Market leader Petron assures Estrada: No oil price hike

Market leader Petron Corp. assured President Estrada yesterday that it would put on hold any planned planned increases on its fuel products.

Mr. Estrada said top officials of ARAMCO, part owner of the semi-government owned Petron Corp., paid a courtesy call on him at the presidential yacht BRP Ang Pangulo where he has been holding office for the duration of his Mindanao sojourn.

The President said he was able to persuade ARAMCO to put off any increase in the prices of gasoline and other oil products even as the price of crude oil in the world market has gone up to more than $24 per barrel.

The ARAMCO officials were accompanied by Energy Secretary Mario Tiaoqui.

The President also announced yesterday that the Manila Electric Company (Meralco) has vowed to maintain power rates at present levels despite the latest round of fuel price hikes.

In a radio interview in Davao City on the fifth day of his Mindanao visit, the President said Meralco executives granted his request to indefinitely put off any electric rate increase to help cushion the impact on the people of rising prices.

"I would like to take this opportunity to thank Meralco officials for giving in to my request," Mr. Estrada said.

He said the commitment to freeze power rates was conveyed to him by Meralco president Oscar Lopez and other officials of the utility firm last month.

The Chief Executive expressed hopes that other oil companies, specifically Pilipinas Shell and Caltex Philippines, would reconsider their plan to jack up anew their pump prices by at least P1 per liter.

Mr. Estrada reiterated that he would not hesitate to go down on his knees in appealing to the oil firms to withhold their plans to raise prices again, saying another hike would drastically affect low income families.

"But again, it is beyond my control. All I can do now is appeal. And these companies have been supportive of my appeal. In spite of the increase, the country still has the cheapest fuel prices compared to our neighboring nations," Mr. Estrada said.

Meanwhile, the energy department turned down proposals for the creation of an Interim Oil Committee (IOC), saying the move would only result in duplication of functions between the two agencies.

Proponents have asserted that the IOC would redound to a more effective monitoring of movements of crude oil prices.

Energy officials claimed that their department was already doing the functions being envisioned for the IOC, and rejected suggestions for the government to revive the automative pricing mechanism, adding that it would only lead to higher oil prices.

Local oil companies have signified recently their intention to raise their pump prices anew, saying the adjustment was necessary to recover losses.

Representatives of the three major oil firms--Caltex, Shell and Petron--told Congress that world prices of crude oil have risen to a high of $25.50 per barrel.

The oil firms agreed on an average of 78 centavos per liter increase based on the peso-dollar exchange rate of nearly P41 to a dollar.

Early last month, they effected a 50-centavo hike after crude oil went up to $22 per barrel.