NR1214:No to legislating LPG, petroleum price increases

Mula sa Tanggapan ni Anakpawis Rep. Crispin B. Beltran
News Release December 14 , 2004
House of Representatives, South Wing Rm 602
931-6615 Ina Alleco R. Silverio, chief of staff
Email: paggawa@edsamail.com.ph, anakpawis2003@yahoo.com
Celphone number 09213907362
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Solon slams additional taxes and tariff hike in oil prices; saying LPG will
increase by 60 pesos upon implementation of additional costs in petroleum
next year

Anakpawis Representative Crispin Beltran today slammed proposals to impose new
additional costs on the already sky rocketing prices of petroleum products.
Rep. Beltran said that if the proposal is passed and implemented, it will
inevitably be an added burden to the Filipino people specially the poor.

The labor leader turned lawmaker refers to House Bill 3105 which will impose
value added tax on petroleum products and the proposal to add specific tax for
the sale of petroleum finished products. He also criticized Executive Order
No. 336 which will cause a 2% tariff increase in imported crude oil and
finished petroleum products.

"Imposing additional costs on the already sky-high prices of petroleum products
yet proves the Arroyo administration's callousness to the plight of consumers
and public transport drivers. It's unjust and immoral that the executive and
its allies in the congress are coming up with the most infamous and desperate
measures in the effort to raise extra revenues for the bankrupt government at
the expense of the people," he said.

Beltran calculated that these new measures will mean an increase in costs up to
P6 per liter for in gasoline and diesel; and up to P60 per cylinder of
liquefied petroleum gas (LPG).

Meanwhile, Petron admitted in a House Committee on Ways and Means hearing that
these measures the government is undertaking to increase its revenues will be
ultimately passed on to the consuming public. Of which, the transport sector
will be mostly affected.

But Beltran said that such reaction from Petron is expected. He added that for
many decades, the oil cartel has been passing all taxes on to consumers to
continually raise and not just maintain the oil companies' respective
superprofits.

"The approval of the proposed bills that will increase oil prices and the
implementation of EO 336 will not give the Filipinos a new hope for the
Filipinos this coming Christmas. Such implementation will only result to new
oil price hikes this coming new year despite significant decrease in oil prices
in the world market," he ended.

Executive Order No. 336 was signed by President Gloria Macapagal-Arroyo on the
eve of her State of the Nation Address (SONA) last July and will be implemented
starting January 2005. #