MALACAÑANG ordered Saturday an investigation into the hike in prices of liquefied petroleum gas (LPG) in the Visayas and Mindanao, amid complaints the price hikes stemmed from a price ceiling on fuel products in Luzon.

Press Secretary Cerge Remonde said the Department of Trade and Industry (DTI) has been directed to see if the price increases are justified.

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“We are directing the DTI to look into that, whether that is justified or not. If (it is) not justified, the DTI is hereby directed to do what it can to protect the interest of our consumers,” Remonde said in a radio interview.

Petron Corporation increased LPG prices in Visayas and Mindanao effective Friday.

It said the adjustment was to “reflect the rise in LPG contract prices for the month of November.”

LPG prices in Luzon meanwhile remain unchanged in accordance with President Gloria Macapagal-Arroyo’s Executive Order 839, which puts a freeze order on oil prices in Luzon.

The EO noted Luzon is still under a state of calamity as several areas there were devastated by typhoons Ondoy and Pepeng.

Also, Remonde said the Palace is directing the Energy Regulatory Board to explain why it allowed Manila Electric Co. (Meralco) to increase its rates by 25 centavos.

“Dapat explain yan ng ERC na syang regulatory agency ng presyo ng kuryente (The ERC should explain because it is the regulatory agency that sets power rates),” he said.

Meralco will increase its generation charge by P0.327 per kilowatt-hour this month as a result of hike in power supplied by its own independent power producers.

But Meralco vice president and utility economics head Ivanna Dela Peña said the hike would only be 25 centavos per kWh due to the reduction in transmission charges amounting to 0.06 centavos and the deferred power purchase adjustment of P0.017 per kWh.

She said the cooler weather at this time of the year would also help reduce generation rate adjustment on the over-all bills of Meralco customers. (JMR/Sunnex)