Pnoy will address the nation on June 30. Will he dare say that his first year in office marks the revival of cronyism in its vile form? Will he dare say that the economy slowed down due to months of inactivity? Will he tell us the real truth about the infighting going on among his friends, his shooting buddies and relatives? And will he tell us that he is still grappling with the responsibilities of his job and quite unable to address the root causes of graft and corruption?
Pnoy wants to address graft and corruption in the next five years. I dare say that Pnoy should also fight corporate greed and corruption. This issue has begun to worsen in the last couple of decades and this must be addressed immediately.
Look, oil companies have again raised their pump prices. Imagine, they did so--Shell and Chevron--at the time when people need gasoline. Other oil companies did so last week.
These oil companies do not fear government. Fact is, they are subverting the will of this government and its people. They don't respect Pnoy and definitely, they do not fear the wrath of the People.
If at all, Pnoy needs to rally the people against anything, I agree that it should be fighting these giant oil companies. They have committed the highest infamy, that is disrespect a respectable people.
Showing posts with label pilipinas shell. Show all posts
Showing posts with label pilipinas shell. Show all posts
Tuesday, June 14, 2011
Friday, October 15, 2010
Pilipinas Shell charged with 24 billion tax case (Thank you Customs!)
Yes, I admit.
IN several entries here, I lambasted Customs Commissioner Angelito Alvarez for not lifting a finger against smugglers and tax evaders. Now, I am saying "thank you" to him for this singular effort to recover 24 billion pesos from Pilipinas Shell.
I am extremely overjoyed that the administration is finally starting to regain its moral compass and starting to really go after these big-time smugglers, tax evaders, and criminal lords in barongs. I hope this is not the usual ningas cogon.
I am very happy that I will just quote the entire Philippine Daily Inquirer article about Pilipinas Shell tax evasion case. Thank you, Mr. Alvarez for a job well done.
Biggest ever: P24-B tax case filed vs Shell
By Nikko Dizon
Philippine Daily Inquirer
First Posted 02:45:00 10/15/2010
Filed Under: State Budget & Taxes, Smuggling, Crime and Law and Justice, Oil & Gas - Downstream activities, Graft & Corruption
IN several entries here, I lambasted Customs Commissioner Angelito Alvarez for not lifting a finger against smugglers and tax evaders. Now, I am saying "thank you" to him for this singular effort to recover 24 billion pesos from Pilipinas Shell.
I am extremely overjoyed that the administration is finally starting to regain its moral compass and starting to really go after these big-time smugglers, tax evaders, and criminal lords in barongs. I hope this is not the usual ningas cogon.
I am very happy that I will just quote the entire Philippine Daily Inquirer article about Pilipinas Shell tax evasion case. Thank you, Mr. Alvarez for a job well done.
Biggest ever: P24-B tax case filed vs Shell
By Nikko Dizon
Philippine Daily Inquirer
First Posted 02:45:00 10/15/2010
Filed Under: State Budget & Taxes, Smuggling, Crime and Law and Justice, Oil & Gas - Downstream activities, Graft & Corruption
MANILA, Philippines—The Bureau of Customs Thursday filed with the justice department a P24.5-billion complaint against the local unit of oil giant Royal Dutch Shell, accusing the company of evading import duties and taxes in what could be the country’s biggest smuggling case.
“This criminal complaint should prove to everyone that President Aquino’s campaign against smuggling, corruption and other economic crimes respects no sacred cows,” Customs Commissioner Angelito Alvarez said at a press conference in the justice department.
Edgardo Chua, the chair of Pilipinas Shell Petroleum Corp., said his company had “never, ever engaged in smuggling. That’s against our business principles.”
In its 18-page complaint backed by 17 brown folders of invoices and other documents, the customs bureau accused Pilipinas Shell of “intentional misclassification and misdeclaration” of its various petroleum imports from 2004 to 2009 to avoid the payment of excise duties and value-added taxes (VAT).
In what Alvarez described as the biggest claim ever against a suspected smuggler, the government is seeking the payment of P24.5 billion in unpaid taxes and additional penalties.
‘Totally ridiculous’
Still, Chua belittled the government case. “We are one of the biggest taxpayers in the country. This charge is totally, totally, shall we say, ridiculous,” he said, adding the company has yet to see the complaint.
Named respondents in the complaint were Nigel Avila, Pilipinas Shell country tax manager; Brian Khriz Acosta, Carolyn Francisco, Ma. Cristina Rago, and Janice de los Reyes, Pilipinas Shell employees who signed the import entries; customs brokers Diosdado Bagon, Jorge Pascual Jr., and Mary Grace Maleon; and other John and Jane Does.
Alvarez said 52 import entries filed from 2007 to 2009 showed that Pilipinas Shell’s shipments of unleaded gasoline were “intentionally misclassified” as tetrapropylene under the Harmonized System (HS) Code.
The customs commissioner said this was “a ploy to cheat the government of billions of pesos,” as tetrapropylene was not among the articles under the National Internal Revenue Code subject to excise tax.
He said the misclassification in the 52 import entries defrauded the government of P2.5 billion in excise duties and VAT.
Between August 2005 and December 2008, Pilipinas Shell also allegedly misdeclared its imports as catalytic cracked gasoline (CCG) or light catalytic cracked gasoline (LCCG). Documents issued by Shell International Eastern Trading Co. and other shipping companies, however, described the shipments as unleaded premium gasoline—which has a higher tax rate.
Alvarez said the misdeclaration deprived the government of P385.8 million in revenues.
“With the twin acts of misdeclaration and misclassification, the government lost at least P2.7 billion worth of excise and value-added taxes,” he said.
800-percent surcharge
Alvarez said the Tariff Customs Code of the Philippines provided that fraudulent acts and practices committed by the accused could be penalized by as much as 800 percent of the taxes owed the government.
In this case, the surcharge amounted to P21.8 billion. Thus, the bureau is demanding P24.5 billion from Pilipinas Shell.
Alvarez said that the smuggling case against Pilipinas Shell was different from the P7.3-billion tax collection case against Pilipinas Shell pending before the Court of Tax Appeals.
Chua, however, said Pilipinas Shell believed the complaint was covered in the pending case.
The Aquino administration, which took office on June 30, has launched a high-profile campaign against tax evasion and smuggling under its Run After Tax Evaders (RATE) and Run After The Smugglers (RATS) programs.
Prior to the Pilipinas Shell case, the cases unveiled each week since July involved relatively small amounts and none has yet made it to court, prompting analysts to say the Aquino administration needed to show more to convince investors it was serious in stamping out corruption. With a report from Reuters
“This criminal complaint should prove to everyone that President Aquino’s campaign against smuggling, corruption and other economic crimes respects no sacred cows,” Customs Commissioner Angelito Alvarez said at a press conference in the justice department.
Edgardo Chua, the chair of Pilipinas Shell Petroleum Corp., said his company had “never, ever engaged in smuggling. That’s against our business principles.”
In its 18-page complaint backed by 17 brown folders of invoices and other documents, the customs bureau accused Pilipinas Shell of “intentional misclassification and misdeclaration” of its various petroleum imports from 2004 to 2009 to avoid the payment of excise duties and value-added taxes (VAT).
In what Alvarez described as the biggest claim ever against a suspected smuggler, the government is seeking the payment of P24.5 billion in unpaid taxes and additional penalties.
‘Totally ridiculous’
Still, Chua belittled the government case. “We are one of the biggest taxpayers in the country. This charge is totally, totally, shall we say, ridiculous,” he said, adding the company has yet to see the complaint.
Named respondents in the complaint were Nigel Avila, Pilipinas Shell country tax manager; Brian Khriz Acosta, Carolyn Francisco, Ma. Cristina Rago, and Janice de los Reyes, Pilipinas Shell employees who signed the import entries; customs brokers Diosdado Bagon, Jorge Pascual Jr., and Mary Grace Maleon; and other John and Jane Does.
Alvarez said 52 import entries filed from 2007 to 2009 showed that Pilipinas Shell’s shipments of unleaded gasoline were “intentionally misclassified” as tetrapropylene under the Harmonized System (HS) Code.
The customs commissioner said this was “a ploy to cheat the government of billions of pesos,” as tetrapropylene was not among the articles under the National Internal Revenue Code subject to excise tax.
He said the misclassification in the 52 import entries defrauded the government of P2.5 billion in excise duties and VAT.
Between August 2005 and December 2008, Pilipinas Shell also allegedly misdeclared its imports as catalytic cracked gasoline (CCG) or light catalytic cracked gasoline (LCCG). Documents issued by Shell International Eastern Trading Co. and other shipping companies, however, described the shipments as unleaded premium gasoline—which has a higher tax rate.
Alvarez said the misdeclaration deprived the government of P385.8 million in revenues.
“With the twin acts of misdeclaration and misclassification, the government lost at least P2.7 billion worth of excise and value-added taxes,” he said.
800-percent surcharge
Alvarez said the Tariff Customs Code of the Philippines provided that fraudulent acts and practices committed by the accused could be penalized by as much as 800 percent of the taxes owed the government.
In this case, the surcharge amounted to P21.8 billion. Thus, the bureau is demanding P24.5 billion from Pilipinas Shell.
Alvarez said that the smuggling case against Pilipinas Shell was different from the P7.3-billion tax collection case against Pilipinas Shell pending before the Court of Tax Appeals.
Chua, however, said Pilipinas Shell believed the complaint was covered in the pending case.
The Aquino administration, which took office on June 30, has launched a high-profile campaign against tax evasion and smuggling under its Run After Tax Evaders (RATE) and Run After The Smugglers (RATS) programs.
Prior to the Pilipinas Shell case, the cases unveiled each week since July involved relatively small amounts and none has yet made it to court, prompting analysts to say the Aquino administration needed to show more to convince investors it was serious in stamping out corruption. With a report from Reuters
Tuesday, November 10, 2009
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
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:
"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.
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.
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.
Tuesday, October 20, 2009
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.
"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.
Tuesday, June 23, 2009
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.
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.
Wednesday, May 6, 2009
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.
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.
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