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Govt to oil firms: Keep your promises or else...


President Gloria Macapagal Arroyo will not hesitate to re-impose the freeze on fuel prices in Luzon if oil companies will renege on their promise to stagger increases in the prices of their products, a Palace official said on Sunday. In a radio interview, deputy presidential spokesman Gary Olivar said Malacañang is holding on to the promises made by the oil firms in a meeting last November 13, which resulted to the government agreeing to lift the oil price freeze in Luzon starting Monday. “I am sure with happened, things have become clearer for the oil industry and the public and now they understand that the President has the political will to make decisions for the benefit of the people," Olivar said. Present during the meeting were President Arroyo, representatives from oil companies, business sector, transport and labor organizations. Olivar said that during the meeting, oil companies promised to give fuel discounts to the transport sector and other forms of assistance to people affected by recent cyclones. “We expect the oil industry to come out with programs such as discounts to those affected by the calamity. They promised to stagger the recovery of their losses and they will continue to be transparent and cooperative with government because their business is very important to the country," Oliver said. President Arroyo reminded the oil firms Friday that they should stagger the recovery of their losses from the price freeze order that pegged prices at Oct. 15 levels for about three weeks. Oil companies claimed that they lost at least about P1 billion. Aside from the oil price freeze, the price control on basic commodities will also be lifted effective Monday. Oliver said there was factual basis to impose price ceilings because of the state of calamity in Luzon. He said this intervention is also backed by presidential powers under the Constitution. President Arroyo last month issued Executive Order 839, which fixed fuel prices at October 15 levels in Luzon in the wake of oil price increases even as the country reeled from the effects of two calamities.- GMANews.TV

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