Overhaulin'

Refer to the article and comment on the impact of taxation and subsidies to the market.?

Article: Arroyo orders oil import tariff cut Published: Wednesday, 9 January, 2008, 02:24 AM Doha Time A petrol station attendant fills up a car in suburban Manila yesterday MANILA: Philippine President Gloria Macapagal Arroyo announced a cut in an import tariff on crude oil yesterday to reduce fuel prices, prevent a possible inflation spiral and appease transport workers threatening to go on strike. Arroyo said she will issue an order today to cut by 1% point to 2% the tariff on imported crude oil. “We will bring down the tariff on all petroleum products,” Arroyo told a televised news conference. Petrol stations were expected to implement the new prices within the next two weeks, she added. Arroyo said the tariff reduction would encourage oil companies to reduce the pump price of diesel, the fuel used by jeepneys—mini-buses which are the most popular mode of transport in the Philippines. Last month, transport groups held nationwide strikes to protest rising fuel prices and demanded the return of oil subsidies and the removal of a 12% sales tax on oil. They have threatened to hold another nationwide transport strike. Finance Secretary Margarito Teves said in the same briefing that the tariff on fuel products could be further cut by another 1% point if the price of Dubai crude went above $93 per barrel.The price of Dubai crude oil was around $91.70 a barrel yesterday. – Reuters

Public Comments

1. Sounds like a teeny weeny step in the right direction. If she doesn't cut it enough, kick her out of office. Elect someone more in tune with the common people.