said.

"Whatever the government decides, it must be clear to the public that such decision is in line with the national interest, at this time of skyrocketing oil prices," he added.

"My advocacy is that we ought to get an explanation. This is not just shares of stock from one buyer to another seller. This pertains to a strategically crucial product, oil, and to a company that owns 40% market share in the domestic trade of oil products. So clearly, this is not a simple commercial transaction," he stressed.

The Chairman of the Senate Trade Committee said that the government is not helpless in this planned sale of Saudi Aramco of its Petron stake to Ashmore Ltd. In fact, he said that the "right of first refusal" was put in place so that the government could ensure that the 40% stake in Petron would always be "in friendly hands."

"The point is, the government has yet to explain what it plans to do with this option. They may have very good reasons not to exercise this option, but to date we don't know what these are. And if these 'good reasons' don't exist, we ought to instead exercise this right so we can place this key asset in friendly hands," he said.

"I advocate that the government exercise this right on the 40% Petron shares and sell it to another 'strategic investor,' but it does not mean that the government will have to put money out. As reported, officials have admitted that PNOC can assign its first refusal option to another interested party," he added.

By "friendly hands," Roxas was referring to companies that have access to crude oil—such as those from Brunei, the United Arab Emirates, Indonesia and other oil-producing countries—or who otherwise have petroleum operations. "Friendly hands" could also include Filipino firms, or those which have long-term interest in the Philippines.

Friday, May 9, 2008 | posted in ashmore, brunei, doe, indonesia, mar roxas, petron, pgma, philippines, pnoc, president, saudi aramco, united arab emirates | 0 comments [ More ]

Roxas: Gov't stonewall on oil VAT suspension "unjust, oppressive"

With crude oil prices continuing to break records, Senator Mar Roxas renewed his call for the suspension of the value-added tax (VAT) on oil and petroleum products to curb domestic price shocks that have begun to hurt consumers.

"Oras na para i-suspinde ang VAT sa langis, para bigyan ng ginhawa ang mga mamimili sa panahong pataas nang pataas ang presyo ng bilihin (it's time to suspend the VAT on oil to give consumers relief at a time when prices of goods continue to increase)," he said.

"For the government to continue charging a 12% VAT on oil at this time is simply unjust. For the government to continue making the people shoulder what should otherwise be collected from big-time tax evaders and smugglers is simply oppressive," he stressed.

The chairman of the Senate Committee on Trade and Commerce said the world price of crude oil has already broken the $115-a-barrel mark due to increased demand from newly-industrialized countries and diminished production from oil exporters. Furthermore, local pump prices of diesel, gasoline and kerosene have increased seven times already since the start of the year.

"Still, the administration continues to stonewall on this issue, and other similar proposals to remove, suspend or lower VAT on other commodities. It would rather keep its revenues than ensure relief for consumers," he said.

"It only takes political will on the part of the administration to move its allies in the House to pass the proposed suspension of VAT on oil. After all, the people need their money in their pockets more today than the government needs its windfalls," he stressed.

"Any further delay or dilly-dallying from the administration to suspend the VAT on oil will be hard to justify," he stressed.

As per DOE data, the prevailing price of diesel is now at P40.44/L; gasoline at P47.46/L; kerosene at P43.02/L; and LPG at P566.14 per 11-kg tank. The temporary removal of the 12% VAT on oil would result in savings of P4.33 per liter of diesel, P5.09 per liter of gasoline, P4.61 per liter of kerosene and almost P61 per 11-kilogram tank of LPG.

Roxas filed Senate Bill 1962 seeking to suspend the VAT for a period of six months, and a similar bill was filed by Liberal Party stalwart Cavite Rep. Joseph Emilio Abaya in the House. The Senate Ways and Means committee has already held hearings on the Roxas bill but could not undertake any further action because according to the Constitution, all tax measures must emanate from the House.

Tuesday, April 22, 2008 | posted in doe, e-vat, mar roxas, oil, pgma, philippines, president | 0 comments [ More ]