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Oil firms to offer discounts in disaster areas

By Norman Bordadora
Philippine Daily Inquirer
First Posted 18:45:00 11/09/2009

Filed Under: Oil & Gas - Downstream activities, Energy & Resources

MANILA, Philippines—(UPDATE) Oil companies are open to giving price discounts on petroleum products as part of a “package of relief” in areas identified to be still reeling from the effects of tropical cyclones that recently hit Luzon, an official said Monday.

This was revealed by Acting Justice Secretary Agnes Devanadera hours after she met with the country’s oil firms at the Department of Justice.

She added that there was a suggestion from the oil distributors that the areas hardest hit by the recent disasters be mapped to ensure that relief benefits go to where they are needed most.

Devanadera said she would submit the oil companies’ recommendation to the National Disaster Coordination Council, which would meet Tuesday to assess whether the emergency situation should continue.

“Everybody was willing to give a discount,” Devanadera said referring to the oil companies that were represented by their top executives at the meeting.

“There was a suggestion that we look at the places that were affected in Metro Manila, Pasig, La Union and Laguna… so benefits of relief would go to those who need them,” she said.

Devanadera said concerns were raised that the Luzon-wide freeze on fuel prices would benefit even those who could afford regular fuel prices.

“Those who have five cars don’t need this relief,” she said.

Devanadera reiterated that Executive Order No. 839, which froze fuel prices at Oct. 15 levels, was “very temporary” and was a result of the existing emergency situation.

She said it was up to the NDCC, which includes DoJ, to lift the emergency status.

“The NDCC is the mechanism that assesses, evaluates and determines the need to maintain the emergency situation,” Devanadera said.

Representatives of the Big Three—Petron, Shell and Chevron—as well as those from small companies attended the meeting. Trade Secretary Peter Favila was also present during the dialog.



Copyright 2009 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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