An Appeal to Arroyo: DECLARE A NATIONAL EMERGENCY AND TAKEOVER THESE OIL FIRMS

Dear Madame Arroyo:

This is just my fifth letter to you and the first four letters, I was greatly satisfied. You, through your spokespersons, responded positively to my appeals in this site. For that, I am greatly humbled.

Now, I have just one request and proposal about this so-called OIL SHORTAGE BOGEY that these OIL companies together with their local government LACKEYS and PUBLIC SUPPORTERS want us to believe.

First, time to ask Energy secretary Angelo Reyes to retire. He's causing so much panic and fear for and on behalf of these giant oil companies that it is time for Reyes to leave public service. What he's doing is public DISSERVICE. Best for him to just sit at the board of one of these oil giants.

Second, if you can't ask for his head, ask him to take DRASTIC ACTION. Ask him to use his brain and brawn as a former GENERAL and tell these oil firms to TOE THE LINE or else. Mobilize him immediately and tell him to TAKEOVER ALL THESE OIL FIRMS.

Third, make everything legal by DECLARING A NATIONAL EMERGENCY and TAKEOVER ALL THESE OIL FIRMS. They cannot do anything about it because it is TOTALLY CONSTITUTIONAL.

What is the prime duty of the Government? Let me quote Sec. 4, Article II of the 1987 Constitution of the Philippines which states that the primary duty of the Government, " is to serve and protect the People." What else? Under Sec. 5, it is

"the maintenance of peace and order, the protection of life, liberty AND PROPERTY and the promotion of the general welfare are essential for the enjoyment by all the people of the blessings of democracy."

Right now, the people are being threatened by HIGH PRICES which UNDER A STATE OF NATIONAL CALAMITY and ECONOMIC CRISIS, we, the People cannot really cope with. I, myself, am financially distressed because of these high prices. Last night, in fact, some gas stations refused to sell diesel to me.

High prices are caused by excessive MONOPOLISTIC ACTIONS of private companies and enterprises. One of those which acts like a MONOPOLY is the OIL GIANTS, led by PETRON, SHELL and CALTEX.

Monopoly is prohibited under Sec. 19 of Article XII of the 1987 Constitution, which states, and I quote:

" The State shall regulate or prohibit monopolies when the public interest so requires. No combinatins in restraint of trade or unfair competition shall be allowed."

Under Sec. 17, of Article XII, the state is empowered to act accordingly and takeover enterprises under a state of national emergency. Let me state it clearly:

In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately owned public utility or business affected with public interest.

Section 18, of the same Article, it states:

 "in the interest of national welfare or defense, establish and operate vital industries, and upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be operated by Government."

Act with dispatch Madame President.

If these oil companies threaten us and are creating this OIL SUPPLY SHORTAGE BOGEY, let GOVERNMENT take over. If these companies are hoping that you'll back down, DO NOT.

This is now, a matter of grave security concern. This is a direct test of the powers of the government, particularly the Executive. If you back down on this, people will start believing that you are a LAME DUCK President already---not good for your public image and definitely, not helpful if you want to run as Congressman or Vice President.

Think about it. These oil firms are causing DESTABILIZATION. Time to cut their horns.

Ka-Oil-lulan! Govt should import oil instead of these oil companies

These giant oil companies should be charged, their executives hauled to jail and their operations seized by government. They think that the Filipinos are easily fooled by their PR machinery. They think that getting the headlines of the Philippine Daily Inquirer would be enough pressure for this government to back down on the fight.

And I pity the PDI for allowing themselves to be used as the main speaking platform of these oil companies. How many millions of pesos worth of advertising space did these oil giants pay you, Mr. Inquirer? I thought the PDI sides with the people? IMagine, instead of releasing Santiago's report on the monumental corruption on the Road User's Tax (which I think deserves the headline), the PDI instead bannered or headlined the alleged "only two weeks supply" of the oil firms.

Crap. Bull. Katarantaduhan!

E.O. 839 is one of those singular acts of Mrs. Arroyo that deserves praise. Curiously though, Mrs. Arroyo allows her Energy secretary Angelo Reyes to play footsie and acts as the oil industry's main spokesperson and poster boy. It seems that government is playing both sides---Reyes, mouthing platitudes and portraying the role of the doomsday boy, while Justice secretary Agnes Devenadera leading the charge for the oil companies' prosecution. Who really speaks for and on behalf of Mrs. Arroyo?

Oil companies have been using the Inquirer to scare us and make us believe that there would be a shortage. These companies claim that their supplies will only last two weeks. And they position themselves as the only ones who can import oil products.

Under the Constitution and our laws, government can very well seize the assets of these oil firms and do the importing of oil products themselves. And I dare Malacanang to do such a thing. Let's put a stop to the "ka oil lulan" (kaululan) of these oil giants and "small" players who form this cartel, smash them to smithereens, and let government do its primary job of protecting the interests of the Filipino People.

Who will believe that these oil giants are "hurting" and "losing money"? EO 839 is just two weeks old. Imagine, oil companies claim they already lost 18 billion pesos worth of income. Yun naman pala. The truth is, they earn 18 billion pesos for just a week of operation.

If these companies would not import oil for fears of losing more money, let government seize all their assets, especially their refineries under the name of the State and let the People support them. Mrs. Arroyo can designate an energy czar or czarina or be the czarina herself and run the entire oil industry. Mrs. Arroyo can very well do this because we are still under a state of calamity.

Likewise, jail this LPGMA head who violated the EO by allowing his members to raise LPG prices by as much as 30 pesos. He deserves to spend the rest of his life in jail for violating not just our laws but making a mockery out of our government.

Who do these oil players and LPG dealers think they are, more powerful than the State?

This tug of war between Malacanang and the oil players is a test of Executive Power. It is also a power struggle between unscrupulous members of Private Enterprise and the State. Who wins in the end is a matter of Leadership. Mrs. Arroyo should show her mettle in this. And she deserves the People's support.

Testing Executive Power

Pilipinas Shell and Petron Corporation (newly acquired by San Miguel Corporation) just raised their fuel prices at the time when government agencies are debating on the legality of including oil products under price control; and while Congress mulls over scraping or amending the Oil Deregulation Law.

"Officials of the two firms announced the following price increases effective Tuesday: unleaded premium gasoline by P1.25 per liter, regular gasoline by P0.85 per liter, diesel by P2 per liter, and kerosene by P1.50 per liter. Shell's price increase will take effect 12:01 a.m. Tuesday, said Roberto Kanapi, vice president for communications. Petron's price adjustment will take effect 6 a.m. Tuesday, said spokesperson Virginia Ruivivar." says an Inquirer report.

This is by far, the most humiliating act done by oil firms against not just Philippine president Gloria Macapagal-Arroyo's administration but moreso, against the Filipino people. Mrs. Arroyo has asked the inclusion of oil products among those to be regulated. She has tasked Justice secretary Agnes Devenadera to file a legal question which has since been blocked as expected by no less than the Energy secretary Angelo Reyes.

The unpatriotic actions taken by these two giant oil firms during these times of tragedy should not be taken lightly by this government. These actions, though being taken in the name of commerce, are direct acts meant to test and circumvent Executive Power.

This is the second time that Shell did this. Remember that at the height of Typhoon Ondoy, when everybody was agonizing over the loss either of life or property, Shell hiked its oil prices ahead of everybody under the guise of "exercising its right" under the Oil Deregulation Law. It did so at the time when Congress is actually mulling whether to scrap the Deregulation law or not and when public sympathy goes against it. Some views this as a loss of delicadeza by this Dutch-owned oil company.

I may have cross swords many times with this administration, but I cannot deny that these actions being taken against oil firms by this government are truly admirable.

Having said this, I support Mrs. Arroyo in this. I urge the President to exercise her full executive powers and penalize these oil giants by either putting them out of business or censoring her secretaries and enjoin them to support her on this.

Arroyo will leave an excellent legacy if she succeeds in this. She has the full support of the people against Shell and Petron.

Gloria, do not be a lame duck in this.

Oil prices and RP recession

Ok. I checked today and the world's crude oil prices being traded went down by about 4 pesos. Its trading in London by US$67.32 (US$1:48) or about 3,231.36 php per barrel.

Now, a barrel of crude oil contains 159 liters of oil. So, crude oil should have been passed to us only 20.30 php per liter. That is, if these oil companies get their crude in London.

If these oil companies claim that they get their crude from Singapore, the news said that even prices there fell to US$67 per barrel. That's even lower than our previous calculation.

Of course, oil companies may have to factor in freight costs and profits.

The average retail price of a gallon of gasoline in seven industrialized countries cost US$ 4-5 dollars (US$1:48). That's about 240 pesos per gallon. Now, since there is about 3.78 liters per gallon, gasoline should probably fetch here at around 63.49 pesos per liter, still lower than ours here.

But, that's not the point.

These oil companies are raking profit after profit says Oil Price Watch Chairman Roberto Concepcion Jr. When it was time to lower prices, oil companies did so ginger-ly. Now, why are companies raising their retail oil prices now?

According to a hedge fund analyst, oil companies are anticipating the recession. The World Bank says the recession would happen in the third quarter of this year due to weak economic activity. Should the economy weaken as predicted, this will surely impact on commodity prices, including oil.

Oil companies should explain this to the public in a more efficient way. I think the problem lies on the ineffective way these companies handle their external communications. People would understand if they just act with transparency.

Pilipinas Shell, Caltex & Petron should be punished!

Government should teach Pilipinas Shell, Caltex and Chevron a lesson. These giant oil companies showed arrogance in obeying a court ruling ordering the company to open its books. The company's counsels asked if the court has jurisdiction over them.

By the very fact that they are doing business here in the Philippines, they automatically subject themselves to the jurisdiction of our courts. If the courts say that this Dutch oil company open its books for public scrutiny, it should do so--without compunction.

If Pilipinas Shell would not oblige, then, they must leave this country and never come back. How dare they question our courts?! Same goes to Caltex and Petron. They should submit themselves to the jurisdiction of our courts.

Probably the problem lies in the lack of a law that would require them to submit their books to government scrutiny. In the US, all companies are required to follow the Sarbanes-Oxley Act which is a law obliging companies to open their accounts for reportage. They also have the US Government Accounting Office (GAO) which serves as the investigating arm of the government with regards to acts of private enterprises.

Are these 3 giant oil companies saying that they are above our government?

These acts are in direct contravention with the law and the very authority of this government. These oil companies not only committed a grave infraction---they also subverted the sovereign power of this government and the Filipino People.

What will Mrs. Arroyo do? Will she bow down to these giant oil companies or will she enforce the sovereignty of this government? This is a test case for Mrs. Arroyo.

Oil companies and Meralco: Big Players with Big Kapalmuks

Why do giant oil companies find it very hard to rollback oil prices, when small players can do it without batting an eyelash? Answer: they pay big bucks to government to protect their asses compared with what small players give as "tongpats". Remember that Shell, Caltex and Petron executives report to their global asses...err...bosses and they must report big profits; otherwise, as what Senator Kiko Pangilinan says they might as well abandon this tiny republic.

The energy undersecretary this morning admitted on national radio that these giant oil companies can't ask for recovery from losses anymore simply because they already re-coup whatever they incurred since July 2008. So, why are these giant oil companies still refuse to bring back oil prices to respectable levels.

Same as Meralco. You know, this crafty, little old abuser demands a 5-peso increase in their rates this month. I remember when GSIS President Winston Garcia was lambasting them and nearly acquired Meralco, the Lopez-owned utility firm justified the high price of electricity with the high prices of oil. Now that oil prices are falling, why is Meralco demanding for a rate hike? Kapal naman ng mukha ng Meralco!

We have the highest electricity rate and the highest gasoline and diesel prices in the entire Asia! These profiteers are doing their stuff to the detriment of the suffering masses.

Come to think of it...it's not only them who deserve the people's justice. We also must militate against food and rice traders who continue to sell high prices despite the falling global food prices. These people are so brazen in fooling us simply because we allow them to. It's time for the people to hit back at these people, especially Meralco. Meralco is the most vile utility firm ever to walk the face of this country. It should be partitioned and its franchise revoked by this government before it further cause destruction to the lives of the people.

Cheap Tricks

Yesterday, Gloria signed the Cheaper Medicines bill. It aims to bring down the costs of medicine. Senator Mar Roxas was there. He witnessed the signing of his pet bill. After that, he was interviewed, along with Gloria, and said that the bill will help Filipinos buy cheaper priced medicines.

Question to Mr. Roxas--how diluted is this approved version? I mean, Gloria thumbed down the "generics only" provisions of this bill. Now, based on your assessment, will this affect the prices of medicine? In the next few weeks or months, we will see if this bill will indeed, bring down the costs of medicines.

Two days ago, the DSWD and Meralco started giving 500 peso dole-outs to lifeline users of electricity. Question---how long will government give cash subsidies to the poor? Reports say its only for the month of May. Succeeding months, consumers will have to bear the brunt of high electricity rates. It's okey, says the apologists. At least, government extended some help to ease the burden. After this month, what then?

Gloria also ordered the Department of Energy to extend a 5-peso diesel subsidy to jeepney drivers and operators. Energy secretary Angelo Reyes says this is all there is to it. While Reyes was saying this, prices of gasoline and diesel shoot up to 1.50 pesos per liter. Diesel prices are now close to 50 while gasoline prices are nearing the 60 peso mark. Reyes can't do anything? And he says that he's a former Chief of Staff? What a wimp!

Question---why is Gloria's gang not touching Petron, Caltex and Shell? I mean, now is the time for government to intervene, but they are not? Marcos did regulate these oil companies before. Why can't we regulate them now?

The truth---oil companies probably give billions worth of lobby funds to silence government opposition. That's the only reason I see at this point.

Lastly, Gloria's gang are targeting telecommunications companies to lower text and call rates. That's commendable, to say the least. However, there's a catch--government will still continue getting VAT-related costs from them. So, the costs will still be considerable for the Filipino consumer.

Anyway, I had enough of this. Let us allow government to do its thing with all these cosmetic and palliative solutions and let's just see what will happen next.

There's one thing that is very evident in all these--government did not do its job properly during the last eight years of its administration.

Strikes to break the camel's back

Tomorrow, transport groups intend to make a lot of noise against the continued rise of the prices of gasoline. Bishops have encouraged the people to support these groups. With one peso hikes almost every week, people are tired of it and want to demonstrate their disgusts against government.

Another rally is set on May 17, ten days before the expected "takeover" of government in the utility firm Meralco. While we are talking about this, government has allowed the diminution of its stake in Petron, a former government owned and controlled corporation, now privatized. I can understand this since privatization is really the policy of government right now. While they are privatizing the oil industry, government wants a reverse in the power sector?

Government should probably consider raising its stakes in Shell, Petron and Caltex to be able to have a say in how these companies run their operations. I mean, being intrusive at this point is understandable, since the very lives of the people are at stake here. Instead of further divesting in the oil industry, government should take the industry by the neck and squeeze every profit from them. That way, government can directly ease the suffering of the people.

One question though--will these rallies break the camel's back?

Predatory governments a threat to democracy

Our government tried dipping its hands in the corporate pot during the dictatorship. When effective controls were lifted in the post-Martial law regimes, government owned and controlled corporations lost profitability and closed down. This affected growth which forced government to institute privatization to generate revenues.

When governments such as ours assume a predatory nature, foreign investments tend to get affected. If you look at the figures, the more predatory a government becomes, the less FDI flows in.

However, in the case of Meralco, this regime thinks it can do a better job managing electricity rates than what the Lopezes are doing. In the interest of the public, says Ermita and Gloria poster boy Winston Garcia, it's time to seize the utility firm from private hands. This policy is a reversal from the previous government privatization stance.

If this happens, what now with oil companies? Surely, this sends a chilling message to all those companies directly transacting with the public. Next to Meralco, will Gloria run after oil companies such as Shell, Petron, Caltex, etal? All the more she should do that. These oil companies rake in billions of pesos of profits.

How about telecommunications companies? With high call rates, all the more should Gloria and her misfits seize them to effectively lower rates. They should be seized as well.

Its a laudable effort on the part of Gloria to call for a lowering of electricity rates since compared with our Asian neighbours, our power rates are higher than them. A lowered electricity rate brings in more investments since the investment climate is perceived to be better.

Gloria's efforts at enhancing our competitive advantages as an investment site are sterling accomplishments. Nonetheless, Gloria should not be targetting just Meralco. She should also target PLDT, Bayantel and Globe Telecommunications. She also should take over Shell, Petron and Caltex, the three big players in the oil industry. Next to them, she should also seize food companies, especially those rice importers since they directly affect Pinoy lives. And even those wheat traders. All should be fair game.

As expected, we tend to like reverse growth instead of progressive growth. Predation is an anti-thesis of democracy. This is an extreme form of nationalism, an aberration in an increasingly globalized world.