Palace scolds oil firms over price freeze

Malacañang on Friday told oil firms to refrain from painting bleak scenarios in relation to the oil price freeze while reiterating that the two government agencies tasked at implementing the directive are constantly monitoring the situation.

“We appeal to them (oil companies) to stop giving grim warnings because these won’t help,” Press Secretary Cerge M. Remonde told Palace reporters.

Oil firms and business groups have earlier raised their concerns over the implementation of Executive Order 839.

The Oct. 23 directive capped prices of petroleum products in Luzon to levels as of Oct. 15, a few days before oil companies raised prices by as much as P2 per liter.

Malacañang cited the existence of a state of calamity in Luzon, parts of which had been devastated by two strong storms just weeks earlier.

The affected sectors said oil firms are likely to divert supplies to Visayas and Mindanao where the directive is not implemented so as to avoid selling at a loss, while foreign chambers said the open-ended nature of the EO would turn investors off.

Independent oil player Flying V made warned on Wednesday that pump prices could rise by P4.50 per liter once the price cap is lifted.

“We expect such sentiments from the business sector. But it is the duty of the government to look after the interest of the consumers so we appeal to them (firms) to understand the situation,” Mr. Remonde said.

He also said a proposal to partially lift the EO in certain “hot spots” or those severely affected by the calamities has yet to reach the Palace.

“I was talking with [Justice] Sec.[Agnes] Devanadera regarding the issue and she said it was not true that she will recommend partial lifting of the EO,” he said.

“Devanadera said the joint task force continues to monitor the prices of oil as well as the supply. They continuously hold dialogues with the players in the sector. They have not yet given recommendations,” he added.

Palace officials earlier said the EO would only be lifted upon recommendations of the joint task force led by the Justice and Energy departments.

The joint task force will hold a meeting on Monday with the affected sectors to determine whether the directive should stay. -- Gerard S. dela Pena

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Palace scolds oil firms over price freeze