‘Band-aid solution’ to oil price increases slammed

ILOILO City -- ANAKBAYAN-Panay condemned another round of increase in fuel prices yesterday -- P1.50 per liter. It also criticized the government’s fuel subsidy through Executive Order 32 or the so-called “Public Transport Assistance Program” otherwise known as “Pantawid Pasada.” “This band-aid solution does not alleviate the heavy burdens posed by successive oil price hikes to the people, especially the drivers,” said Eric Alip, the new Panay regional spokesperson of ANAKBAYAN. Yesterday’s price hike will only lead to the increases in the prices of basic commodities, utilities and social services, he warned. “A significant portion or P49.5 million of the P450 million budget allotted for the Pantawid Pasada project will only return to the government’s coffers because value-added tax is still imposed on oil products,” added Alip. This program seems to be more interested in addressing the President’s decreasing ratings rather than addressing the real problems of the people, he added. According to Alip, over 70 percent of Filipinos live on less than P104 a day and are mired in extreme poverty while one-third of the labor force is unemployed. “The oil price hikes will pose a heavier burden on the people,” said Alip. Since January, the price of diesel has gone up by as high as P8 per liter while the price of gasoline has increased by over P6. If there is no stop in oil price hikes, ANAKBAYAN foresees an increase in the jeepney fare from the present P7.50 regular fare to P9.50. “The latest OPH will surely affect the prices of rice, vegetables, meat, and other food products as well as electrical and water services,” said Alip. According to the Bangko Sentral ng Pilipinas, the inflation rate increases by 0.10-0.14 percent for every P1 per liter oil price hike. “Moreover, the consequent rate of price increases would be an additional burden to students especially during the start of classes. The cost of living rises along with the rising cost of education and so we expect an increase in the number of dropouts in secondary and tertiary level in the next academic year,” said Alip. The government’s refusal to junk the Oil Deregulation Law and scrap the value-added tax only shows where his government’s loyalty really is – with the big businesses, big landlords, and big oil cartels, he added./PN