There is no conflict between a new executive order freezing fuel prices to October 15 levels and the oil deregulation law, Malacañang insisted Monday. But Malacañang also said it will leave to Energy Secretary Angelo Reyes the task of identifying and punishing oil firms that will violate Executive Order (EO) 839. “Baka sinasabi nila [oil players] na deregulated ang oil industry; merong isang provision sa Oil Deregulation Act na nagsasabing in cases of emergency maaaring i-manage ng pamunuan ng DOE ang presyo ng krudo (Even the oil deregulation law allows that in cases of emergency, the Department of Energy can manage prices of fuel)," Press Undersecretary Anthony Golez Jr. said in an interview on dwIZ radio. EO 839 orders oil companies to keep the prices of all petroleum products temporarily at October 15 levels, until the state of calamity imposed on Luzon is lifted. It cites Section 14 (e) of the oil industry deregulation law that allows the DOE to temporarily take over or direct the operation of players in the fuel industry.
“In times of national emergency, when the public interest so requires, the DOE may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any person or entity engaged in the industry," the law said. On the other hand, Golez said the Palace expects Reyes to call representatives of the oil firms to a meeting to remind them about EO 839.
“Siguro si Sec. Reyes
ang makapagsasabi. Pupulungin ni Sec. Reyes
ang mga players
ng industrya ng petrolyo nang sa ganoon magkaroon ng efficient
na pag-uusap sa pag-implement
ng EO
na ito (We expect Reyes to meet with representatives of the oil firms to make the EO clear to them)," he said. He noted that President Arroyo signed Executive Order 839 only last Friday, and government offices were closed during the weekend. Golez noted Mrs. Arroyo had placed the country under a state of calamity in the wake of tropical cyclones “Ondoy" (Ketsana) and “Pepeng" (Parma). She eventually lifted the state of calamity in Visayas and Mindanao, but retained it in Luzon, which bore the brunt of damage caused by the cyclones. [See:
State of calamity lifted in Visayas and Mindanao] When asked what consequences violators should face for ignoring the EO, Golez said it is up to Reyes.
“Si Sec. Reyes
ang makapagsasabi niyan (Reyes can comment on that)," he said. Reyes had been accused by some militant transport groups demanding price rollbacks of siding with oil companies. According to a report by GMA News' Julius Segovia, big players Pilipinas Shell and Petron Corp. have yet to issue statements on the price freeze. Chevron Philippines, meanwhile, said it will still study the executive order. While some small players said they will comply with the EO, their officials said a prolonged price freeze might endanger oil supply. "We'll have to exercise this as part of our corporate social responsibility," said UniOil general manager Luisito Medina-Cue Jr. "[But] If it's a loss, they (oil companies) will slow down selling and supply may be dwindling down," Medina-Cue added. On Sunday night, UniOil implemented a price rollback of P2/liter for diesel, P1.25/l for gasoline, and P1.50/l for kerosene in accordance with the EO. Fellow independent firm Flying V also said it would abide by the EO, but that it should not last longer than necessary. "We feel that's a form of sacrifice on our part to also help our fellow countrymen who were affected by the recent typhoons, and we just hope this won't be for long," said Jose Victor Cruz, Flying V vice president. "If it will be longer than we expect then it's going to have an impact on supply because we cannot sell at a loss," Cruz said. Obet Martin, spokesperson for transport group Pasang Masda, urged the oil companies to set aside concerns for profits for now.
"Wag muna natin isipin yung tayo'y kumita. Ang isipin nalang natin ay makapagserbisyo't makadulot tayo ng ginahawa sa mga biktima ng bagyong "Pepeng"
at "Ondoy" (Let us not think of profit for now. Let's just keep in mind that we are helping those affected by cyclones Pepeng and Ondoy)," said Martin.
- with a report from Johanna Camille Sisante, GMANews.TV 
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