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Tuesday, December 30, 2008
Energy dep't cracks down on LPG suppliers
MANILA -- The Department of Energy (DOE) has ordered a crackdown on oil companies' LPG (liquefied petroleum gas) facilities for alleged hoarding.
Energy Secretary Angelo Reyes directed the Presidential Task Force on the Security of Energy Facilities and Enforcement of Energy Laws and Standard (PTF-Sefeels) to immediately conduct the inspection after the LPG Marketers Association (LPGMA) accused oil firms of "hoarding" their products, causing the tightness in supply.
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The inspection will start on January 2, Reyes said.
During a meeting with oil firms, Reyes said he was assured that there is no shortage of supply of cooking gas.
"There is no supply shortage. What we have is a technical problem and there are kinks in the distribution system because of the unusual increase in demand," he said.
However, the energy chief confirmed that the industry is experiencing some problems in its distribution system as demands increase, especially on the eve of Christmas.
LPG demand went up by as much as 30 percent during the Christmas season, prompting oil distributors to secure additional supply.
Reyes also warned LPG refillers, marketers, and dealers on using the temporary tightness in supply as an excuse to raise LPG prices.
Aside from the alleged hoarding, Reyes also instructed the task force to check reports of under-filing and unauthorized use of LPG cylinders.
"The solution is for the suppliers to upgrade their distribution capabilities. This is a hauling problem. There is a bottleneck in the distribution system but no shortage of supply," he said.
Arnel Ty, president of LPGMA, accused oil firms of keeping their LPG products, causing supply disruptions among the LPG distributors.
"We have to know when they can resolve this because we have customers waiting on December 31 and January 1. They have to resolve the problem of queuing," Ty said.
He said that distributors started experiencing rigidity in the supply last week.
But Petron Corporation, Pilipinas Shell, and Total Philippines denied the accusation.
"We are able to supply our customers despite the surge in demand," Petron officials said. (MSN/Sunnex)
For more Philippine news, visit Sun.Star Baguio. (December 30, 2008 issue)
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