Lifting price freeze can lead to abuse - VP De Castro

The government should be cautious before giving in to the request of oil companies to lift the controversial Executive Order 839 that put a cap on oil prices, Vice President Noli de Castro said on Wednesday. De Castro, who attended a closed-door meeting between the government's National Price Coordinating Council and the business sector, said lifting EO 839 could lure unscrupulous traders to take advantage of the situation. Using the law of supply and demand, traders could command prices of basic of commodities to shoot up while demand for them are high, De Castro was quoted as saying in a GMA Flash Report. Consumer and Oil Price Watch head Raul Concepcion, who was also present at the meeting, urged the oil firms not to make matters worse. "Huwag na tayo mang-alarma [Let us not cause the public to panic]," Concepcion said, referring to the statements of oil companies that EO 839 may lead to an oil supply shortage. The price freeze was imposed October 2 when the country was placed under a state of calamity to prevent businesses from raising prices of their goods while Filipinos reel from the effects of successive cyclones. During the NPCC meeting, recommendations were laid down for the government to consider, including a suggestion to localize price freeze. Under such scenario, the price cap would only be imposed in particular areas badly hit by typhoons in the last few months, including the Ilocos Region, Cagayan Region, and parts of Metro Manila. In response, Trade Secretary Peter Favila said he would consider the suggestions but asked for some time before his agency could decide whether to come up with a recommendation to lift EO 839 to be submitted to the Palace. - GMANews.TV