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Palace rebuffs oil companies anew on price issue

By TJ Burgonio
Philippine Daily Inquirer
First Posted 18:12:00 11/05/2009

Filed Under: Consumer Issues, Oil & Gas - Downstream activities

MANILA, Philippines?Malacañang maintained its hardline stance against the oil companies on Thursday as it rejected their appeal for a dialogue with President Gloria Macapagal-Arroyo on the possible recall of her order freezing fuel prices.

Arroyo's spokespersons balked at the appeal and declared that the oil industry leaders should be content to air their concerns with the Department of Justice-Department of Energy Task Force.

"The President has always been open [to a dialogue], but we have a task force,'' deputy presidential spokesperson Lorelei Fajardo said at a news briefing, pointing out that the task force was created especially for this purpose.

"Yes,'' she replied when asked if Malacañang preferred that the task force held a dialogue with the oil companies instead. "In fact, they have a meeting on Monday. They might also invite the dealers and gasoline owners.''

Anthony Golez, another presidential spokesperson, added: "Any consultation must be coursed through the task force. This is happening in support of the reconstruction and rehabilitation of hundreds of thousands of families made victims by calamities.''

In full-page ads in newspapers on Thursday, oil industry leaders requested Arroyo to "allow us to sit down and discuss with you, so that you may consider recalling'' Executive Order 389.

They said the order posed "imminent danger'' to the economy, business and employment that "far outweighed'' the benefits.

"A weakened oil sector, forced to sell at a loss, cannot continue to play its strategic role as the government's partner in the nation's growth and in ensuring an adequate level of supply given the instability of world prices of crude oil and petroleum products,'' they said.

The government has come under pressure from big-business groups to lift the EO, warning that this would result in losses for the oil companies, risk future supply of petroleum and discourage investment.

But Malacañang has not budged, arguing that this was issued to help the greater majority of the people in Luzon to cope with the devastation and after-effects of recent storms.

EO 839, issued October 23, put a cap on prices of petroleum products based on their October 15 level in Luzon which remains under a state of calamity.

Golez said Arroyo didn't feel any pressure at all to lift the EO in the face of a clamor for it.

"No, the President will not be threatened by the clamor. The President has made the decision to effect the executive order, and that is going to be done,'' he said.

He disagreed with the observation of Albay Governor Joey Salceda, one of the President?s economic advisers, that the EO tended to favor the rich rather than the poor.

"In the same manner that Governor Salceda is against it, a lot of people are for it,'' he said, arguing that this would benefit the poor more because they have less buying power for basic commodities than the rich.

The officials said they have not received any report of gasoline stations closing down as a result of the EO.

"This should be the subject of discussions in the dialogue on Monday,'' Fajardo said of the reported closure of gas stations.

Golez also cautioned the oil companies against creating an artificial shortage of petroleum products to prompt the government to lift the EO .

"They won't succeed because there's a task force. This matter will be handled by the task force created. Whatever is the appropriate punishment will be meted out on them if they are found to be responsible for that,'' he said.



Copyright 2011 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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