Areas covered by oil price freeze may be reduced

Posted at 11/10/2009 2:36 PM | Updated as of 11/10/2009 2:40 PM

MANILA - Justice Secretary Agnes Devanadera on Tuesday hinted of a possible partial lifting of the oil price freeze being implemented by the government in response to recent calamities.

Devanadera told radio dzMM that representatives from the government and oil companies came up with a consensus during Monday's consultative meeting on the need to pinpoint areas in Luzon that need "special treatment."

She said "special treatment" means the implementation of a special pricing of oil products in areas that have not recovered from the devastation caused by tropical cyclones Ondoy (Ketsana) and Pepeng (Parma).

She said the meeting's outcome will be reported to President Gloria Macapagal Arroyo by the joint task force of the Department of Justice (DOJ) and Department of Energy (DOE) during a Cabinet meeting in Bohol on Tuesday morning.

Devanadera said oil companies were the ones who came up with the initial list of areas where the oil price freeze should be implemented.

Supply not an issue

The justice secretary, meanwhile, allayed fears caused by Energy Secretary Angelo Reyes' statement that the oil companies' inventory of finished products will run out in 13 days.

Reyes brought the alarming news after a consultative meeting with oil companies. He said the government "cannot force private corporations to sell at a loss indefinitely."

The energy secretary, however, advised people not to panic. "Relax. We can handle this," he said, without clearly identifying what measures the government will implement to control the oil supply problem.

Devanadera said she was surprised about Reyes' statement. She said that during the meeting, oil companies even assured that "the supply will be there."

He said oil companies made the assurance after government representatives' explained the government's overall plan based on Executive Order 839, which orders oil companies to keep the prices of oil products in Luzon at October 15 price levels.

"Supply was not identified as something that is an urgent problem. What we discussed are the next steps ahead and we did not discuss what will be the future problems, but solutions," she added.


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