PRESS RELEASE
Information Bureau
Communist Party of the Philippines

CPP denounces Arroyo and oil companies' "rollback charade" -- CPP

July 21, 2008

 The Communist Party of the Philippines (CPP) today denounced
the collusion of the Arroyo regime and oil companies to fool the people
with a rollback of P1.50 per liter in the price of diesel after jacking
it up by P3 per liter just a few days ago. "This trifling rollback is
an obvious charade meant to placate the Filipino people's anger at the
oil cartel and the Arroyo regime for their collusion at bringing about
the unbridled spiraling prices of oil products."

 A statement today by the CPP said that "Supposedly in response
to 'pleadings' by Gloria Arroyo for a symbolic and temporary partial
rollback from the last P3 per liter diesel price spike, Malacañang and
the oil companies have made a pretense at 'moderating their greed'."

 "By applauding the oil companies and praising Gloria Arroyo,
Malacañang's spinmeisters are obscuring the fact that the price of
diesel has in fact been increased by a net of P1.50 per liter," added
the CPP.

 "This rollback charade only serves to buttress Arroyo's
'subsidy' gimmicks whose immediate aim is to prettify the president for
her SONA (state of the nation address) next week. She wants to
overshadow the record plunge in her popularity rating, confuse the
people and sidetrack their anger over the deepening economic crisis and
their widespread sufferings resulting from incessant oil price
increases," the CPP said.

 Local pump prices are estimated to be overpriced by at least
P12 per liter. Yet, local subsidiaries of oil companies have been
insisting that they still have 'underrecoveries' of P7 due to the
escalation of international oil prices, and have announced in advance
that they have to continue raising local pump prices. The P3/liter
diesel price increase last Friday was the 20th since the start of the
year and the steepest since 1990. Prices of oil have been rising
continually as a result of price manipulation by the international oil
cartel and finance capitalists.  

 The CPP warned the public to expect the oil companies to resume
unrestrained oil price increases just a few days after Arroyo's SONA.
"Arroyo herself will be overjoyed with more oil price hikes as she
would be wallowing in even more 'Katas ng VAT' for her growing slush
fund and indulgence," said the CPP.

 The Arroyo regime is expecting to generate at least P70 billion in increased VAT collections generated by the oil price hikes.

 "The scandalous amount being pocketed by these oil monopolies
are already raising a howl among people," said the CPP. Workers,
drivers, students, ordinary employees and other sectors have been
launching protest actions demanding a stop to oil price increases, the
removal of the 12% VAT on oil, and the repeal of the oil deregulation
law.

 Yesterday, Cebu Representative Eduardo Gullas also deplored the
exceesive profits being earned by oil companies. He pointed out that,
since the implementation of the Downstream Oil Industry Deregulation
Law in 1998, Petron Corporation and Pilipinas Shell combined have
earned P70 billion in net profits. The independent think-tank Ibon
Foundation also revealed that in 2007 alone, the top three oil
companies earned combined profits of P62 billion.

Reference:

Marco Valbuena
Media Officer
Cellphone Numbers: 09179776392 :: 09282242061
E-mail:cppme...@gmail.com