Oil price rollback temporary, says Palace

10/31/2009

The government-mandated price rollback of fuel products is only temporary.

Press Secretary Cerge Remonde made this assurance in a press briefing even as he warned that any deliberate supply shortages by oil companies could be viewed as economic sabotage, saying oil companies have “long-term supply contracts.”

President Arroyo issued last Friday Executive Order 839, mandating oil firms to roll back the prices of their fuel products to Oct. 15 levels.

EO 839 follows government’s earlier declaration of a state of calamity and the implementation of price controls of goods and services in provinces hit by back-to-back typhoons Ondoy and Pepeng.

Remonde said the imposition of price control on oil products has been “rigidly studied and that the concerns of the people were heard.”

Remonde said the President made a tough decision, ”fully aware that any form of price control is not good for the economy” and could distort the normal demand-supply patterns of goods and services.

“The President is aware of the consequences but decisions, even tough decisions, have to be made for the benefit of the majority. Deep in her heart, this is what is right. The President has to weigh everything,” he said. PNA

Back to top

For comments about this website:Webmaster@tribune.net.ph
The Daily Tribune © 2006