DOJ chief chides oil firms over supply shortage ‘threat’
10/27/2009 | 09:59 AM
Justice Secretary Agnes Devanadera chided oil firms on Tuesday for saying the recent imposition of fuel price controls may cause a shortfall in supply, and asserted that the price freeze was timely and necessary.
After oil firms raised concerns that the price freeze would put a dent on profits and ultimately cause supply shortage if it goes on for a long time, Devanadera assured oil players that the government would not be "unreasonable" in its order to keep oil prices at October 15 levels.
“Di magiging unreasonable ang pamahalaan, naintindihan ng pamahalaan. 'Di tayo naglalayong pumatay ng negosyo (The government will not be unreasonable. It's not out to put anyone out of business)," Devanadera said in an interview on dzXL radio.
"Ating tinitingnan na sa ganitong pagkakataon dapat may sakripisyo rin ng mga kinauukulan (The situation calls on all concerned to make sacrifices)," she added. "Rest assured, the oil companies, this will not be an unreasonable imposition by the national
government."
Last Friday, President Gloria Macapagal Arroyo signed Executive Order 839 that rolled back fuel prices to October 15 levels in Luzon, which remains under a state of calamity due to recent cyclones that hit the area.
While some oil firms complied with the EO, they also expressed concerns that a prolonged price freeze might threaten supply because companies cannot continue selling "at a loss." [See: Palace vows iron fist vs firms violating oil price freeze order]
Devanadera pointed out that while the government could have taken over the oil firms' operations, it chose not to do so.
“Authorized ang government mag-takeover. Pero 'di natin gagawin 'yan sa ganitong panahon dahil ang nais lang natin ay damdamin ng oil companies ang kalagayan ng ating mamamayan na naghihirap dahil sa devastation ng typhoons (Government is authorized to take over operations of the oil companies under the circumstances
but we will not do it. Our objective is not to take over oil companies but to ease the plight of people devastated by recent cyclones)," Devanadera said.
“This is of temporary nature and this is being done in response to extreme difficulties our people are in as a result of these typhoons. Why are oil firms making it look so difficult?" she added.
Devanadera said the government is ready to answer any legal action the oil firms may take.
EO 839 cites Section 14 (e) of the oil industry deregulation law that says, "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." - with a report from Johanna Camille Sisante, GMANews.TV
After oil firms raised concerns that the price freeze would put a dent on profits and ultimately cause supply shortage if it goes on for a long time, Devanadera assured oil players that the government would not be "unreasonable" in its order to keep oil prices at October 15 levels.
“Di magiging unreasonable ang pamahalaan, naintindihan ng pamahalaan. 'Di tayo naglalayong pumatay ng negosyo (The government will not be unreasonable. It's not out to put anyone out of business)," Devanadera said in an interview on dzXL radio.
"Ating tinitingnan na sa ganitong pagkakataon dapat may sakripisyo rin ng mga kinauukulan (The situation calls on all concerned to make sacrifices)," she added. "Rest assured, the oil companies, this will not be an unreasonable imposition by the national
government."
Last Friday, President Gloria Macapagal Arroyo signed Executive Order 839 that rolled back fuel prices to October 15 levels in Luzon, which remains under a state of calamity due to recent cyclones that hit the area.
While some oil firms complied with the EO, they also expressed concerns that a prolonged price freeze might threaten supply because companies cannot continue selling "at a loss." [See: Palace vows iron fist vs firms violating oil price freeze order]
Devanadera pointed out that while the government could have taken over the oil firms' operations, it chose not to do so.
“Authorized ang government mag-takeover. Pero 'di natin gagawin 'yan sa ganitong panahon dahil ang nais lang natin ay damdamin ng oil companies ang kalagayan ng ating mamamayan na naghihirap dahil sa devastation ng typhoons (Government is authorized to take over operations of the oil companies under the circumstances
but we will not do it. Our objective is not to take over oil companies but to ease the plight of people devastated by recent cyclones)," Devanadera said.
“This is of temporary nature and this is being done in response to extreme difficulties our people are in as a result of these typhoons. Why are oil firms making it look so difficult?" she added.
Devanadera said the government is ready to answer any legal action the oil firms may take.
EO 839 cites Section 14 (e) of the oil industry deregulation law that says, "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." - with a report from Johanna Camille Sisante, GMANews.TV
