House panel to summon oil firms to explain LPG 'shortage'

MANILA, Philippines - A House of Representatives panel is set to summon major oil firms as well as new oil players to explain the reported shortage in liquefied petroleum gas (LPG) supply. In a press statement, House energy committee chair and Pampanga Rep. Juan Miguel Arroyo on Tuesday said LPG distributors must shed light on the reported shortage citing the demand for LPG in many households, businesses, and even public utility vehicles. The first hearing on the matter is tentatively set for February 3. "We have to be very careful in making speculations that may affect our economy. If there is really such a shortage, we have to know the extent and identify how it will affect the price of electricity and the public transport sector," Arroyo said. Earlier in the day, Consumer and Oil Price Watch chair Raul Concepcion said a House probe into the reported LPG supply is a welcome development, amid some oil companies' plan to increase LPG prices. Concepcion said lawmakers may have to review Republic Act 8479 or the Oil Deregulation Law, which prevents the government from interfering with how the downstream oil industry price its products. Liquefied Petroleum Gas Marketers Association (LPGMA) president Arnel Ty had earlier said they may hike the prices of their products by P3 to P4 per kilogram on February if oil firms buy LPG from suppliers at a higher price this coming week. - Johanna Camille Sisante, GMANews.TV