Political will, Kontra Kartel said, would ensure stable prices amid rising crude oil prices in the world market.
Kontra Kartel insisted that "nationalization" - government takeover of private property or operations - must be considered at this point as they called on the government to recall the oil deregulation law, or Republic Act 8479.
Oil deregulation has been given a chance, the group noted, and officials continued to argue that letting market forces decide the prices of petroleum products will benefit the people eventually.
"Eight years after the oil industry was deregulated, after realizing that government pronouncements remain a pipe dream, there is an urgent need to re-examine the concept of nationalization of the downstream oil industry," Kontra Kartel said.
Unlike in deregulation, a nationalized atmosphere undertakes price control which can minimize the impact of sudden price increases brought about by the peso devaluation and fluctuations in the prices of imported crude oil, the group explained.
Under nationalization, market forces should not be the only determinants of pump prices. The need to make prices as affordable as possible to consumers should be more important, Kontra Kartel argued.
"Socially sensitive products" like diesel, liquefied petroleum gas (LPG) and kerosene shall be given more priority and thus, subsidized to ensure lower prices, Kontra Kartel said.
"Nationalization can correct this setup by reversing the depoliticized price setting and having instead a regulated pricing mechanism. The latter take cognizance of the need to make petroleum products affordable," the group pointed out.
As with the guarantee of oil supply specifically in remote areas, Kontra Kartel noted that the deregulation of the oil industry with the participation of new industry players did not ensure accessibility of petroleum products in rural areas.
The group added that control of the so-called Big Three oil firms namely, Petron Corp., Pilipinas Shell and Caltex Philippines persists "because deregulation has only given them much leeway in engaging in unscrupulous practices like price fixing."
Kontra Kartel spokesman Danilo Arana Arao debunked claims made by the government that it is powerless when it comes to controlling the increase in the prices of oil and other petroleum products.
According to Arao, a journalism professor at the University of the Philippines who wrote a master’s thesis on the state of the Philippine downstream oil industry, the government can stop the collection of specific taxes on petroleum products to force oil companies to roll back prices.
Under Republic Act 8184 or the Oil Tax Restructuring Law, Arao pointed out that the government collected on a per liter basis: P5.35 for premium gas, P4.35 for unleaded, P4.80 for regular gas, P1.63 for diesel, P0.60 for kerosene and P0.30 for fuel oil.
He disclosed that in 2002, the country consumed 342,000 barrels of oil per day, or about 54 million liters.
Given the weighted average of P1.58 per liter in specific taxes, Arao said this translates to a government income of P85.4 million per day, or P31.2 billion in one year.
"It is not true that the government is helpless when it comes to oil price hikes," Arao said.
"The Arroyo administration can draw some lessons from, ironically, ousted President Joseph Estrada, who, at the height of the impeachment controversy, signed into law Executive Order 314, effective November 8, 2000, which mandated a three-month suspension of a three percent import tariff on crude oil and most refined petroleum products," the professor said.
At the time, the Estrada administration aimed to "temporarily cushion the impact of oil price hikes on the prices of basic commodities and services," he added.
Arao claimed that the repeal of RA 8184 is just one of the many feasible measures to nationalize the oil industry. Other measures would include the reversal of the privatization of Petron, centralized procurement of crude oil and refined petroleum products to arrest transfer pricing and other unscrupulous practices, initiation of commodity swaps through bilateral arrangements, establishment of a buffer fund that can help cushion the impact of price fluctuations in international crude oil, and aggressive development of alternative sources of energy.
For their part, militant women’s group Gabriela joined Kontra Kartel in calling for the repeal of the oil deregulation law.
In a statement, Gabriela secretary general Emmi de Jesus warned that through Kontra Kartel, they will continue to expose to the public the role of big oil companies and the government in the "skyrocketing oil price increases."
Gabriela also demanded for the nationalization of the country’s oil industry, citing the economic burden put on housewives in urban poor communities by the continued increase in LPG prices.
"LPG prices ranging from P346 to P356 per tank uses up about seven to 10 percent of the urban poor’s monthly budget," De Jesus said. "The increase in LPG prices may be felt only at least once a month but with the sharp increases, its effects is terribly felt by women who have to budget their below minimum wage family income."
Another group, meanwhile, said the government as well as the National Democratic Front (NDF) peace panels should also negotiate for the "immediate economic relief for the poor majority and struggling middle class" brought about by rising oil prices and other social-related issues.
This was the challenge posed by the Promotion of Church People’s Response (PCPR) as representatives from the government and the NDF - political wing of the Communist Party of the Philippines (CPP) - meet this week for the next round of formal peace talks.
According to the PCPR, talks this time should focus on social and economic reforms after the "significant breakthroughs" made by both panels in the Comprehensive Agreement on Respect for Human Rights and International Humanitarian Law.