DOE taps SGV, UAP to assess data on oil firms

The Department of Energy (DOE) is tapping the services of auditing firm Sycip, Gorres and Velayo (SGV) & Co. and the University of Asia-Pacific (UAP) for the assessment of data on the financial operations of the oil companies and the transport sector.

Energy Secretary Angelo T. Reyes said this initiative would develop a program to counter the effects of rising oil prices in the world market.

He said it would enable the government to adopt a realistic program to alleviate the domestic impact of rising global prices of crude oil, particularly on the industrial and transportation sectors.

The DOE chief said the data to be collected would enable the government to assess the impact of the price of oil on the economy.

He said that the effect of high prices of oil on industry is estimated at only three to five percent, while the transportation sector is claiming between 25 to 30 percent on their gross income. Jeepney and other public utility drivers estimate their gross income at only P6,000 a month.

In addition, Reyes said the drivers complain that they pay an average of P1,000 a week for “kotong” or P4,000 monthly in bribes to traffic enforcers. Because of the operations of illegal PUVs or kolorum that take away their passengers, they lose another P3,000 a month.

Reyes said the drivers assured the DOE that they would not demand for an increase of public transportation fares even if the prices of gasoline and diesel go up because their take home pay anyway would increase if kotong activities and kolorum operations are stopped.

President Arroyo recently formed the Presidential Task Force Kontra Kotong and Kolorum (PTF-FFF) to go after petty road extortionists and illegal public transportation operations.

On his visit to the Metro Manila Development Authority impounding compound in Pasig City yesterday, Reyes found that more than 100 vehicles, including luxury buses and even a Mercedes Benz, had been impounded for illegally operating as PUVs.

Reyes said that aside from depriving legitimate drivers and operators of income, kolorum operators cheat the government of taxes, license fees and taxes which they do not pay because they are operating underground, without permits or franchises.