At the same time, Cebu Rep. Antonio V. Cuenco, chairman of the House Committee on Foreign Affairs, urged Congress to come up with "speedy and drastic solutions" that would cushion the effects of surging world oil prices that have breached the $67 per barrel level.
Cuenco said the pattern of oil price hikes has become very alarming, with prices expected to reach $80 per barrel before the end of December.
"Congress must immediately enact legislation that will help prepare the country cope with the escalation of oil prices such as the drastic reduction of our debt service payments to international lending institutions,’’ he said.
For his part, De Venecia proposed a "major recycling of the petrodollars and extraordinary windfall profits" of the Arab-led Organization of Petroleum Exporting Countries (OPEC), using them as major equity investments and long-term low-interest loans to developing nations.
De Venecia’s proposal is the main component of a major four-point plan he has unveiled which includes a call for an urgent oil summit of leaders of the Association of Southeast Asian Nations (ASEAN) plus 3 (China, Japan and South Korea), a summit of the powerful G-8 countries, or a direct meeting of oil-producing and oil-consuming nations.
The Speaker said he will propose to President Arroyo as a Philippine government initiative the holding of an oil summit among ASEAN leaders.
This developed as Malacañang for the first time ordered new energy conservation measures in all offices across the country as a matter of national survival.
In the Philippines, De Venecia said, compressed natural gas, ethanol and alternative sources of energy "should be prioritized now instead of the poisonous exchanges and destructive politics," apparently referring to the current political scandals heaped against the Arroyo government.
De Venecia said US President George W. Bush and the heads of the G-8 countries could meet or organize a summit of oil-producing and oil-consuming nations as oil prices continue to soar, fueled by massive global demand led by China, India and the United States.
De Venecia said the recycling of Arab petrodollars should be "in the form of equity investments and long-term low-interest loans so as not to further aggravate global external debt, which would result in the destruction of the global anti-poverty campaign."
He said further that the recycling of Arab petrodollars should avoid the pitfalls of the 1970s and 1980s when short-term loans for developing nations were encouraged and fell due, and debt-saddled nations were eventually forced to call for debt repudiation and debt moratorium.
"It is the conventional short-term loans that could eventually trigger a financial crash among the borrowers," De Venecia said.
He said long-term and low-interest loans and major equity investments should be extended by the Arab-led OPEC powers to developing countries in Asia, Africa, and Latin America to help them achieve their development goals.
De Venecia had earlier met with the Arab-led OPEC Fund in Vienna and discussed with its director general, Dr. Suleiman J. Al-Herbish, his global large-scale debt-for equity in development projects proposal that has begun eliciting a positive response from the major powers in Europe and the Asian Development Bank.
His first plan proposes a conversion of global debt into 50 percent equity for lenders in development projects for their choice such as debt for reforestation, debt for mass housing, debt for irrigation and post harvest facilities, debt for hospitals and health care, debt for schools and information technology, debt for clean water, debt for infrastructure projects, debt for eco-tourism and debt for wealth-creating projects such as mining and reclamation.
The objective, the Speaker explained, is to enable debt saddled nations to attain the United Nations Millennium Development Goals (MDGs), chief of which is to halve poverty by 2015. (Ben Rosario)
Malacanang urges political leaders to set aside partisanship
By FERDIE J. MAGLALANG
Malacanang yesterday warned against an energy crisis that may reach unprecedented proportion unless political leaders, including those from the opposition, set aside partisan divisiveness and find an immediate solution to the problem.
Press Secretary Ignacio Bunye issued the stern warning after the prices of crude oil in the world market continued to soar to historic record, sending panic signals to oil dependent countries, including the Philippines.
"We face a looming energy crisis of unprecedented proportions and the whole nation must be galvanized to meet it with unity and vigor," Bunye said in his Sunday newspaper column.
In 2002, the price of crude oil in the world market stood at just $25 a barrel, but since then it has jumped up to more than 160 percent and is largely feared to reach to $80 a barrel if the massive global demand and production problems will not be addressed.
Over the weekend, local oil firms have adjusted the prices of their oil products, prompting the government to reactivate its energy efficiency and conservation program and promote alternative source of fuel to mitigate its impact on ordinary consumers.
Bunye said all sectors, including the opposition party, should take up the challenge posed by the continued increases in the prices of oil in the world market by setting aside their differences and finding an immediate solution to avert a potential energy crisis.
"We call on all political leaders, including the opposition, to take the high road of statesmanship, set partisanship aside, and join the people in seeking solutions," he said, mindful of the political heat that preoccupies the national leadership.
Both the administration and opposition leaders have focused their attention and energies on the impeachment complaint filed against the President who is now facing charges of bribery, betrayal of public trust and graft and corruption.
"We cannot afford a divided nation amid this oil crisis. We have to unite to endure and survive, and let not the people blame their leaders for not taking up the challenge," Bunye added.
In a telephone interview, Executive Secretary Eduardo Ermita said the President is convening her energy officials this week to discuss ways by which to mitigate the impact of world’s oil price increases to the ordinary consumers.
He said the President will issue a directive to remind all government agencies to strictly observe specific energy efficiency and conservation measures, including the strict monitoring and control of the prices of basic commodities in the local market.
KMU sets Makati rally against top three oil companies
The Militant Kilusang Mayo Uno (KMU) will hold a rally today in front of the Makati business offices of the big three oil companies to protest the continuous surge of oil prices.
In a statement, KMU officials said "rain or shine" they will form picket lines at 11 a.m. today in front of the Makati offices of Shell, Caltex and Petron.
KMU Secretary General Joel Maglunsod said oil companies have no right to increase oil prices because they have allegedly overpriced their products by more than P1.14 to P2.12 per liter for diesel and P1.14 to P2.15 per liter for kerosene from January to August this year.
He also assailed President Arroyo for her alleged inability to devise measures to soften the impact of the surging oil prices in the world market.
KMU leaders said that they will also urge Congress to repeal the Oil Deregulation Law, which they claimed is the primary culprit behind the surging oil prices.
Meanwhile, the militant transport group Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) denounced Mrs. Arroyo’s reported statement that the government cannot do anything to prevent the oil prices from surging.
PISTON is currently preparing for a transport strike to urge the government to control the oil industry. The strike will be the biggest of all PISTON’s past strikes, leaders of the group said.
Transport, labor groups won’t ask for new fare, wage hikes
By E.T. SUAREZ
Transport and labor groups said yesterday that they have no immediate plan to ask for fare and wage increases despite the soaring cost of diesel, gasoline and other petroleum products in the world as well as in the domestc markets.
The groups, led by PISTON, Congres of National Transport Organization of the Philippines (CNTOP) and the Integrated Labor Organization of the Philippines (ILOP), said exorbitant increases in oil prices, particularly of diesel, kerosene, gasoline and liquified petroleum gas (LPG), are valid basis for a petition for a new fare and wage increase, but they do not like to do so at the moment as these could mean additional heavy burden on commuters and average wage earners.
They said that as pointed out by the Trade Union Congress of the Philippines (TUCP), expenses for transportation represent a big percentage of the daily budget of a working family. Any additional fare increase, the transport groups said, could make life more difficult for ordinary workers and other wage earners who are already groaning under the impact of exorbitant increases in power rates, water service and the prices of goods and services, including basic commodities.
Many commuters, particularly average wage earners, students and elderly citizens, could hardly afford the current fare rate so how much more if there will be additional fare increase, the groups said.
ILOP President Florante G. Reyes said that like the transport groups, organized labor is hit hard by unabated increases in the prices of petroleum products but they will first study the situation before deciding to file a petition for a wage increase.
Reyes said that despite their claims to the contrary, the employers can definitely afford to give more to their workers, but organized labor is very cautious about the current situation for the country’s sake.
He assured that the members of ILOP and other labor groups are not deaf to the appeal of the President to conserve energy and support all means to bring down overall consumption of energy.
