CPP denounces successive hefty oil price increases

Information Bureau
Communist Party of the Philippines
August 23, 2012

The Communist Party of the Philippines (CPP) today denounced the successive increases in oil prices effected this week by the big oil companies calling this "a cruel imposition on the people greatly burdened by the spiralling prices of food, medicine and basic commodities, low wages and unemployment."

The hefty increases in oil prices today follow the similarly large increase in oil prices effected last Monday resulting in a total increase of up to P3 per liter of diesel, gasoline and other petroluem products. "This two-stage bigtime increase in oil prices reveal the profit-crazed foreign big capitalists who are callous to the grave socio-economic conditions of the people."

"The double price increase this week also expose the hypocrisy of the oil companies with which they announced a suspension of oil price increases last week, purportedly in sympathy to the victims of the heavy rains and floods," added the CPP. The CPP also pointed out last August 7, amidst the heavy rains and right before the massive floods, oil companies also increased their prices by nearly P1 per liter. Earlier, prices of cooking gas was increased by as much as P7 per kilogram.

"The recent price increases has effectively offset the series of rollbacks effected in the previous months," said the CPP. "Despite the sharp fall in the prices of international crude, decreases in domestic fuel prices were carried out by the oil companies in slow trickles, calculated as such in order to pocket greater profits."

The CPP supports the demand of the Filipino people to repeal the 1997 Oil Deregulatioin Law. "Foreign oil companies that dominate the local oil distribution network take advantage of the oil deregulation law to jack up the retail prices of petroleum products in accordance with their target profits, in complete disregard of the social conditions of the people and the state of the Philippine economy."

"The CPP denounces the Aquino regime for continuously ignoring the widespread clamor to repeal the deregulation law, to put the oil industry under state regulation and control oil prices," declared the CPP. "Furthermore, the Aquino regime fleeces on the people with the imposition of a 12% VAT on the retail prices of oil products that increase government revenues with every increase effected by the oil companies."

"The Filipino people are oppressed two times over under the oil deregulation law and the 12% VAT on oil prices," said the CPP. "Their demand for a rollback in oil prices, the removal of the VAT and the repeal of the oil deregulation law are fully justified."