Senator warns: Profit caps on oil firms may backfire
Thursday, September 8, 2011
THROTTLING the Philippine oil industry’s profits could backfire and result in higher pump prices if petroleum companies choose to leave the country in response, the chairman of the Senate committee on energy said Thursday.
Senator Sergio Osmena III said a cap on the profits of petroleum firms, proposed by Senator Antonio Trillanes IV on Thursday morning, could backfire.
“Some would close shop and move to regimes where there are market rules,” he told Sun.Star in a text message.
Trillanes has proposed a 12-percent profit cap on the petroleum industry, saying pump prices affect the public interest. He said the measure is meant to “moderate the greed” of petroleum companies who have been perceived to be selling fuel at prices that do not reflect global oil prices.
This week, oil giants Pilipinas Shell and Chevron Philippines (Caltex) raised diesel and kerosene prices by P0.70 a liter and gasoline by P0.90, the third increase since August. A fourth price hike is expected on Friday.
Senators, including Trillanes and Ralph Recto, have criticized oil firms for being quick to raise prices but slow to cut them back when global oil prices decline.
“The problem is that, under the current deregulated system, the government is virtually helpless in checking the apparent abuses by petroleum industry players in increasing or refusing to decrease the prices of petroleum products even when warranted by market forces,” Trillanes said.
Any profit beyond the cap will be subject to a Windfall Profit Tax. Profits beyond 12 percent but less than 20 percent will be subject to a 50-percent windfall profit tax. Any more profit beyond that will carry a tax bill of 80 percent, Trillanes proposed.
“I believe that this measure would effectively discourage oil firms from further engaging in profiteering. Hopefully, it would provide our people with much needed relief from the endless rounds of oil price increases which we have seen in recent weeks,” Trillanes said.
He added that although the proposed windfall taxes are not primarily meant as a revenue-earning measure, the “incidental” benefit would be more money for public services.
But Osmena said Trillanes’s proposal may not be practicable.
“Windfall profits are only workable where there is a windfall (and) it is hard to determine their profits because of transfer pricing,” Osmena told Sun.Star.
Transfer pricing refers to the cost that one part of a company assumes for services or products bought from a separate part of the same company. Under transfer pricing, units within the same company are treated as separate entities.
Osmena has said that the Philippines, being a small economy, cannot dictate oil prices.
“If I were Shell, I’ll tell you that I will only import how many barrels a month, then I’ll give the rest to China. Anyway, China is paying my price,” he said at a press forum in April.
He said “the most expensive oil is no oil at all.”
The Philippine oil industry has been unregulated since 1998. Before that, an Oil Price Stabilization Fund was used to reimburse oil firms for under recoveries.
A member of Trillanes’ staff said the proposal does not have a counterpart bill at the House of Representatives, where tax bills are supposed to originate.
Sun.Star tried to reach Pilipinas Shell, Chevron Philippines, and Petron for comment but they did not respond.
Source: http://www.sunstar.com.ph/manila/local-news/2011/09/08/senator-warns-profit-caps-oil-firms-may-backfire-178267
TRALIER ONE
Clark Wine Center was built in 2003 by Hong Kong-based Yats International Leisure Philippines to become the largest wine shop in Philippines supplying Asia’s wine lovers with fine vintage wines at attractive prices. Today, this wine shop in Clark Philippines offers over 2000 selections of fine wines from all major wine regions in the world. As a leading wine supplier in Philippines, Pampanga’s Clark Wine Center offers an incomparable breadth of vintages, wines from back vintages spanning over 50 years. Clark Wine Center is located in Pampanga Clark Freeport Zone adjacent to Angeles City, just 25 minutes from Subic and 45 minutes from Manila.
Wines from Burgundy, Bordeaux, Rhone, Loire, Spain, Portugal, Germany, Austria, Alsace, USA, Australia, New Zealand, Italy, South Africa, Chile and Argentina etc. are well represented in this Clark Wine Shop.
This is one of the frequently visited places for wine lovers from Manila and Angeles City to buy international wines in Pampanga.
http://www.ClarkWineCenter.com
Getting to this wine shop in Pampanga Angeles City Clark Freeport Zone Philippines from Manila
Getting to the Clark Wine Center wine shop from Manila is quite simple: after entering Clark Freeport from Dau and Angeles City, proceed straight along the main highway M A Roxas. Clark Wine Center is the stand-along white building on the right, at the corner A Bonifacio Ave. From the Clark International Airport DMIA, ask the taxi to drive towards the entrance of Clark going to Angeles City. From Mimosa, just proceed towards the exit of Clark and this wine shop is on the opposite side of the main road M A Roxas.
Clark Wine Center
Bldg 6460 Clark Observatory Building
Manuel A. Roxas Highway corner A Bonifacio Ave,
Angeles Clark Freeport Zone, Pampanga 2023
(045) 841 4006 / 0922-870-5173 / 0917-826-8790 (ask for Ana Fe)
Manila Sales Office
3003C East Tower, Phil Stock Exchange Center,
Exchange Rd Ortigas Metro Manila, Philippines 1605
(632) 637-5019 0917-520-4393 ask for Rea or Chay
Best place to buy wine in Clark Pampanga outside Manila near Subic and Angeles City Philippines is Clark Wine Center.
Wedding couples looking for wedding reception venues and beach wedding venues can log on to this Philippines Wedding Venue web site for free information and assistance:
http://www.PhilippinesWeddingVenue.com
While in Clark, it might be a good idea to enjoy an evening of wine-and-dine in the fine dining Yats Restaurant and Wine Bar that features an award winning 2700-line wine list. It is located in Mimosa Leisure Estate of Clark Freeport Zone. For more information, visit http://www.YatsRestaurant.com
YATS Leisure Philippines is a developer and operator of clubs, resorts and high-class restaurants and wine shops in Clark Angeles Philippines http://www.yatsleisure.com
Looking for interesting hotels near Manila Subic Clark Angeles City Pampanga?
Trouble free hotels and well recognized hotels in Subic Clark Angeles City Pampanga
Clearwater Resort and Country Club offers a good place to stay in Subic Clark Angeles City Pampanga. In offers nice place to have rest in Subic Pampanga outside Manila.
One of the Philippines top hotels in north Luzon.
Looking for a restaurant in Clark for a Business meeting? Or a place to eat with friends? Yats Restaurant offers exclusive dinner venue for groups, a good place to celebrate special occasions, it can be a party venue in town. Yats Restaurant is a recommended restaurant for private dinner in Philippines, a well-recognized restaurant that serves good food and good wines for dinner.
Looking for famous tourists spots, places to visit and see, relax and unwind in Clark, Pampanga, Philippines? You may want to check out these sites also:
http://www.HotelClarkPhilippines.com
http://www.ClarkPhilippines.com
http://www.YatsWineCellars.com
Yats Restaurant is the best restaurant for special dinner, best restaurant for dinner with friends near Manila, also the best place to celebrate special events.
Famous Restaurant in Pampanga, a place to dine with friends in Clark, cozy restaurant with a nice ambience, a nice function place for special occassions
Are you looking for an attractive restaurant or a nice place to eat with friends in Clark, Angeles City Pampanga? Yats Restaurant and Wine Bar is a restaurant with good food and good wines for dinner located at Clark Angeles City Pampanga. Perfect for exclusive dinner venues for groups, recommended for private dinner in Philippines. A Restaurant in Clark for business dinner meeting. Private dinner place or dinner restaurant in Clark Subic Near Manila Angeles City Pampanga. Yats Restaurant is one of the Good Restaurant in Pampanga Angeles City Clark near Manila.
www.YatsRestaurant.com
Where to go in Clark? Hotel Clark Philippines is a De Luxe Hotel in Clark and Subic, a risk free place to stay, cozy and nice ambience, a nice function place for special occasion. It is one of North Luzon Philippines’ top hotels that is trouble free, risk free, and a nice place to have rest in Subic. A well-recognized and interesting hotel.
www.HotelClarkPhilippines.com
You can skip to the end and leave a response. Pinging is currently not allowed.
