MANILA -- The Justice department recommended Tuesday the lifting of Executive Order (EO) 839 in selected areas in Luzon even as the government bared no plans to lift it in the nearest time.

President Gloria Macapagal-Arroyo issued the EO 839, ordering the price freeze on petroleum products at the October 15, 2009 levels in Luzon following the devastations brought about by back-to-back storms in the region.

"The Manny Pacquiao Blog". Click here for stories and updates on the Filipino boxing champ.

"I've already released report recommending partial lifting of oil price freeze. We still need to thresh out further details," said Acting Justice Secretary Agnes Devanadera on Tuesday.

She said oil companies presented proposals, such as providing relief and discount in oil prices in areas affected by typhoons, prompting her to decide on the partial lifting.

However, National Economic and Development Authority (Neda) chief Augusto Santos said the government has no plans yet to lift the EO 839 in the nearest time.

Santos is basing his statement on the result of the Cabinet meeting held by President Arroyo in Loboc, Bohol on Tuesday.

Santos said the National Disaster Coordinating Council (NDCC) will still have to determine if the country, particularly entire Luzon, is still under state of calamity before the EO will be lifted.

“That it is the legal basis of the EO 839,” he said.

An inter-agency committee headed by the NDCC was tasked to study and determine if the state of calamity be appropriately lifted in Luzon, which was hardly hit by the recent calamities.

The group is expected to meet as soon as possible to be able to come out with their decision, said Santos.

The EO 839, which capped oil prices in Luzon, has been in effect since October 24 due to wrath of typhoons in the northern part of the country.

Small and big oil companies, however, have been incessantly opposing the EO, noting that price ceiling on fuel could result to supply shortage and huge financial losses.

On Monday, Energy Secretary Angelo Reyes also made a statement that the country’s inventory of finished petroleum products would only last in eight to 13 days.

But the government did not buy these accounts, saying they do not believe that there is petroleum shortage.

“The government does not believe in what the private sector is saying and what is happening to them,” Santos said.

He added that Reyes’s statement should not create panic, assuring that the government is exerting all efforts to address issues on oil.

Santos' assurance was backed by the statement of independent oil firms who said that they still have enough supply of petroleum products to cater consumers’ needs.

Malou Espina, corporate communications manager of Total Philippines, noted that once their supply is depleted, they could immediately place an order and the shipment would only take three to five days.

Chito Medina Cue, general manager of Unioil Philippines Petroleum Inc., (UPPI), said they have sufficient supply of petroleum products, adding that their operations continue.

“We’ve already placed our importation for the months of November and December, so our supply is more than enough,” Cue said.

Importation

But if ever oil shortage happens, Senate President Juan Ponce Enrile said the government should import petroleum products using its resources.

”The only solution is for the government to import if they have the money to import and the mechanism to import,” Enrile said.

Senate Minority Leader Aquilino "Nene" Pimentel agreed with Enrile, saying the threat of oil shortage was temporary since oil firms only refused to import oil unless the government lifted the oil price cap.

Enrile also said that there is a need to review the Oil Deregulation Law, saying “the mechanism that we had in place when we (opted for) deregulation was thrown away and that was Petron.”

The Senate president also favored the call for the government to force the oil companies to make public their books.

Discounts

The Palace, meanwhile, welcomed the suggestion of oil companies to give discounts to selected areas still coping with the wrath of calamities.

Press Undersecretary Anthony Golez said in a press briefing that compromise talks between the government and oil companies are good indication in building transparency and openness amongst the two bodies.

“The oil companies also expressed readiness to help as long as the benefits of relief would go to those who really need them,” he added.

“This has been an added benefit and hopefully from now on, the oil industry will be open to communication with the government,” said Presidential adviser for economic affairs Gary Olivar who was also present in the briefing.

Olivar said the President’s confidence with Secretary Reyes remained despite the chief, for several times, differed from the stand of the government on oil issue.

The palace official said President Arroyo “has confidence in all of her Cabinet members, otherwise they would not be on her cabinet.” (Jill Beltran/With MSN/PNA/Sunnex)