Arroyo revokes oil price freeze

MANILA — After getting a consensus with oil industry players to implement “staggered” increases in fuel prices, President Gloria Macapagal-Arroyo revoked Friday the Executive Order (EO) 839.

The President earlier signed EO 839, which freezes the oil prices in the entire Luzon to their October 15 levels, as a form of relief for those who are still struggling to recover from the typhoons that successively whipped major cities and provinces in the north.

But following a recommendation from the Department of Justice-Department of Energy (DOJ-DOE) Task Force that reviewed the price control, Arroyo announced Friday that the oil price freeze in Luzon will be lifted starting Monday.

She assured that oil companies will continue to provide fuel discounts, allowing transport groups to keep fares down for six months.

Arroyo also requested that price hikes should be “staggered” maybe over the Christmas season, for gasoline and diesel. She proposed that dealers of liquefied petroleum gas (LPG) can stagger their price recoveries over a month and a half.

For their part, oil industry players have agreed with the government and other stakeholders in implementing oil price increases on a staggered basis once the price cap is lifted Monday. (more)