SunStar Daily Cebu Speak out: Empty government propaganda

Friday, July 25, 2008

Renil Bandiez Oliva
Secretary General
Anakbayan (Sugbo)Cebu

WITH the P3 per liter price hike implemented by oil firms recently, the 20th for the year, pump price of diesel is now four times more expensive than in July 2001 when Gloria Arroyo delivered her first State of the Nation Address (Sona).

That time, diesel averaged around P14.50 per liter.

A week before she delivers her eighth Sona, the pump price of diesel jumped to P58.94 per liter or a 306 percent rise from its level in July 2001.

This belies Malacañang’s claim of better life for Filipinos under the Arroyo government, a recurring theme that is expected to be repeated by the government going to Arroyo’s Sona.

Ordinary jeepney drivers, for instance, spent P435 per daily trip on diesel when Arroyo had her first Sona.

Now, they need to shell out more than P1,768 just to pay for diesel.

Of the said amount, more than P212 will go directly to the Arroyo government in the form of 12 percent value added tax (VAT), which was not imposed on petroleum products until November 2005.

The same thing is true for other ordinary income earners who rely on fuel products for their livelihood.

Fishers who use regular gasoline for their motorized bancas now spend as much as P578 per fishing trip, of which P69 go to VAT.

In July 2001, they only spent P172 per fishing trip.

Escalating fuel prices have contributed to sharp increases in the cost of living because of its domino effect on the prices of other goods and services.

When Arroyo first took office, the daily cost of living for an ordinary family in Metro Manila was P509. Today, it has already jumped to about P858.

Arroyo and her spin masters may aggressively defend the VAT and highlight the supposed gains that ordinary people get from it.

But the hard realities on the ground will easily discredit this empty government propaganda.