NEWS RELEASE
January 13, 2000

The multisektoral Kontra Kartel today said the oil companies again had their way with Malacanang's pronouncement that it was not supporting the oil exchange bills filed by Cong Enrique Garcia at the House and Juan Ponce Enrile at the Senate.

Earlier, President Estrada publicly came out in support of the proposal aimed at establishing a mechanism for the centralized procurement and bidding of the country's oil requirements. Such a move could weaken the oil cartel's hold on the industry.

But yesterday (January 12), he had obviously reversed his position as per advice by the newly-created Economic Coordinating Council (ECC). This was confirmed by Exec. Sec. Ronaldo Zamora.

"This just goes to show that the Estrada government is not interested in breaking the oil monopoly of the Big 3 (Shell, Caltex and Petron) and is in fact working in their favor. Once again, we see how close the oil cartel is to the presidential ear," said Kontra Kartel Spokesperson Carol Almeda.

The Kontra Kartel, composed of various people's organizations and consumer groups, came out last year in support of Garcia's proposal, saying it was a positive step towards ending Big 3's monopoly operations and towards nationalizing the oil cartel.

"Whenever the interest of the oil cartel is at stake, the Estrada government always sides with the them. Contrary to the pronouncements of Estrada, there are many things the government can do to dismantle the oil cartel. Unfortunately, because the government is beholden to the powerful oil lobby, it refuses to implement reforms which would adversely affect the oil cartel," said Almeda.

She said the Kontra Kartel, which is campaigning for the rollback of oil prices, the junking of the oil deregulation law, and the dismantling of the oil cartel, is getting ready for nationwide mass actions when the oil companies push another round of price increases. ###