MANILA - A palace fiat putting a cap on oil prices in Luzon in the wake of calamities should be lifted soon given that only the wealthy benefit from the directive, a presidential adviser said yesterday.

Malacañang officials, however, reiterated that the order would only be lifted once two agencies monitoring its implementation advise the President to do so.

In a statement, Albay Governor Jose Ma. Clemente "Joey" S. Salceda, an economic adviser to the President, cited results of the latest Family Income and Expenditure Survey of the National Statistics Office which showed that 82% of savings on fuel, light and water as well as 90% of savings on transportation and communications are being enjoyed only by the privileged few, or those earning P100,000 annually.

He added the lower-income bracket consumes only 18% of total expenditures on fuel, light and water, and a lesser 10% of total expenditures for transportation and communications.

"Contrary to the common notion, the oil price freeze disproportionately benefits the wealthy families... over the welfare of and at the expense of the informal settlers...," said Mr. Salceda.

This is in contrast to the rationale behind Executive Order (EO) 839, which ordered oil firms to revert prices to Oct. 15 levels as protection to those badly affected by tropical storm Ondoy (international name: Ketsana) and typhoon Pepeng (Parma) from higher fuel costs.

Besides having few beneficiaries, Mr. Salceda noted that the government is set to lose about P4.5 billion in tax revenues due to the price ceiling in Luzon. The cap was limited to Luzon since the island has been battered by successive storms in over a month.

"Given the expenditure incidence of the national government budget, this would be borne essentially by poor households by way of lower cash flows that could have been earmarked for conditional cash transfers, health programs and scholarships," Mr. Salceda said.

He also proposed that the task force implementing and monitoring the EO made up of the departments of Justice and Energy should also include the National Economic and Development Authority and the Department of Social Welfare and Development "to bring a broader perspective to its deliberation of the issue."

Mr. Salceda said he has aired this position to President Gloria Macapagal-Arroyo.

Meanwhile Presidential Spokesman Gary B. Olivar reiterated that Mrs. Arroyo would lift the directive only upon the recommendations of the Justice and the Energy departments.

"The task force is constantly looking at the situation. The President is listening to the inputs given to her," Mr. Olivar said in a radio interview. --