Press Release
December 5, 2008

ROXAS: UNLEADED GASOLINE SHOULD BE SLASHED BY P10/L
INSISTS DIESEL SHOULD BE SOLD AT P25/L AT MOST

Liberal President Senator Mar Roxas today said prices of unleaded gasoline sold locally should be cut by as much as P10 per liter parallel to the rate of decline in the cost of crude oil in the international market.

The Chairman of the Senate Committee on Trade and Commerce also reiterated that the price of diesel sold in gas stations should be at P25 per liter at most.

"Naiinis ako, kasi pinagsasamantalahan ang taumbayan eh. Itong mga oil companies na ito, mga linta ang mga ito na sinisipsip ang mga dugo natin. Bumagsak na ang presyo ng krudo sa international market, pero ang bagal-bagal naman nilang ibaba ang presyo rito. (I am irked with the way they are taking advantage of our people. These firms are leeches sucking the blood of our people. The price of crude oil has gone down in the international market but they are so slow in doing the same)," he said.

"Gumawa din ako ng aritmetik sa unleaded gasoline. Ngayon, bumaba ito sa P35 per liter. Sa kalkulasyon ko, P10 pa ang kailangan nilang ibaba (I made some calculations on the cost of unleaded gasoline. It is now sold at P35 per liter. In my calculation, it should be cut by P10 more)," he added.

By his own calculation, the Ilonggo senator said the cost of unleaded gasoline should range from P22.40/L to P24.53/L. He explained that Dubai crude averaged $49.84/bbl in November (as of Nov. 28), dropping 62% from the $131/bbl in July. When converted according to the respective peso-dollar rates (P49.18 to $1 average as of Nov. 28), this means a 58.4% drop to P15.42/L.

The price of unleaded gasoline, on the other hand, went down by only 39% during the same time period, from P58.96 in July to P35.96 in November. If local oil companies follow the sliding cost of crude oil in the world market, then unleaded gasoline should be sold for as low as P22.40/L to P24.53/L.

Dubai Crude Oil Unleaded
  US$/bbl PhP/$ PhP/L PhP/L
July 2008 (PEAK)  $131 44.94 37.10 58.96
Present  $49.84
(Ave. as of Nov. 28)
49.18
(Ave. as of Nov. 28)
 15.42 35.96
% change in price 62%   58.4% 39%

Roxas said if the Department of Energy does its job and compels the country's three biggest oil companies to show their financial books, then it would discover that these firms have been raking in big money and are taking advantage of the consumers.

He urged the DOE to stop tolerating the oil companies' indifference to calls for them to bare their financial records.

"Ang punto dito eh hayaan ng DOE na depensahan ng mga kumpanya ang kanilang pricing. Bakit ang DOE pa ang dumedepensa sa kanila? Ang DOE, supposed to be, iyan ang magtatanggol sa atin, iyan ang magbabantay ng interes natin (The DOE should stop defending the oil companies' pricing. Why is it defending it anyway? The DOE should be protecting us. Its role is to protect the interest of the people)," he stressed.

"Bakit hindi hinahabol ng DoE ang mga kumpanyang ito? Bakit hindi kinukulit ng DoE itong mga oil companies na ito? Bakit kailangang ang Senado pa ang gagawa nito? Iyon ang trabaho ng DoE, bantayan ang interes ng ating taong bayan. Kaya natin kinakalampag ang DoE dahilan sa hindi nila ginagawa ang trabaho nila.. (Why is the DOE not running after these companies? Does the Senate really have to do the job of the DOE? That's why we have been prodding the DoE because it is not doing its job properly)," he added.

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