Energy Secretary Jose Almendras made a big fool of himself last night over at TV Patrol. Noli de Castro asked him a very simple question which he failed to answer---when will we implement a cap in oil prices?
De Castro explained that the people are really complaining over the irrational rise of pump oil prices. Imagine the policy of allowing big time oil companies to raise their prices depending on current crude oil price.
Oil companies brought their stock a week ago, and stored it in their facilities. Based on DOE logic, if they use these old stocks now, the selling price would have to be the prevailing or current crude oil price. Meaning, this stupid DOE allows oil companies to buy oil at US$ 80/barrel last week and charge it to us by $ 110/barrel just because it is the prevailing price in the global market.
Stupid. Greedy. Evil.
And this government allows this to happen because of its neo-liberal economic policy of allowing free market forces to dictate the prices in the market.
Also, appointing a former company executive as government's energy official is a wrong move. Almendras' mind is geared towards profits and sustainability--not about taking measures to ensure the protection of the people's welfare.
I am not against company profits--what I am against is the irrational rise of prices due mainly to greed.
Senator Ralph Recto is correct---these oil companies should actually be asked or even forced to by government not to further raise their pump prices. Government's constitutional police powers allows it to restrain the greed of these companies.
Now, there are two things government has to do to contain this situation:
1. Stop collecting VAT from oil temporarily; or
2. Put a cap on the price of pump oil
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