Press Release
October 3, 2008

Kiko to Gov't, oil companies: 'Spell out how reimposed oil tariff
will affect consumers!'

Senate Majority Leader and independent senator Kiko Pangilinan today asked government and oil companies to assure consumers that they will not bear brunt of the re-imposed oil tariff.

"Oil companies have said they are still computing how much it would cost them. Their silence on this matter is certainly a cause for concern. I wouldn't be surprised if they use this as an excuse to again declare a price increase. This is what the government should prevent. It doesn't make sense for pump prices to increase again while the rest of the world enjoys the steady decline of crude value. Hindi naman ata tama na ang taumbayan na naman ang magbabayad ng buwis. That's on top of 12% value-added tax automatically charged by gasoline stations," noted Kiko.

International prices again plunged yesterday due to fears of a financial crisis. Such resulted in a considerable decrease of US oil from nearly $100 per barrel to $93.97. Malacañang immediately announced that it would review oil tariff guidelines based on Executive Order 691 issued last January. It was drafted to soften the effects of the escalating crude price in the international market. Rules imposed commensurate tax reductions depending on specific price of crude per barrel. Finance Department Secretary Margarito Teves said that the review would consider the welfare of both the public and the government.

"This is not a time for vague statements. Government officials and oil companies must spell out exactly how consumers will be affected by the re-imposed oil tariff. Otherwise, people are left to speculate if they should look forward to financial relief or prepare for increasing cost of goods and services," Kiko emphasized.

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