Oil Price + 1.50/liter by weekend. A week ago, I had an entry about oil companies loving 1.50/liter increase. They are about to prove me right. There’s just no stopping the oil price hike. On the other hand, lifting of the 12% VAT on oil price seems to be an impossible dream. The administration is very vocal in their resistance of the said action. Plus, I saw the president boasting over the media the P400 million earnings from oil tax. ACCORDING TO HER, this was utilized for reforms, subsidies, other funds.

The cost of rice is extra high here in Mindanao, particularly in Davao City. No one could clearly explain why. PryceGas LPG is at P677 while Shellane LPG at P690 (as of June 2, Buhangin, Davao City).

BAND AID SOLUTIONS

I was dismayed looking at the news over the past two weeks. To name some, NO UNIFORM POLICY, P500 electricity bill subsidy.

Oil Price Hike

Looks like oil companies are loving the P1.50 increase in oil price. It’s in the news that by weekend, a new P1.50 increase is to be implemented by oil companies. That would bring the prices (in Davao city) to ~P55/liter for gas and diesel at ~P48/liter. Aaaw. Not to mention, the rice sky rocketed to 40s.. I was surprised when I got back from Surigao del Sur that high quality rice is now at P45-48/kilo.

As always, the villain is “presyo ng krudo sa pandaigdigang pamilihan,” the price of oil in the world market. The price of gasoline is just too much for Juan dela Cruz. What’s more alarming is that the oil companies seem to enjoy increasing gas price by more than a peso. Before they would increase it at most by 50 cents. But gone are those days.

The government should really act on this. I am very sure oil price will continue to rise. It’s inevitable because we have no control over the world market. What I wish the government would act on is how to compensate or help the Filipinos cope with this crisis. Removing the 12% VAT in gasoline would be a very big help. I heard from Senator Mar Roxas that the government has earned much than projected from the oil taxes. That’s why he wants the government to lift the VAT to at least decrease the price of gasoline. I am not a fan of a politician but I highly respect Mr. Roxas for citing and stating to the public this significant matter.

What a Transport Strike Can Do?

Monday, 12th of May 2008, Transport groups lead by PISTON launched a nationwide transport strike. Ironically, the strike was largely unfelt in Metro Manila considering the transport groups in Manila were the promoters of the said move. In the provinces however, the transport strike was felt. Here in Davao City, I would say the paralization rate was at around 75%. Looking at the news on TV, other provinces also had the same situation.

Obviously, drivers went on a rampage because of the rocketing of fuel price. Two times in a row, oil price increased by a peso. Diesel plays around 42-44 pesos per liter. Ouch! Unleaded Gas is at 47-52 pesos per liter. Ouch! Ouch! And so, transport groups ended up for a transport strike. But what do they get? Or what did every Filipino get from a nationwide transport strike?