Philippines to lift oil price freeze imposed after storms
Reverses stand after threats by companies to announce shortages
Manila: President Gloria Arroyo gave in to oil companies that have threatened to announce oil shortages, following her declaration of a state of calamity and an oil price freeze to prevent consumer price rises.
This after two typhoons in late September to mid-October devasted Metro Manila and northern and southern Luzon.
An oil price cap in Luzon will be lifted on Monday although the government has yet to make a definite announcement regarding price controls for rice, sugar and other basic commodities, said a palace statement, adding that Arroyo had revoked her executive order which held fuel prices at October 15 levels.
"It was in response to a recommendation of the task force that was created to review the government's executive order," said the statement.
Stakeholders can "work out" the details of the staggered price hike and on Monday "we can synchronise…the general increase [of oil products]," Arroyo said.
Fuel discounts
Arroyo said she got the assurance of oil distributing companies that they will continue to provide fuel discounts to transport groups to hold fares down for six more months.
Arroyo said she requested that price hikes for gasoline and fuel should be staggered until after the Christmas season.
Dealers of liquefied petroleum gas (LPG) should stagger their price recoveries over a month and a half, said Arroyo.
Oil companies raised product prices after two storms destroyed crops, submerged villages and left thousands dead.
Trade Secretary Peter Favila said the government will lift price controls on basic and prime commodities on Monday.
However, the move is subject to three conditions: traders should assure adequate supplies and reasonable pricing, no hoarding and profiteering, and discipline in the market, said Favila.
"I will not hesitate to re-impose price controls in case of widespread violations," said Favila.
Two small oil players Total Philippines and Eastern Petroleum refused to give details of the level of increases in their prices.
Arroyo flew to Singapore to attend the summit of the Asia-Pacific Economic Cooperation (Apec).
