GMA to seek Saudi help on RP oil supply

President Arroyo will seek Saudi Arabia’s commitment to continue supplying oil to the Philippines at a "special" price when she visits the world’s largest oil exporting country next month, Energy Secretary Raphael Lotilla said yesterday.

"Ipapakiusap ni President Arroyo ang special price at patuloy na supply ng langis sa Pilipinas (President Arroyo will ask for a continuous supply of oil to the country at a special price) when she visits Saudi Arabia and meets with the leaders,"
Lotilla told Vice President Noli de Castro during his weekly radio program "Para Sa ‘yo… Bayan."

While in the Middle East kingdom, the President will also take the opportunity to discuss with Saudi leader King Abdullah and Saudi leaders issues related to terrorism and the alleged harassment of Saudi nationals arriving in Manila on suspicion that they had links to terrorist groups, National Security Adviser Norberto Gonzales said.

The President is expected to make it clear that the government’s anti-terrorism campaign is not targeting nationals of any particular country.

Gonzales said the Philippine government has received a diplomatic protest from Saudi Arabia on the matter.

"Our President will go to Saudi Arabia at pag-uusapan din nila ang terrorismo (terrorism will also be tackled) because of the arrest of Saudi nationals who entered the Philippines. We don’t pinpoint them as individuals with links to terrorists. That’s why the President will also explain this," Gonzales said.

He explained that the Philippines now has the final list of names and identities of suspected terrorists and the central list is shared with other countries.

The President will visit Riyadh for two days beginning Sept. 10 before flying to New York on Sept. 12 to attend the United Nations General Assembly and the Philippines’ assumption of the UN Security Council seat.

Lotilla said he was optimistic that Mrs. Arroyo’s meetings with Saudi officials would bear positive results.

Manila and Jeddah have good bilateral relations. The presence of Filipino workers in Saudi Arabia since the 1970s has resulted in a significant contribution to the oil-rich country’s development.

Oil prices went up again yesterday, and the increase in petroleum products is expected to continue at an average of 50 centavos every week.

Lotilla said the transport sector which mostly uses diesel is the biggest user of oil products.

He added that the oil consumption of the country fell by 8.5 percent from January to May because of the energy conservation measures.

"Bumaba ang importation (Importation of oil went down) but the price we paid increased also because of the peso depreciation," Lotilla said, noting it is difficult to say that oil prices will not go up again by December. "There’s no expert who can say it’ll not increase."

He noted that strong economies such as the United States and China were also experiencing sharp increases in oil prices.

Meanwhile, the Department of Energy (DOE) said it was not receptive to the energy conservation program initiated in Davao City for one "car-less" day per week as part of efforts to cope with rising fuel costs.

Lotilla instead called on local government units, particularly in Metro Manila, to help in the President’s energy conservation program and promote it in their offices and to their constituents.

But Lotilla did agree to a "meeting-less" day in which government offices will not hold meetings if the agenda is not urgent.

The head of the Delegation of the European Commission to the Philippines earlier said the European Union (EU) cannot help slow down the steady increase of oil prices in the world market despite the severe consequences, especially to developing countries.

Ambassador Jan de Kok said at the signing ceremony for a P43-million Special Project Facilities (SPF) agreement for five civil society and non-government organizations (NGOs) that the high prices of oil are a reflection of "supply and demand."

He added that the EU can only use a little oil from their member-states’ reserves since the bulk of it comes from oil-producing countries that are not within EU.

Countries enjoying strong economic growth, he noted, have might higher demands for oil, as it is still one of the easiest sources of energy to obtain.

Malacañang was reportedly seriously studying fuel rationing as part of the energy-saving measures it will propose to Congress amid the continuing fuel price increases.

The DOE urged the public to consider alternative fuels such as compressed natural gas, coco-diesel and ethanol which can be blended with fuel in selected gasoline stations.

When blended with natural gas, Lotilla said the alternative fuels do no damage to engines, and in fact result in higher gas mileage for vehicles.

Lotilla also said the construction of depots in Batangas and filling stations for compressed natural gas will be completed this month.

Bus companies and operators are expected to save 30 percent in fuel prices for CNG-run buses that will initially run a route of Manila-Batangas.

He added that bus operators are open to CNG-run buses which can be purchased with loan through the Development Bank of the Philippines.

The President last month launched two CNG-powered buses during the government’s natural gas vehicle program for public transport.

The passenger buses running on CNG are reportedly more efficient than those using diesel.