Press Release
November 6, 2009

CHIZ BLASTS SCARE TACTICS OF OIL INDUSTRY PROXIES

Opposition Sen. Chiz Escudero yesterday denounced scare tactics of oil industry proxies pushing for the lifting of the oil price freeze in Metro Manila and the rest of Luzon.

Reports quoting unnamed oil industry sources warned of possible fuel shortages and job losses if the government maintains the prices of gasoline and other petroleum products at the Oct. 15 level.

"These unsubstantiated reports are obviously meant to influence government into scrapping EO 839. The shadowy lobby has launched an all-out campaign to pressure the Palace to back down," he said.

Escudero said the government must remain steadfast and remove controls in the affected areas only when it sees that communities hit by the successive typhoons have recovered well enough from the devastation.

"We all know that a surge in fuel prices will be likely when controls are lifted. This will impact on prices of basic commodities and likely lead to higher transport costs. This will mean more Filipinos going hungry," he said.

The 40-year lawmaker reiterated his call for Congress to act on proposed measures seeking amendments or the repeal of the oil deregulation law when it resumes sessions on November 9.

He has also warned government to prepare for a possible an oil price tsunami next year when petroleum prices are likely to shoot up because of the improving world economy.

"The law has become unresponsive to our needs. It has failed to spur competition and establish a regime of fair prices," he said.

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