Manila: Transport and consumer groups are poised to conduct a nationwide strike on Wednesday in protest against continuing hikes in fuel prices as well as the government's refusal to take measures to cushion the oil shock.

George San Mateo, national president of the national federation of drivers and operators nationwide or Piston said demonstrators from their union as well as their allied organisation would take to the streets in 15 of the country's key cities. The mass action coincides with celebration of International Consumer Rights Day.

San Mateo mentioned the urban centres where the demonstrations will be carried out as Metro Manila, Santiago in Isabela; Baguio City in the north; San Pedro, Laguna and Legaspi City in Southern Luzon; Iloilo City; Roxas City, Capiz; Mandaue City, Cebu City; Dumaguete City; Bacolod City in Central Philippines as well as Butuan; Cagayan de Oro City; General Santos City; and Davao City in Southern Philippines.

Filipino consumers and transport groups had been reeling from unabated fuel price increases in recent weeks brought about by political developments abroad. While the Philippines has developed its own sources of fuel, particularly natural gas, the country's economy is still highly dependent on the import of petroleum products, particularly diesel and petroleum.

The country imports at least 85 per cent of its fuel oil requirements from abroad. Any increase in prices has an immediate reflection on cost of basic commodities. According to San Mateo, the transport sector will call on the oil companies to roll back prices by P9 (77 Fils) in diesel and P10 (86 Fils) in petrol.

Piston is one of the biggest transport unions in the country and include mostly passenger jeep drivers and operators. Other similar federations have yet to announce if they are joining the strike.

Government action

Meanwhile, the left-wing mass organisation, the Bagong Alyansang Makabayan or New Nationalist Alliance (Bayan) said that the government needs to take action on the rising cost of fuel and its effects on consumers.

"We believe that the government must step in and do something about high oil prices, whether this is through the removal, suspension or reduction of the VAT (Value Added Tax) on oil or other measures," said Bayan secretary-general Renato M. Reyes, Jr.

The government imposes 12 per cent VAT on commodities including petroleum products.