Arroyo can reimpose price cap on fuel, Palace warns
11/19/2009 | 03:05 AM
Malacañang on Wednesday warned that President Arroyo would not think twice about reimposing the price cap on fuel products in order to prevent oil firms from abruptly increasing their pump prices.
The warning was issued by Executive Secretary Eduardo Ermita after five oil firms, including major player Pilipinas Shell and Petron Corp., raised their prices two days after Executive Order 839 was lifted.
“As necessary, nothing will prevent the President from issuing another EO...We hope we don't have to resort to that but we have to think of the good of the majority," Ermita said, adding that the “government is not left without authority" despite the oil-deregulated environment.
Before President Arroyo left to attend the Asia-Pacific Economic Cooperation (APEC) summit in Singapore last Friday, oil companies made a commitment not to increases prices abruptly. They likewise vowed to continue providing discounts to areas devastated by cyclones Ondoy and Pepeng.
On Tuesday night, however, oil giants Petron Corporation, Pilipinas Shell and Chevron Philippines, and independent fuel firms Eastern Petroleum and Flying V, announced another round of price increases in petroleum products. [See: (Update) 4 oil firms to hike fuel prices Wednesday]
Effective 12:01 a.m. Wednesday, Shell, Petron and Chevron imposed the following price hikes on their petroleum products: an additional P1.50 per liter on gasoline and kerosene, P2 per liter on diesel and P2 per kilogram on liquefied petroleum gas.
Meanwhile, Eastern Petroleum and Flying V announced they will hike prices of their diesel products by P2 a liter and their gasoline products to P1.25 and P1.50 per liter, respectively, starting Wednesday.
Although he insists that there is still no need to implement stricter measures, Ermita reminded oil players that the Trade department has teams deployed on the ground to monitor the “ill-effects" of higher oil prices on basic commodities.
The Transportation department has been likewise tasked to report on the effects of oil adjustments on transport fares, he said.
Ermita added that the government would not hesitate to reactive the joint task force of the Energy and Justice departments to monitor “unreasonable" price adjustments and investigate the oil firms’ books if necessary. – Aie Balagtas See, GMANews.TV
The warning was issued by Executive Secretary Eduardo Ermita after five oil firms, including major player Pilipinas Shell and Petron Corp., raised their prices two days after Executive Order 839 was lifted.
“As necessary, nothing will prevent the President from issuing another EO...We hope we don't have to resort to that but we have to think of the good of the majority," Ermita said, adding that the “government is not left without authority" despite the oil-deregulated environment.
Before President Arroyo left to attend the Asia-Pacific Economic Cooperation (APEC) summit in Singapore last Friday, oil companies made a commitment not to increases prices abruptly. They likewise vowed to continue providing discounts to areas devastated by cyclones Ondoy and Pepeng.
On Tuesday night, however, oil giants Petron Corporation, Pilipinas Shell and Chevron Philippines, and independent fuel firms Eastern Petroleum and Flying V, announced another round of price increases in petroleum products. [See: (Update) 4 oil firms to hike fuel prices Wednesday]
Effective 12:01 a.m. Wednesday, Shell, Petron and Chevron imposed the following price hikes on their petroleum products: an additional P1.50 per liter on gasoline and kerosene, P2 per liter on diesel and P2 per kilogram on liquefied petroleum gas.
Meanwhile, Eastern Petroleum and Flying V announced they will hike prices of their diesel products by P2 a liter and their gasoline products to P1.25 and P1.50 per liter, respectively, starting Wednesday.
Although he insists that there is still no need to implement stricter measures, Ermita reminded oil players that the Trade department has teams deployed on the ground to monitor the “ill-effects" of higher oil prices on basic commodities.
The Transportation department has been likewise tasked to report on the effects of oil adjustments on transport fares, he said.
Ermita added that the government would not hesitate to reactive the joint task force of the Energy and Justice departments to monitor “unreasonable" price adjustments and investigate the oil firms’ books if necessary. – Aie Balagtas See, GMANews.TV
