'Decline in poverty rate, useless amidst oil price hikes,' says urban poor group

PRESS RELEASE
22 January 2012

New survey result that shows poverty rate has gone down will only be futile amidst the unrelenting price hikes on petroleum products, and its backlash on the price of basic commodities."

This is the statement of urban poor group Kalipunan ng Damayang Mahihirap (Kadamay) on the lack of action of the Department of Energy (DOE) and the Aquino administration, in the light of price hikes by the oil cartel.

Gov’t-oil cartel collusion
The group called on the people not to get by with such inaction, and the evident collusion between the Aquino government and the ‘Big 3’ oil cartel. “Aquino should place the oil problem and the poverty of his people first before his clan’s interest over Luisita.

Kadamay is also pleased by some sectors’ call on Energy Secretary Jose Rene Almendras to resign from his post.

“DOE has only monitored rather than acted on the issue of OPH. It has acted as if everything is normal with regards to these price hikes,” group’s statement said. “The people want to see more from the said agency.”

Overpricing review
The urban poor group also doubted that the scheduled review of the financial statements of six oil players in the country would be done fairly enough to prove the overpricing scheme of the oil cartel.

Still, it expressed its doubt whether the result of the said review would serve the interest of the people. “The economists joining the audit team are open endorsers of neo-liberal policies such as deregulation, which is behind the unabated oil price hikes and the overpricing scheme of the cartels,” the group stressed.

Also, the group said that there is a very small chance for a repeal of Oil Deregulation Law in the Congress, as well as the 12% E-Vat on petroleum products. For this, the group called on the people for more and bigger people strikes to confront the issue.

On its part, Kadamay said it will launch community-based noise barrages and other actions in the coming days to raise public awareness on the ‘collusion between the government and the oil cartel in hoarding millions of pesos from the poor through tax collection and deceptive price hikes.’ ###


Kalipunan ng Damayang Mahihirap (Kadamay)
Militant Center of the Urban Poor in the Philippines
Reference: Gloria 'Ka Bea' Arellano, national secretary-general (09213927457)