Estrada blames Ramos for oil price hikes

Ousted President Joseph Estrada blamed yesterday his predecessor former President Fidel Ramos for the skyrocketing prices of oil products in the country.

“Despite the fact that Petron is the only government-owned corporation earning money during the Ramos administration, they sold it,” he said.

“Had Petron not been sold, the government can haggle the prices of oil products and it can even cartel the prices of gasoline and other oil products.”

Tracking global price trends, local pump prices have been rising as world crude prices soared to $100 a barrel.

Estrada said the Ramos administration contracted the Independent Power Producers (IPPs), which are causing suffering to the poor.

“He (Ramos) approved 28 IPPs, in favor of the producers, amounting to P7.4 billion,” he said. “Whether we use it or not, we are paying for it. That is a sovereign guarantee.”

Estrada said when he was president, he blocked the IMPSA (Industrias Metallurigcas Pescarmona Sociedad Anoninma) deal because it would need a sovereign guarantee.

“I did not give any sovereign guarantee on any private contract during my presidency,” he said.

“They are making a milking cow out of government coffers through the sovereign guarantee.”

Estrada said a sovereign guarantee assured businessmen without capital of continued operation because they could easily get credits from banks.

“The sovereign guarantee is an assurance that businessmen can get credits from banks without capital,” he said.

“That is why I removed that. It became my policy when I was president not to issue sovereign guarantees to any private contracts. Ramos had issued many sovereign guarantees during his administration.”  –Jose Rodel Clapano