Luzon oil shortage reported as govt reviews fuel price cap
11/10/2009 | 03:29 PM
Fuel shortages have been reported in three provinces on Tuesday, the same day that the government announced that it will review the state of calamity declaration that was used to justify an oil price freeze in Luzon.
“The first step will be for the [National Disaster Coordinating Council] to determine if there is still a state of calamity," said Augusto B. Santos, officer-in-charge of the National Economic and Development Authority (NEDA).
He made this announcement over radio dzRB after reporters asked him about the impact of Executive Order 839, which fixed fuel prices at October 15 levels in Luzon in the wake of oil price increases even as the island reeled from the effects of two calamities.
A state of calamity declaration calls for a price cap on basic commodities, including oil, and allows the national government to allot additional disaster funds for local government units.
On Tuesday, QTV’s Balitanghali reported that gasoline stations from Lucena City in Quezon province to as far as Guinubatan in Albay province, have started putting up signs with the words “Out of stock."
The province of Batangas, where several oil companies maintain their depots, has also been experiencing a shortage in petroleum supply after the presidential edict was imposed.
But Santos downplayed concerns of a supply shortage, saying the level of oil inventories – seen to last anywhere from eight to 13 days – is “not a cause for worry."
The government does not necessarily believe that fuel supplies will run dry after 13 days, he added, contradicting an announcement made by the Department of Energy (DOE) on Monday.
EO 839 has been criticized by local and foreign business groups, which said that artificially setting prices will lead to an oil supply shortage which is already being felt in several provinces in Batangas, Quezon, and Albay.
Since the price freeze, gas stations in Batangas have closed shop at 10 p.m. to save up on supply, instead of completing their usual 20-hour daily operation, a report by GMA News' JP Soriano in QTV's Balitanghali said.
Sales of diesel products also remain limited in other parts of Lucena City and Sariaya town.
At a Petron gas station in Lucena, only new supplies of gasoline, and not diesel, arrived Monday night. This has affected the operations of tricycle drivers and farmers, who both rely on diesel to run their vehicles and equipment.
"Hindi kami makakapag-ani ... mape-pending ang paga-ani dahil walang gagamiting tracer at blower," said farmer Edwin Basid.
Staff from provincial oil stations interviewed by GMA News said they were expecting petroleum supplies to arrive within the week, but remain doubtful whether it would be enough to match the local demand.
"Mahirap ito. Walang pasok, walang pera, wala ring kita iyon," said Vicvic Nacional, a cashier at a Shell station in Lucena City.
Energy chief’s resignation sought
In a related development, Parañaque Rep. Roilo Golez on Tuesday asked Energy Secretary Angelo Reyes to resign for failing to perform his duties.
Golez said in a radio interview that Reyes failed to observe the existing energy supply doctrine, which dictates that the safe energy level for oil products in the Philippines was around 50 to 60 days.
But Reyes only made an announcement of a possible shortage on Monday, when oil inventories were expected to run out in eight to 13 days. [See: Govt sets stage for fuel price cap revocation]
In response, Reyes said it was better that he revealed the possible shortage earlier than surprise the public at a much later time.
For the fourth time, Reyes failed to appear during an oil case hearing at the Manila Regional Trial Court.
The non-appearance of Reyes, who had been subpoenaed to testify in a case filed by the citizens' group Social Justice Society against major oil firms, came with a consent from Judge Silvino Pampilo. [See: Court allows Reyes to skip next hearing vs oil firms]
Pampilo said Reyes, who asked permission not to attend because of a Cabinet meeting in Bohol, has promised to show up in the next hearing Wednesday. - with Mark D. Merueñas, GMANews.TV
“The first step will be for the [National Disaster Coordinating Council] to determine if there is still a state of calamity," said Augusto B. Santos, officer-in-charge of the National Economic and Development Authority (NEDA).
He made this announcement over radio dzRB after reporters asked him about the impact of Executive Order 839, which fixed fuel prices at October 15 levels in Luzon in the wake of oil price increases even as the island reeled from the effects of two calamities.
A state of calamity declaration calls for a price cap on basic commodities, including oil, and allows the national government to allot additional disaster funds for local government units.
On Tuesday, QTV’s Balitanghali reported that gasoline stations from Lucena City in Quezon province to as far as Guinubatan in Albay province, have started putting up signs with the words “Out of stock."
The province of Batangas, where several oil companies maintain their depots, has also been experiencing a shortage in petroleum supply after the presidential edict was imposed.
But Santos downplayed concerns of a supply shortage, saying the level of oil inventories – seen to last anywhere from eight to 13 days – is “not a cause for worry."
The government does not necessarily believe that fuel supplies will run dry after 13 days, he added, contradicting an announcement made by the Department of Energy (DOE) on Monday.
EO 839 has been criticized by local and foreign business groups, which said that artificially setting prices will lead to an oil supply shortage which is already being felt in several provinces in Batangas, Quezon, and Albay.
Since the price freeze, gas stations in Batangas have closed shop at 10 p.m. to save up on supply, instead of completing their usual 20-hour daily operation, a report by GMA News' JP Soriano in QTV's Balitanghali said.
Sales of diesel products also remain limited in other parts of Lucena City and Sariaya town.
At a Petron gas station in Lucena, only new supplies of gasoline, and not diesel, arrived Monday night. This has affected the operations of tricycle drivers and farmers, who both rely on diesel to run their vehicles and equipment.
"Hindi kami makakapag-ani ... mape-pending ang paga-ani dahil walang gagamiting tracer at blower," said farmer Edwin Basid.
Staff from provincial oil stations interviewed by GMA News said they were expecting petroleum supplies to arrive within the week, but remain doubtful whether it would be enough to match the local demand.
"Mahirap ito. Walang pasok, walang pera, wala ring kita iyon," said Vicvic Nacional, a cashier at a Shell station in Lucena City.
Energy chief’s resignation sought
In a related development, Parañaque Rep. Roilo Golez on Tuesday asked Energy Secretary Angelo Reyes to resign for failing to perform his duties.
Golez said in a radio interview that Reyes failed to observe the existing energy supply doctrine, which dictates that the safe energy level for oil products in the Philippines was around 50 to 60 days.
But Reyes only made an announcement of a possible shortage on Monday, when oil inventories were expected to run out in eight to 13 days. [See: Govt sets stage for fuel price cap revocation]
In response, Reyes said it was better that he revealed the possible shortage earlier than surprise the public at a much later time.
For the fourth time, Reyes failed to appear during an oil case hearing at the Manila Regional Trial Court.
The non-appearance of Reyes, who had been subpoenaed to testify in a case filed by the citizens' group Social Justice Society against major oil firms, came with a consent from Judge Silvino Pampilo. [See: Court allows Reyes to skip next hearing vs oil firms]
Pampilo said Reyes, who asked permission not to attend because of a Cabinet meeting in Bohol, has promised to show up in the next hearing Wednesday. - with Mark D. Merueñas, GMANews.TV
