MAY 15, 2012 DATE

NR # 2740
REF. NO.

Solon urges govt to cushion the adverse economic effects of the continuing oil price increases
A lawmaker today called for a congressional inquiry to determine the efforts being undertaken by government to cushion the adverse economic effects of a continuing increase in oil prices which has severely affected the welfare of the poor and underprivileged Filipinos. In House Resolution 2279, Rep. Mark Villar (Lone District, Las Pias City), said the House Committee on Economic Affairs should look into the mechanisms the government has adopted to protect the Filipino poor and underprivileged from the series of price increases of oil and other basic commodities. Villar said the government must lay down a plan to cushion the effects of these series of price increases on the economy and the economic well being of every Filipino. Villar said Section 2, Chapter 1 of Republic Act No. 8479 otherwise known as the Downstream Oil Industry Deregulation Act of 1998 provides that it shall be the policy of the State to liberalize and deregulate the downstream oil industry in order to ensure a truly competitive market under a regime of fair prices, adequate and continuous supply of environmentally-clean and high-quality petroleum products. To this end, the State shall promote and encourage the entry of new participants in the downstream oil industry, and introduce adequate measures to ensure the attainment of these goals. It is the responsibility of the State that no injustice and opportunism occurs in a time of crisis which will lead to the further disadvantage of the poor and the underprivileged who are doing their best to cope with their situation, Villar said. Villar said various groups have raised the alarm on the economic implication of the series of price increases in fuel products. According to Villar, a recent protest action by transport groups cited the need to help the drivers and their families to cope with the rise in prices of oil and other basic commodities, sadly this concern is not limited to transport groups alone as the issue of increase in prices of goods cuts across the economic strata affecting every family and every hard earning individual. The continuing tensions in the middle east as well as the prevailing global economic woes is greatly contributing to the increase in oil prices which is being reflected in the consecutive hikes not only in the prices of fuel products but also of basic goods and commodities, Villar said.

MAY 15, 2012 DATE

NR # 2740
REF. NO.

The rising world market prices of oil had pushed the countrys oil import bill by 26% to $12.57 billion in 2011 from $9.96 billion in the previous year, Villar said. Villar cited a report of the Philippine Daily Inquirer which showed that the import cost of crude oil rose by 37% last year to $7.34 billion from the previous years level of $5.36 billion, while the cost of imported finished products increased by 13.6% to $5.223 billion from $4.597 billion. Villar said the same report of the PDI revealed that the increase occurred despite a 7% decline in the volume of oil imports last year to 113 million barrels from 121.4 million barrels in 2010, of the total oil imports in 2011, crude accounted for 59.23% at 66.917 million barrels, while finished products such as unleaded gasoline and liquefied petroleum gas (LPG) accounted for 40.77% at 46.065 million barrels. (30) lvc