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  1. Join Date
    Sep 2003
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    25,038
    #1
    I hope there will be no gas holiday.

    There is no conflict between a new executive order freezing fuel prices to October 15 levels and the oil deregulation law, Malacañang insisted Monday.

    But Malacañang also said it will leave to Energy Secretary Angelo Reyes the task of identifying and punishing oil firms that will violate Executive Order (EO) 839.

    “Baka sinasabi nila [oil players] na deregulated ang oil industry; merong isang provision sa Oil Deregulation Act na nagsasabing in cases of emergency maaaring i-manage ng pamunuan ng DOE ang presyo ng krudo (Even the oil deregulation law allows that in cases of emergency, the Department of Energy can manage prices of fuel)," Press Undersecretary Anthony Golez Jr. said in an interview on dwIZ radio.

    EO 839 orders oil companies to keep the prices of all petroleum products temporarily at October 15 levels, until the state of calamity imposed on Luzon is lifted.

    It cites Section 14 (e) of the oil industry deregulation law that allows the DOE to temporarily take over or direct the operation of players in the fuel industry.

    In times of national emergency, when the public interest so requires, the DOE may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any person or entity engaged in the industry," the law said.

    On the other hand, Golez said the Palace expects Reyes to call representatives of the oil firms to a meeting to remind them about EO 839.

    “Siguro si Sec. Reyes ang makapagsasabi. Pupulungin ni Sec. Reyes ang mga players ng industrya ng petrolyo nang sa ganoon magkaroon ng efficient na pag-uusap sa pag-implement ng EO na ito (We expect Reyes to meet with representatives of the oil firms to make the EO clear to them)," he said.

    He noted that President Arroyo signed Executive Order 839 only last Friday, and government offices were closed during the weekend.

    Golez noted Mrs. Arroyo had placed the country under a state of calamity in the wake of tropical cyclones “Ondoy" (Ketsana) and “Pepeng" (Parma).

    She eventually lifted the state of calamity in Visayas and Mindanao, but retained it in Luzon, which bore the brunt of damage caused by the cyclones. [See: State of calamity lifted in Visayas and Mindanao]

    When asked what consequences violators should face for ignoring the EO, Golez said it is up to Reyes. “Si Sec. Reyes ang makapagsasabi niyan (Reyes can comment on that)," he said.

    Reyes had been accused by some militant transport groups demanding price rollbacks of siding with oil companies.

    According to a report by GMA News' Julius Segovia, big players Pilipinas Shell and Petron Corp. have yet to issue statements on the price freeze. Chevron Philippines, meanwhile, said it will still study the executive order.

    While some small players said they will comply with the EO, their officials said a prolonged price freeze might endanger oil supply.

    "We'll have to exercise this as part of our corporate social responsibility," said UniOil general manager Luisito Medina-Cue Jr.

    "[But] If it's a loss, they (oil companies) will slow down selling and supply may be dwindling down," Medina-Cue added.

    On Sunday night, UniOil implemented a price rollback of P2/liter for diesel, P1.25/l for gasoline, and P1.50/l for kerosene in accordance with the EO.

    Fellow independent firm Flying V also said it would abide by the EO, but that it should not last longer than necessary.

    "We feel that's a form of sacrifice on our part to also help our fellow countrymen who were affected by the recent typhoons, and we just hope this won't be for long," said Jose Victor Cruz, Flying V vice president.

    "If it will be longer than we expect then it's going to have an impact on supply because we cannot sell at a loss," Cruz said.

    Obet Martin, spokesperson for transport group Pasang Masda, urged the oil companies to set aside concerns for profits for now.

    "Wag muna natin isipin yung tayo'y kumita. Ang isipin nalang natin ay makapagserbisyo't makadulot tayo ng ginahawa sa mga biktima ng bagyong "Pepeng" at "Ondoy" (Let us not think of profit for now. Let's just keep in mind that we are helping those affected by cyclones Pepeng and Ondoy)," said Martin.
    Last edited by Monseratto; October 26th, 2009 at 01:13 PM.

  2. Join Date
    Feb 2008
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    14,181
    #2
    In the end market forces will prevail. Dami ng examples of price controls in economic history not just here but also abroad. THEY ALWAYS FAIL IN THE END BECAUSE ITS CONTRARY TO HUMAN NATURE OF GREED. Ang mangyayari the gasolinahan will have rationed selling or even just close shop until such price controls are lifted. No one and I mean NO ONE wants to sell at a loss (now yung oil companies na lang nakakaalam kung lugi nga sila selling at Oct. 15 levels or hindi) even if sabihin mong may trahedya.

  3. Join Date
    Oct 2002
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    40,038
    #3
    just wondering, if the small players can comply, why can't the big 3?
    Last edited by shadow; October 26th, 2009 at 02:19 PM.

  4. Join Date
    Dec 2005
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    39,162
    #4

    One of the seven deadly sins.....

    8800:juggle:

  5. Join Date
    Oct 2002
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    29,354
    #5
    With the price control on certain other items, do not be surprised by shortage of these items in the stores.

    Due to the government action, these items suddenly vanished from the store shelves because the price ceiling dictated by the government is too low, well below the SRPs of the products. To avoid selling below SRP, these products are simply pulled off the shelves until the price freeze is lifted.

  6. Join Date
    Oct 2002
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    29,354
    #6
    Quote Originally Posted by shadow View Post
    just wondering, if the small players can comply, why can't the big 3?
    I guess the big three has bigger overhead to account for.

    Makes you wonder why the smaller players don't invest into a refinery in the country. There is a reason why they don't, it is more profitable to import the finished product.

  7. Join Date
    Sep 2003
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    21,384
    #7
    One of the seven deadly sins.....

    Glutonny!


  8. Join Date
    Nov 2005
    Posts
    45,927
    #8
    the big oil companies are less afraid of the govt

    the local players (lalo na Uniol) have tax problems with the govt (smuggling fuel)

    they cooperate with the govt to be in good graces with the govt

    the foreign owned firms have higher cost (refining crude oil, not just importing finished products)

    local players have lower cost

    --

    i'd like to see our POPULIST govt maintain price controls to the point oil companies stop importing

    akala ng mga tao all-powerful ang gobyerno

    market forces are more powerful than any government

    companies can only absorb so much losses

    sooner or later they will stop importing

    pag pila pila na sa mga gas station, tingnan natin ano magagawa ng gobyerno
    Last edited by uls; October 26th, 2009 at 06:08 PM.

  9. Join Date
    Aug 2004
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    22,705
    #9
    Quote Originally Posted by ghosthunter View Post
    I guess the big three has bigger overhead to account for.

    Makes you wonder why the smaller players don't invest into a refinery in the country. There is a reason why they don't, it is more profitable to import the finished product.
    Because smuggling fuel in is more profitable? :hysterical:

    -

    My worry is that what happened with the price-fixed items after Ondoy will also happen with gasoline... when even the tinderas on the street complain that the price ceiling is too low (and they normally sell much lower than the supermarkets), then you know that something's off. We still can't buy basil... anywhere...

    -

    Makes me wonder... what are gas prices now? Just bought at Unioil... paid about the same as I paid for Caltex the day before... some rollback... reminds me of the much publicized rollback they had a few months ago... which resulted in their prices being about the same as everyone elses...
    Last edited by niky; October 26th, 2009 at 06:04 PM.

    Ang pagbalik ng comeback...

  10. Join Date
    Oct 2002
    Posts
    3,872
    #10
    i'd like to see our POPULIST govt maintain price controls to the point oil companies stop importing

    akala ng mga tao all-powerful ang gobyerno

    market forces are more powerful than any government

    companies can only absorb so much losses

    sooner or later they will stop importing

    pag pila pila na sa mga gas station, tingnan natin ano magagawa ng gobyerno
    Well, let's see who gets to blink first. If the Big 3 oil companies are sure to lose money over the EO, they'd probably stop selling right away rather than risk further losses.

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Palace defends EO on fuel price freeze