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News Release
March 15, 2012
Reference: Bayan Muna Rep. Teddy Casiño, 09209035683
“While jeepney drivers lose P96/day, oil
companies rake in P147 M/day from overpricing!”- Casiño
Bayan Muna Rep. Teddy Casiño today revealed that oil companies rake in
approximately P147 million every day from overpricing the local pump price
of diesel alone. Almost 78% of this amount will go to the four biggest oil
companies in the country (Petron – P55 M daily extra profits from
overpriced diesel; Shell, P38 M; Chevron, P15 M; and Total, P8 M).
“If we are to extrapolate the monthly earnings of oil companies on their
overpriced diesel then it would amount to P4,410,000,000 or approximately
P4.5 billion, a very huge amount that can be used by drivers to buy more
food for their families. The daily income of jeepney drivers is eroded by
P96 per oil price hikes this year. Their estimated daily consumption of
diesel is P1,443, while P1,200 is the total amount loaded in a Pantawid
Pasada card. How cruel can the government get?” asked Casiño.
“Aside from this the government of is collecting a huge windfall revenue
from additional VAT on oil at the expense of the public
interest."Considering that there is a P1 billion additional VAT revenue
for every $1 increase in Dubai crude, there is already a P4 billion VAT
windfall for the first quarter of the year alone. Assuming that there is
no huge change in the volume of consumption and the level of price for the
rest of the year, we can say that the projected windfall VAT revenues for
2012 is P26 billion," added the progressive solon.
Casiño based his estimates on the February 2012 Dubai crude average of
$116/bbl (IMF commodity data) and using $90/bbl BESF 2012 programmed Dubai
cost.
"Sobrang laki pala talaga ang nakukuha ng pamahalaan dito sa VAT kaya ayaw
ibigay sa mamamayan. Pero nakakalula na talaga ang kita ng mga kumpanya ng
langis at ng gobyerno at dapat naman nilang isipin ang interes ng mas
nakararami. Kumbaga nga e “they should moderate their greed,” said the
progressive solon.
“The Aquino government should forego this gigantic windfall, which is
gained in exchange for the suffering of the people. Consumers need
immediate and concrete relief, and the president should listen. The
estimated immediate reduction in the pump price of diesel if the VAT on
oil is removed is almost P6 per liter; almost P7 per liter for gasoline;
and as much as P110 per 11-kg tank for LPG.
“Again we demand that marathon hearings should be done to fast track House
Bill 2719 to scrap the VAT from oil products and to fast track House Bill
4355 to again regulate the oil industry,” ended Casiño. # # #
-------------------------
News Release
March 14, 2012
Reference: Bayan Muna Rep. Teddy Casiño, 09209035683
Huge P26B windfall tax from VAT on oil is
unjust and oppressive - Casiño
Bayan Muna Rep. Teddy Casiño today said that the projected P26B windfall
revenues from the VAT on oil for 2012 is "an unjust and oppressive burden
on the people that has no place in a government that professes to be for
the poor."
At a forum titled "High Oil Orices: Seeking Solutions" held at the House
of Representatives, Casiño accused the government of raking in billions of
additional VAT on oil at the expense of the public interest. "Considering
that there is a P1 billion additional VAT revenue for every $1 increase in
Dubai crude, there is already a P4 billion VAT windfall for the first
quarter of the year alone. Assuming that there is no huge change in the
volume of consumption and the level of price for the rest of the year, we
can say that the projected windfall VAT revenues for 2012 is P26 billion."
Casiño based his estimates on the February 2012 Dubai crude average of
$116/bbl (IMF commodity data) and using $90/bbl BESF 2012 programmed Dubai
cost.
"Sobrang laki pala talaga ang nakukuha ng pamahalaan dito sa VAT kaya ayaw
ibigay sa mamamayan,” said the progressive solon.
He said the rationale for imposing the VAT on oil seven years ago does not
hold true anymore. "The VAT was increased to 12% and expanded to include
oil, power and basic commodities in 2005 as a response to the fiscal
crisis of 2004. Now seven years have passed and we are being told that the
economy is doing good, gross international reserves are at historic levels
and the public debt is well managed. Therefore there is no more basis for
such a high VAT rate and immediate relief can be given to the people even
on just the VAT on oil," said the lawmaker.
He said seven years after increasing and expanding the VAT, it is time to
give the public a break.
“The Aquino government should forego this gigantic windfall, which is
gained in exchange for the suffering of the people. Consumers need
immediate and concrete relief, and the president should listen. The
estimated immediate reduction in the pump price of diesel if the VAT on
oil is removed is almost P6 per liter; almost P7 per liter for gasoline;
and as much as P110 per 11-kg tank for LPG.
“Again we demand that marathon hearings should be done to fast track House
Bill 2719 to scrap the VAT from oil products and to fast track House Bill
4355 to ag2ain regulate the oil industry,” ended Casiño. # # #
----------------------------------------------------
NEWS RELEASE
March 14, 2012
Reference: ACT Teachers Party-List Rep. Antonio L. Tinio (0920-922-0817)
Legislators and Organizations Attend Forum on
Oil Price Hikes
A forum on the issue of the oil deregulation law and oil price hikes
entitled “HIGH OIL PRICES: SEEKING SOLUTIONS, A People’s-Legislators’
Forum was held at the House of Representatives. The said forum was
attended by Rep. Antonio Tinio of ACT Teachers Partylist and several
progressive parties and members of the congress to discuss the surging
prices of oil and petroleum.
As part of the forum, Mr. Renato Reyes of Bayan discussed global oil
monopoly and the deregulated Philippines oil industry. He discussed how
foreign monopoly and the oil cartel dictate the price of oil and other
petroleum products. The Oil Deregulation Law allows big companies of oil
to set prices that are very far from their actual production costs.
Mr. Sonny Africa of IBON Foundation and Dr. Giovanni Tapang of AGHAM gave
a talk on estimating overpricing in petroleum products. Their talk
revealed that oil companies gain P9 (nine pesos) per liter for the
overpricing of oil and petroleum products. This staggering amount of
profit creates an impression that there is no reason for oil price hikes.
The House Bill 4355 which is the immediate alternative to oil deregulation
was highlighted by Rep. Teddy Casino. He stressed that the government must
scrap the oil deregulation law and seek other ways to control the price of
oil. Rep. Casino points out that the 12% Value Added Tax to the price of
oil must be totally removed. Instead of being dependent on foreign oil
companies, the government must nationalize our oil industry.
The forum was attended by other legislators and members of the house.
Kilusang Magbubukid ng Pilipinas, Kilusang Mayo Uno, Alliance of Concerned
Truck Operators (ACTO), Gabriela Women’s Party, Minority Leader Danilo
Suarez, Caritas Manila and Rep. Mitos Magsaysay participated in an open
forum for the sharing on filed bills and resolutions on oil.
There are a total of 14 bills that range from the review, amendment and
the repeal of the Oil Deregulation Law. In addition to this, there are 3
more bills that call for either the reduction or the complete removal of
the Value Added Tax on oil.
Rep. Antonio Tinio of ACT Teachers Partylist says that these bills have
been pending for 1 ½ years. Filed under the Committee on Energy of the
House of Representatives headed by Rep. Henedina Abad, the bills remain
stagnant. “We strongly urge the Committee on Energy and Rep. Henedina Abad
to schedule hearings for the bills related to the oil deregulation law and
the VAT on the price of oil. Now that our people continue to suffer from
the repercussions of the oil price hikes, the discussion of these bills
must be our priority as representatives of the people,” Rep. Tinio notes.
“As there are still no laws on the regulation of price of oil, we support
the peoples’ call for the junking of the Oil Deregulation Law through a
National Day of Protest against oil price hikes,” he adds.
The program was ended with a challenge from Rep. Emi de Jesus of Gabriela
Women’s Party. Rep. de Jesus encouraged the people to join in the March 15
protest action against high oil prices. She stressed the need to
strengthen the people’s fight for their national democratic rights. ###
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KABATAAN PARTY-LIST
Office of Rep. Raymond V. Palatino
North Wing Room 419, House of Representatives, Batasan Complex, Quezon
City
Email: cong.mongpalatino@gmail.com Telefax: (+632) 931-5504, Trunkline:
(+632) 931500 loc 7378
Headquarters: 118-B Scout Rallos Extn, Brgy. Sacred Heart, Quezon City
Telefax: 352-1054
Press Release:
March 15, 2012
Reference:
Rep. Raymond “Mong” Palatino, Kabataan Party-list, 0908-5927099 /
0922-8369693
Youth and students bear the brunt of oil
price hikes
Led by the Kabataan Party-list, thousands of Youth and students held
simultaneous protest actions, noise barrages and walk-outs in different
communities and schools nationwide as they join the People’s Protest (Protestang
Bayan) against Oil Overpricing.
According to Kabataan Party-list Rep. Raymond Palatino “It seems like
President Aquino is sleeping on the job. With the unabated increase in oil
prices, the President hasn’t done anything to protect the welfare of the
people who are enduring the blow of oil price hikes.”
“The claim of the Aquino government that it is helpless over oil price
hike is a sorry admittance of its impotence. It should relinquish its
mandated power if that’s the case,” added Palatino.
Number of out-of-school youth to rise due to oil price hikes
“All these price hikes coincide at a time when students and parents are
looking for means to pay for outstanding balance in tuition fees; and
schools also propose for more tuition and other fee increases. Truly this
is already an economic assault on an already embattled citizenry grappling
with unemployment and poverty,” Rep. Palatino added.
Outside the four walls of our classroom, the Filipinos continue to bear
the burden of unprecedented hikes in oil, utilities, basic commodities,
and even services. The prices of goods continue to rise, while salaries
are at an all-time low.
“To send the children to school or to provide food on the table? Filipino
families in dire living conditions are always compelled to choose which to
prioritize. In the end, the education of the youth is being left behind”,
said the youth solon.
The daily cost of living now stands at P917 in Metro Manila. Meanwhile,
the minimum wage is pegged at P424 a day. “Right now, an average of
P25,000 is needed to enroll a student in a semester. With a minimum wage
of P424, workers have to save the equivalent of at least 60 days’ salaries
to pay for their child’s tuition for one semester.
The recently approved and the impending hikes will lead to more students
dropping out of school, since aside from tuition, daily expenses in
schools such as transportation and food, continue to rise, while the wages
of workers are not even enough to cope up with the daily needs of the
family," added Palatino.
According to the Commission on Higher Education, 80% of high school
graduates don’t make it up to college while 40% of enrolled freshmen are
not able to continue to second year. In the basic education level, for 100
students who entered Grade 1, only 14 students will be able to graduate.
Remove Vat from oil
“If the president has the will to do so, there are numerous measures that
he can do to stop oil price hike,” said Rep. Palatino.
Removal of VAT on petroleum products and other basic consumer goods is a
viable and tangible means to provide immediate economic relief to a public
burdened by high prices. Palatino also said that the Aquino government
should push for legislative measures to repeal the Oil Deregulation Law (R.A.
8479). ###
-----------------------------------------
Press Release
March 15, 2012
REFERENCE: Vencer Crisostomo, Anakbayan national chairperson, 09174416739
/ 09224290258
Youth group hits gov't overreaction to protests;
says PNoy's "Task Force Praning" responded with false rumors and threats
Youth group Anakbayan said today that the Aquino government has "again,
become 'praning'" and has "overacted" in its response to the protests
against oil price hikes today.
"May overpricing na, may overacting government pa. Instead of heeding the
call to regulate oil prices, the government responded with chismis, rumors
and threats," said Anakbayan national chairperson Vencer Crisostomo.
"Transport groups and organizations have repeatedly said that today's
protests will not include a transport strike. It was Noynoy's Task Force
Praning and Chismis Operations which declared the transport strike to try
to undermine protests by portraying it as something it is not," he said.
Crisostomo said they are worried that these rumors might be used as
pretext to use force against protesters and to harass groups joining the
activity.
"The Aquino government stop its terrorism and showbiz acting. It should
instead respond by immediately stopping oil price hikes, lifting the VAT
on oil and scrapping the oil deregulation law," he said.
More than 100 youth groups have pledged to participate in today's protests
which will include campus walkouts in University of the Philippines
Diliman and Manila, Polytechnic University of the Philippines, and the
university belt.
Amidst MMDA threats that they will arrest protesters who will do
"planking" protests, the youth groups also introduced a new form of
protest which they called "Noynoying."
"Noynoying is the new planking: uupo lang walang gagawin kundi papogi at
tamad tamaran," he said.
Crisostomo said Noynoying will be done by groups of youth in public
places, where they will abruptly sit down and act lazy and will imitate
the President's trademark vacant stare.
Anakbayan said they are preparing for more protests in the next few weeks
against oil price hikes and the Aquino government's "connivance" with the
oil cartel. ###
--
Anakbayan Public Information Committee
Contact us at: anakbayan.media@gmail.com / +639175197758
Visit the Online Campaign center @ anakbayan.org
"Only through militant struggle can the best in the youth emerge"
-------------------------------------------------------------------
March 15 2012
REFERENCE: Vencer Crisostomo, Anakbayan national chairperson, 09174416739
/ 09224290258
100+ youth and student groups join nationwide
protest vs. oil overpricing, introduce ‘Noynoying’ as new form of protest
vs. weekly oil price hikes
More than a hundred student councils and publications, campus and youth
organizations, and community-based groups will join today’s nationwide
‘Protestang Bayan’ (or People’s Protest) against the overpricing of
petroleum products both in local and international markets.
Led by the youth group Anakbayan, the organizations under the KKK, or
Kilos Na Kontra Kartel at Overpricing sa Langis, are also up in arms
against the continued inaction of President Benigno ‘Noynoy’ Aquino III
regarding the host of proposals meant to curb the weekly oil price hikes
so far in 2012.
“For the nth time, we remind the Aquino administration that there are
dozens of bills gathering dust in the House of Representatives which aim
to address the problem of oil price hikes: from removing the Value Added
Tax (VAT) on petroleum products, to repealing the Oil Deregulation Law, to
nationalizing our oil and energy industry. Now Noynoy cannot ‘deny lang’
and say ‘I was not informed’” said Vencer Crisostomo, national chairperson
of Anakbayan.
Students from the University of the Philippines Diliman and Manila, as
well as the Polytechnic University of the Philippines, will hold
'lunch-time protests' within their campuses. They will afterwards join
workers, teachers, and government employees in several designated 'protest
centers': Philcoa in Quezon City; Stop and Shop, Sta. Mesa, and Anda
Circle, Taft Avenue, in Manila.
While the MMDA has said it will arrest protesters who will 'plank' on
roads today, youth protesters will introduce a new form of protest: 'Noynoying'.
A parody of President Noynoy Aquino's inaction in regards to oil
overpricing, students will instead sit down in the middle of certain major
roads in Metro Manila while adopting the president's trademark vacant
stare.
Meanwhile, Anakbayan dismissed Palace claims that removing the Value Added
Tax (VAT) on petroleum products, one of the proposals to provide immediate
relief to consumers, will affect social services.
"Even with the VAT, the Aquino administration has repeatedly slashed the
budget of State Universities and Colleges (SUCs), health care, and other
social services" said Crisostomo.
In the past two years, Anakbayan and other youth and student groups have
launched 'campus strikes' and massive rallies against budget cuts to SUCs
and other social services yearly under Aquino's first two years.
"It is disgusting to hear the Aquino administration claim concern over the
state of social services when their attitude several months ago was 'let
the budget cuts be'" said the youth leader. ###
--
Anakbayan Public Information Committee
Contact us at: anakbayan.media@gmail.com / +639175197758
Visit the Online Campaign center @ anakbayan.org
"Only through militant struggle can the best in the youth emerge"
--------------------------------------------------------
PRESS RELEASE
March 15,2012
Youth orgs, students engage in ‘people’s
protest’ against oil price hikes
Students and youth organizations walked out of their classes today as a
form of engagement in the people’s protest against unhampered oil price
hikes.
The youth, with workers, women and transport groups, gathered at several
protest centers in Metro Manila and staged a program against “monopoly
pricing” of petroleum products. The “people’s protest” is part of the
“national day of action against oil price hikes.”
Protest centers were set up in Philcoa, Sta.Mesa, Divisoria and other
areas. Transport groups, led by Piston, also launched a “transport
caravan.”
“This is a show of force against the seemingly absolute freedom of the Big
Three companies to increase oil prices whenever they want,” said Vencer
Crisostomo, national chairperson of Anakbayan, comprehensive national
democratic organization of youth. “The people’s protest is our response to
the overused lie of the oil cartel: oil price hikes are inevitable due to
oil scarcity and political turmoil,” he added.
As of this moment, the price of gasoline is only two pesos below the
historically highest price recorded, which was noted in 2008. The
difference, however, is that in 2008, the price of gasoline in the world
market is $140, while today, it is only $120.
“Around 80 percent of the process is controlled by the Big Three
companies. Therefore, it should not be affected by the fluctuations in the
market or speculations, contrary to the claims of the oil monopoly,”
explained Pauline Gidget Estella, national deputy secretary general of
College Editors Guild of the Philippines, an alliance of student
publications.
“There is a difference of around $75 between the actual amount needed to
produce a barrel of crude oil and the published price. The reality is that
oil companies have fixed a bloated price for the sake of super profits,”
explained Estella.
It is not true that the government cannot do anything at the spate of oil
price hikes, said Gemma Canalis, spokesperson of League of Filipino
Students. “The Aquino administration can junk the Oil Deregulation Law (ODL)
and lessen the impact of monopoly pricing on the poor majority. However,
as expected from a pro-cartel administration, the government turns a blind
eye to the 400 percent increase in prices of petroleum products within the
14-year implementation of the ODL,” she explained.
“The government has even distorted facts to discredit the people’s protest
against oil price hikes. It has described the protest as a transport
strike, and when the transportation is not paralyzed, they would
immediately declare the strike as a failure. It is a protest action, not a
transport strike, to begin with,” said Issa Baguisi, secretary general of
National Union of Students of the Philippines, the alliance of student
councils in the country.
“When we declared last Tuesday that we would hold a people’s protest
against the hikes, the scheduled increased was called off. This signifies
that through collective action and mass campaign, we can stop these hikes
and frustrate these oil companies, which do not stop amassing unimaginable
profits as the rest of our people could barely make ends meet,” said
Baguisi. ###
--
Pauline Gidget Estella
Deputy Secretary General
College Editors Guild of the Philippines National Office
0915.335.20.21
Jonalyn Paz
Media Liaison Officer
College Editors Guild of the Philippines National Office
0916.474.44.12
College Editors Guild of the Philippines
Media Email: cegp.newsdesk@gmail.com
Website: www.cegp.org
Facebook: Cegp Pambansang Opisina
Twitter: @cegponline
Landline Number: (02) 415-19-44 Hotline Number: +63-906-935-77-22
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MEDIA RELEASE /15 March 2012
IBON Foundation, Inc., IBON Center 114 Timog Avenue, Quezon City
Philippines
Phone: (632) 927-6986/927-7060 to 62|Fax: 929-2496| E-mail: media@ibon.org
|http://www.ibon.org
FOR SAKE OF CONSUMERS: GOV’T SHOULD REGULATE
OIL INDUSTRY
TO ENSURE TRANSPARENT PRICING
As the world marks International Consumer Rights Day, research group IBON
said that the consuming public, which bears the brunt of unabated oil
price hikes, has the right to know how the oil companies determine oil
prices.
The group urged government to regulate the oil industry to ensure
transparency in pricing. It also challenged oil firms to give additional
information about their operations to show that the price of local oil is
not beyond what is justified. “Only oil firms have full details of their
operations. But under the oil deregulation law, oil companies are
protected from disclosing these key information to the public, thus giving
the oil firms more room to manipulate their prices” said IBON research
head Sonny Africa, speaking before oil industry stakeholders and lawmakers
on Wednesday in a forum at the House of Representatives.
The forum entitled “High Oil Prices: Seeking Solutions” organized by
progressive partylist groups led by Bayan Muna and multisectoral alliance
Bayan invited lawmakers and sectors most affected by oil price hikes to
discuss the various bills and resolutions filed at the House of
Representatives to reduce and control oil prices. IBON spoke on how local
oil prices have been outpacing global crude prices as well as various
estimates on local overpricing of petroleum products.
Africa explained that oil firms are charging the public more for diesel
and gasoline noting that local and diesel and gasoline pump prices
significantly outpacing global crude prices. The price of Dubai crude
increased by an average of P0.15 per month while the pump price of diesel
increased by an average of P0.22 per month over the January 1999-January
2011 period.
He added that diesel may be overpriced by 8%-43% over the same period,
where 8% assumes crude cost in a liter of diesel is equivalent to 1.3
liters of Dubai crude and 43% assumes a liter of diesel has 1 liter of
Dubai crude.
“Unwarranted increases in oil prices hurt poorest consumers the worst with
more expensive LPG, vegetables, fish, transport fares and other basic
expenses,” Africa said. “It’s time for government to rethink the oil
deregulation law and consider regulating oil prices for the sake of
consumers.”
Important information that oil firms should make available include retail
pricing formulas and strategies; overseas supply sources and terms of
supply contracts; payments of local firms to mother firms; refinery stocks
and capacity; inventories and storage capacity; and local sales and
distribution to direct buyers, retailers and other oil firms.
Only effective state regulation of the oil industry will ensure
transparency in the oil industry, which is an important step in ensuring
cheap prices of petroleum products. Through regulation, these information
can be publicly disclosed and verified, Africa stressed. (end)
IBON Foundation, Inc. is an independent development institution
established in 1978 that provides research, education, publications,
information work and advocacy support on socioeconomic issues.
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CPP expresses solidarity with protests against oil
price hikes
Communist Party of the Philippines
March 14, 2012
The Communist Party of the Philippines (CPP)
expressed solidarity with planned protest actions to be carried out
tomorrow against the constant increases in oil prices being imposed by
foreign big oil companies against the Filipino people.
Democratic organizations of workers, jeepney
drivers, urban poor, students, women and other sectors are planning to
hold mass actions tomorrow in the face of weekly hikes in oil prices since
the start of this year. Prices of disel have increased by nearly P6 per
liter this year.
“The Filipino people are justified in
launching more and bigger protest actions to dramatize their opposition to
the oppressive pricing scheme of the foreign monopoly oil companies,” said
the CPP.
“In the face of constant increases in oil
prices, their only resort is to muster a force big enough to compel the
callous oil monopoly companies to roll back the prices of oil commodities
and push the US-Aquino regime to remove or reduce taxes imposed on oil and
repeal the oil deregulation law,” pointed out the CPP.
“By imposing one price increase after another,
the oil companies are condemning the people to suffer further economic
hardships,” said the CPP. “The Filipino people are fed up with the
constant increases in oil prices.”
“The planned protest actions are an indictment of the US-Aquino regime for
its subservience to the oil companies and its adamant refusal to heed the
people’s clamor to stop oil price increases and end the oil deregulation
law.
-------------------------------------------
Rise up in mass protest against weekly oil price
increases--CPP
Communist Party of the Philippines
March 02, 2012
The Communist Party of the Philippines (CPP)
today called on the Filipino people to rise up in mass protest against the
weekly round of oil price increases and demand an end to the policy of
deregulation that has been invoked by the Philippine government as
justification for allowing foreign oil monopoly companies to raise prices
with impunity.
The CPP issued this statement after the eighth
round of oil price increases in as many weeks resulting in prices of close
to P50 per liter for diesel and more than a thousand pesos for an
11-kilogram tank of cooking gas.
“Under the deregulation law and with the
Aquino regime benefiting from higher taxes on oil products, foreign giant
oil companies are increasing prices at will,” said the CPP. “These foreign
giants which control the entire international oil industry are wringing
the people dry and lining their pockets with billions of dollars in
superprofits.”
“The CPP calls on the Filipino people to
intensify their mass struggles and rise up in their hundreds of thousands
to put a stop to the incessant oil price increases,” said the CPP. “The
only force that can stop the oil prices increases is the force of the
Filipino people rising up in mass protest demanding a stop to the
superprofit machines of the oil companies and an end to the regime of
deregulation and clamoring for the nationalization of the oil industry.”
People’s organizations and broad alliances are
planning a nationwide protest action on March 15. The CPP anticipates
protest actions to further intensify as rising oil prices constantly push
higher the costs of living and worsen the people’s socio-economic
conditions.
The CPP pointed out that the international oil
industry is controlled by the Big 5 monopoly capitalist companies namely
Exxon Mobil, Royal Dutch Shell Company, Chevron-Texaco, British Petroleum
and Total Petroleum. “These companies control the entire oil industry,
from mining and refining, distribution and retail,” said the CPP. “The oil
monopolists collaborate with big financialists in price speculation to
artificially push up oil prices way way beyond the actual cost of oil
production.”
“These same monopoly capitalists control the
downstream oil industry, comprising the distribution and retail of refined
petroleum products,” said the CPP. “So-called small players are actually
controlled by or rely on supply provided by the international monopoly
companies.”
Last week, the price of crude oil shot up to
nearly $110 per barrel after weeks of political speculation that had
nothing to do with oil production. “It is estimated that as much as 85-90%
of the market price of crude oil is actually speculative pricing for
superprofit making,” said the CPP. It cited studies made by the US Senate
revealing that the actual cost of production of crude oil is less than $20
per barrel.
The CPP pointed out that the Big 5 oil
companies had accumulated profits of $136.8 billion last year, equivalent
to $16 million dollars of profits every hour.
|
Company |
2011
Profits |
|
(in
billion US$) |
|
Exxon Mobil |
41.1 |
|
Royal Dutch Shell |
28.6 |
|
Chevron-Texaco |
26.9 |
|
British Petroleum |
23.9 |
|
Total Petroleum |
16.3 |
|
|
|
Total |
136.8 |
|