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Have we been duped?

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First Gas blames ‘royalty’ taxes for high power costs

Power provider, First Gas Power Corporation testified before congress today and explained that government taxes take as much as 2 pesos per kilowatt hour. Meralco currently charges P4.30 so removing the tax will actually cut power costs by half.

It was also added that fuel costs are also driven by high taxes compared to what is taxed on imported fuel. Thus discouraging anyone to explore locally available alternative fuels.

Regionally, the Philippines has the highest taxes imposed on fuels.

So what does this mean for us? We’ve been duped into a big corporate conspiracy and everyone is in on it.

Think about it? “Campaign donations” given by large corporations to candidates in elections make sure that these laws remain in place. Foreign oil companies make sure that these taxes are in place to further remain in the country. Oh the horror that may happen that the Philippines, a natural geothermal country (all those volcanoes have other common uses other than hot springs) does not use geothermal energy.

Could the government inadvertently have dug up it’s own secret?

That all these years since the Romualdez family took over Meralco from the Lopezes in the 70s during martial law have set in motion events that would keep us tied to imported fuels that only three companies control? (BTW, electricity didn’t cost this much back then, and it’s not due to the exchange rate)

That we have actually been paying taxes that could have been used to develop our own natural fuels?

If our legislative is working, after all of this, they should reduce taxes imposed on local fuels. But will it happen? Prove me wrong. Prove to me that they will revisit these laws and cut the taxes. If they don’t make laws that remedy this, they don’t have any right to be where they are.

In this age of Global warming and calls for reduced consumption of fossil fuels, will our government not make this change? In the end changes to this will allow us to explore cheaper and probably cleaner sources of energy.

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Written by pinoypatrol

May 29, 2008 at 11:41 am

Posted in electricity, Gas

Tagged with , , ,