Press Release
November 19, 2007

KIKO DEMANDS TRANSPARENCY FROM OIL
FIRMS AMID SOARING OIL PRICES; CALLS FOR
MULTI-SECTOR CONSULTATIONS TO DISCUSS ISSUE

With both major and independent oil players increasing prices by P1 per liter on gasoline and 50 centavos on diesel over the weekend, Senate Majority Leader and Independent senator Kiko Pangilinan today challenged oil firms to be transparent and explain the severe increase on their products, and called on the public to consolidate efforts to mitigate the looming power crisis.

"As in every business, oil firms have a responsibility to their consumers. The public deserves an explanation as to why the prices of oil are skyrocketing. Taas ng taas ang presyo ng langis, pero hindi naman nila sa atin sinasabi kung kung kailan nila inaangkat ang mga ito. Talaga bang mataas na ang presyo sa pandaigdigang merkado noong bilhin nila ang langis? Paano natin matitiyak na hindi nila nilalamangan ang publiko?" Kiko asked.

Department of Energy (DOE) monitoring reports showed that the average price of unprocessed crude in Dubai already reached US$86.03 per barrel versus the US$77.12 per barrel price in October. Gasoline as of November is priced at US$99.35 per barrel or an increase of more US$10 per barrel from US$88.71 last month. On the other hand, diesel already surged to US$108.5 per barrel as compared to US$97.35 last month. Average prices of gasoline is now placed at P43.45 per liter, P38.99 per liter for kerosene, P37.45 for diesel, and liquefied petroleum gas already reached P594 per 11 kilogram cylinder.

Energy secretary Angelo Reyes earlier revealed that government is deciding on whether to impose tariff reduction, which will set the government back by some P450 million.

"Implementing tariff cuts is only a short-term solution to the problem, if it can even be called that. If we are to find a lasting answer to this issue, then we must really channel our attention to the exploration of sustainable and renewable sources of energy right inside our country. This will ensure the provision of our country's energy requirements and prevent us from being hostage to the rise and fall of prices in the international market," Kiko said.

"The Philippines has a wealth of untapped natural resources that we can harness for power. An example is the deep water gas to power plants of the Malampaya project. Venturing into natural gas will ensure a steady supply of clean and environment-friendly fuel, as well as enable the entire country's power generation requirements. The province of Batanes has also started exploring the potential of wind energy to produce power, and many areas in our country have also explored the potential of hydrothermal energy," Kiko added.

"We are hearing of planned transport strikes, and other protests which will of course affect the public. We thus urge all stakeholders to come together and conduct consultations as to how we can all mitigate this looming power crisis. We all have a share in this issue. I wouldn't mind taking the MRT again, as I have done in my first two years in the Senate, if only to set an example," Kiko said.

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