http://newsinfo.inquirer.net/inquirerheadlines/nation/view_article.php?article_id=147738

By Michael Lim Ubac, Tina Santos
Philippine Daily Inquirer
First Posted 05:21am (Mla time) 07/11/2008

MANILA, Philippines—With fuel prices hitting the roof, President Gloria Macapagal-Arroyo has resorted to measures ostensibly aimed at preventing food and fuel riots from rocking the capital and key cities across the country.

Under Executive Order No. 731, the President tapped the Intelligence Service of the Armed Forces of the Philippines (ISAFP) to monitor the “political and security developments” triggered by the weekly oil price increases.

Ms Arroyo issued the EO on June 7, about three weeks after crude oil soared to a new record high above $127 a barrel on the New York Mercantile Exchange.

Copies of the EO were released only Thursday, when hundreds of students from different universities in Manila walked out of their classes to show their disgust over government’s failure to stop the series of oil price increases.

(Latest data from the Department of Energy showed that the regional benchmark Dubai crude—the one being followed by the country—surged to a July average of $138.48 a barrel.)

Intelligence assessment

The EO is titled “Activating and Reorganizing the Energy Operations Board (created in 1990) into the Energy Contingency Task Force Under the National Food and Energy Council.”

Section 4 (j) of the EO said ISAFP “shall issue timely intelligence assessments of political and security developments related to the oil price issue and alert government offices on the same. It shall provide advice on matters affecting national security.”

Tide of bitterness

On Tuesday, members of the Catholic Bishops’ Conference of the Philippines (CBCP) warned the Arroyo administration that a tide of bitterness and unrest was rising among the poor that can lead to anger.

The bishops said the government should address the problem swiftly because the poor, who are the hardest hit by the soaring cost of living, were becoming convinced that authorities were turning a blind eye to their plight.

“If the people are really angry and cannot take their hardships anymore, they can be easily incited by anyone who wants to rule. I hope we can avoid that,” Bishop Broderick Pabillo said at a press conference.

The bishops have called for a review of the 12-percent valued-added tax (VAT) and Oil Deregulation Law, which the CBCP says are pushing up prices of goods and services further and are gravely affecting the poor.

Just a ploy

Three days after the CBCP made the call, oil firms Thursday cut the price of gasoline by P1 a liter, a move that transport group said was just a ploy to prevent a public outcry amid rising pump prices.

Since January, gasoline, diesel and kerosene prices had risen 18 times for a total of P18 a liter for gasoline and P19.50 a liter for diesel and kerosene. Premium unleaded gasoline now costs between P58.75 and P60.98 a liter.

The P1-a-liter reduction in gasoline prices is not the start of a rollback in fuel prices, at least not if international prices remain high and the dollar strengthens against the peso, according to Energy Secretary Angelo Reyes.

Reyes called on groups criticizing the price cut to just welcome it as a positive development.

“The oil companies have already reduced their prices and yet they still complain. We don’t know what will please them anymore,” he said.

Operations head

In the EO, Ms Arroyo directed that the primary responsibilities of the departments mentioned in Section 4 “shall extend, as applicable, down to the regional, sub-regional levels, including the provincial and city levels.”

“The task force may organize task groups at various levels. Local government officials may be invited to join the task groups if they so desire,” the President said, adding that “the task force may call upon other government departments and agencies for assistance and support for the implementation of the objectives of this EO.”

The executive secretary and energy secretary will serve as head and operations officer, respectively, of the task force, which has the following as members: secretaries of trade, budget, science and social welfare, director general of the National Economic and Development Authority, chair of the Commission on Higher Education, director general of the Philippine Information Agency and commander of the ISAFP.

The task force is responsible for formulating plans and policies and ensuring their implementation “to address the impact of the rising cost of oil on the majority of the people.”

In Manila, at least 600 students from schools like the University of the Philippines, Polytechnic University of the Philippines and Adamson University called for the suspension of the VAT on oil products and the repeal of the oil deregulation law.

The protesters gathered on Taft Avenue in the morning before they marched toward Recto Avenue in the afternoon in an attempt to set foot on the Don Chino Roces (formerly Mendiola) Bridge.

They, however, were blocked by the Manila Police District antiriot policemen at the corner of Morayta Street and Recto Avenue.

The students were joined by members of the National Union of Students of the Philippines, College Editors Guild of the Philippines, Kabataang Pinoy, Student Christian Movement, Liga ng Kabataang Moro, Youth Revolt, Anakbayan and League of Filipino Students.

Drastic action

Anton Dulce, Anakbayan national vice chair and UP student, said the urgency of the situation called for drastic moves.

“We in UP believe that by walking out of our classes, we are ensuring the long-term provision of all our basic needs. Today, we take our classes to the streets,” Dulce said.

“Besides, what is one day of walking out of class, as compared to a year of hardship under crushing costs of basic needs like education and food?” he asked.

Nation suffering

Jose Ignacio Tenorio, chair of UP Manila’s College of Arts and Sciences Student Council, said students from the campus’ seven colleges joined the protest.

“The Iskolar ng Bayan wants to show the entire nation that we are not just against the anti-student policies on education but also the anti-citizen policies of the Arroyo administration that have been causing the nation to suffer,” said Tenorio.

Terry Ridon, former UP student regent and Youth Revolt spokesperson, said the government had done nothing to intervene on the citizens’ behalf.

“Therefore it is the duty of students, along with other sectors of society, to demand the immediate revision of flawed government policies that caused these unabated [increases] in prices,” he said.

Ridon said the Arroyo administration was more interested in raking in VAT revenues for corruption and debt servicing instead of giving immediate economic relief to the majority of distressed people.

Close ranks

Secretary Jesus Dureza issued Thursday a statement “on how the Palace views today’s difficulties.”

“Filipinos, at this time of difficulties, usually close ranks and help collectively, especially when we all know that this is triggered by global events like the meteoric rise of fuel prices that we cannot do much about except to mitigate until the economic storm blows over,” Dureza said.

At a press briefing earlier this week, Socioeconomic Planning Secretary Augusto Santos expressed confidence that consumers would not resort to violence to air their grievances. With a report from Abigail L. Ho

10th July 2008 | Filed under: In The News | Click here to follow any responses to this entry: RSS 2.0 feed