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Don’t force govt hand: Oil firms warned over fuel 'rationing'


The government on Wednesday warned of harsher measures against oil firms if they resort to rationing their fuel supplies. Justice Secretary Agnes Devanadera said that while the government does not want to take over oil firms’ operations, the state may do so if "forced." "Kung ang pag-uusapan natin ay takeover, nakalagay rin ‘yan sa batas. Ang sinasabi ng batas: In times of emergency and when public interest so requires, nakalagay ang takeover. Pero wala namang intention ang gobyernong gawin yan. Ang gusto lang nito makaresponde lang ang oil companies sa pangangailangan ng ating mga kababayan. Sana ‘di humantong sa sitwasyon na gawin ang sapilitang hakbang," Devanadera said in an interview on dzBB radio. (A takeover is mandated under the law in times of emergency and when public interest so requires. Government has no intention of doing that, it just wants oil firms to do their part. We just hope oil firms don't force us to resort to these measures). She was referring to Section 14 (e) of the Oil Industry Deregulation Law that allows the Department of Energy (DOE) to temporarily take over or direct the operation of players in the fuel industry.

This was the basis of President Gloria Macapagal Arroyo's Executive Order 839, which instructed oil firms to roll back prices to October 15 levels in Luzon. “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," a provision of the law said. Rationing? Although oil firms followed Malacañang’s order, some of them (such as the Pilipinas Shell) have started limiting their sales, saying industrial users might take advantage of the situation. "We will temporarily disallow filling into containers and will just resort to filling up motorists’ tanks," said Roberto Kanapi of Shell. Upon the issuance of the EO 839, oil firms expressed fears they would resort to fuel rationing ahead of a possible supply shortfall. But Devanadera said the government is ready to thwart any move by oil firms to make an artificial shortage, adding that a DOE task force could force oil firms to open their records. "Susuriin natin kung talagang merong ganyang shortage. Pwede talagang maparusahan sila kung mapatutunayang 'di toto ang shortage (We can investigate if there is really a shortage. If we find that it is artificial, we will punish them)," she said, but did not elaborate on what punishment they can impose. Devanadera told oil companies not to resort to scare tactics, saying it is not government's intention to drive them out of business. She reassured them the executive order imposing price ceilings on fuel products in Luzon will be temporary, while Luzon recovers from the effects of cyclones "Ondoy" (Ketsana) and "Pepeng" (Parma). "Oil companies should not resort to scare tactics. Scaring the public and prompting [the] government to open your books is most unnecessary, especially if all you have to do is open your hearts," she said. "’Di hangarin ng pamahalaan na sila [ay] tanggalan ng negosyo. Sana huwag tayo humantong sa ganoong sitwasyon (It is not government's intention to drive them out of business. But government also does not want the situation to degenerate)," she added. - GMANews.TV