Be true, faithful to petroleum prices, Palace tells oil firms

Malacañang on Wednesday asked oil companies to “be true or stay faithful" to the prices of their petroleum products, saying the government is closely monitoring the price adjustments. “Alam naman po natin iyong nagiging movement in the world market dahil nga po doon sa nagging kaguluhan sa Libya. Ang masasabi po natin sa kanila is [to] just be true or stay faithful sa cost po nila talaga at kung ano iyong presyong dapat nilang hingin sa mga consumers po natin," presidential deputy spokesperson Abigail Valte told reporters. As of Wednesday, the price hikes implemented by Philippine based oil firms are within the computations of the government, Valte said, quoting Energy Secretary Rene Almendras. Senator Ralph Recto, Senate ways and means committee chairman, on Tuesday said oil companies are unfairly and unnecessarily raising the prices of fuel products amid the unrest in North Africa and the Middle East. Valte said the government can do nothing now to ease the price hikes due to the volatility of the situation in the world market. “Hindi lang naman po tayo ang bansa na tumataas ang presyo ng petrolyo dahil apektado naman po iyong mga countries na nag-iimport ng petrolyo dahil sa unrest sa Libya," Valte said. She also quoted Energy Undersecretary Jose Layug Jr. as saying that the price increases already in place were just half of the allowable levels that oil companies can raise their petroleum products. Almendras is open to have a meeting with the Consumer Price Watch of Raul Concepcion to discuss their differences in the computations, according to the deputy spokesperson. On the renewed calls to regulate the oil industry, Valte said it would take time because the government has limited resources to take over the industry. “It will take a big amount of money from the government to fully subsidize, to take over the oil industry… Kakaunti yung pondo, kakaunti 'yung infrastructure ng government," she said. “From what I understand, ‘yung mga bansa na nagsa-subsidize din ng kanilang oil tumitigil na rin sila dahil talagang masyadong mataas ‘yung cost," Valte added. — VS, GMA News