Filipinas: KMU News Release

10.Ago.03    Análisis y Noticias

August 8, 2003

Government price controls useless vs. oil companies
New oil price hikes pose threat to consumers’ livelihood

Militant labor center Kilusang Mayo Uno (KMU) today said that while the government is trying hard to even out the tumultuous political situation resulted by the protest action of dissatisfied young officers last month in Makati, the latest price hikes imposed by new oil players and big oil companies will all the more destabilize and take serious costs on the peoples livelihood as well as the entire domestic economy.

KMU said they will launch protests against the recent oil price hikes and will hold the government accountable for the latest price adjustments. “Attempts to appease widespread unrest and dissatisfaction over the incumbent presidency will be futile as new price hikes will definitely elicit massive protest from the impoverished ranks of workers, urban poor and other affected sectors. Minimum wages are perpetually pegged to the floor at P250 a day. How does the government and the greedy oil companies expect ordinary wage earners and workers to settle with the latest price hikes? Our current wages could not even make do with the increasing daily cost of living now valued at P546 for a family of six. Our wages are not even enough to pay for excessive electricity rates collected by Meralco.”

Oil prices went up today by 43 centavos per liter of diesel and 65 centavos per liter of gasoline. New oil players Totalelfina and Unioil took the lead in increasing pump prices yesterday while Shell and Petron followed suit this morning. The last oil price adjustment took place last May.

KMU Secretary General Joel Maglunsod said the price controls imposed by the Department of Trade and Industry (DTI) following the declaration of state of rebellion will be useless as the recent oil price increase will automatically have an effect on the prices of basic commodities and services. “The new oil price hikes will result to life-threatening effects on the livelihood of consumers.”

Maglunsod said that workers are not capable of absorbing the latest price adjustments as they are still financially crippled by previous price hikes and the prolonged absence of any wage increase.

“Mrs. Arroyo’s crisis management capacity will be put to test once more as workers demand her to stop the latest and upcoming oil price hikes as well as consequential increase in the prices of other products. She must address the lingering economic catastrophe brought about by her own policies in the same manner that she attends to the growing political instability caused by her unpopular leadership.”

The labor leader said that President Arroyo must expect for new rounds of protests against her leadership as she failed to comprehensively address the people’s woes. “She must remember very well that the peoples economic grievances should not be taken for granted nor overlooked. We assume that she already learned this crucial lesson from the legitimate issues raised by the Magdalo group. The government must not wait for another People Power or uprising from various sectors before they address important economic issues affecting the people.”