Philippines ready for oil price increases

May. 31, 2007

MANILA — The government is ready to implement its old but effective measures to avert the domino impact on the domestic fuel prices of oil price increases in the global market.

Executive Secretary Eduardo Ermita said in his weekly press briefing in Malacanang this afternoon that this is in response to the plan of multinational oil companies to impose a series of oil price hikes in the next few weeks.

“The government will continue to implement the discount scheme in gasoline stations for all public utility vehicles,” he said.

Oil prices rebounded yesterday to near $70 a barrel in London on lingering concerns over the Nigerian crude production.

The Department of Trade and Industry (DTI), according to Ermita, will provide discounts and lower the prices of spare parts in order for motorists to make up for the increase in the prices of fuel or gasoline products.

These measures, which were already used by the government in the past, will be implemented anew to cushion the impact of the price increases, he said.

Ermita revealed that the Office of the President has directed the Philippine National Oil Company (PNOC) to look into alternative fuels as the best solution to resolve the countrys dependence on imported crude oil.

He also said that President Gloria Macapagal-Arroyo has instructed all concerned agencies to fast-track the development of newly discovered biofuels and diesel extracted from jatropha (tuba-tuba) plants “so that a time will come when the Philippines will no longer rely on fossil oil.” (OPS) (

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