AMID clamor to repeal the oil-deregulation law, Energy Secretary Angelo Reyes emphasized that repealing such a piece of legislation can cause undesirable consequences for both the consuming public and the government.

“If we move to have a regulated market, then we must be prepared to suffer the consequences,” the energy chief warned.

Reyes pointed out that a fund similar to the Oil Price Stabilization Fund would be needed to be put in place should the oil industry be put under regulated regime.

Reyes explained the fund would shoulder the difference between what the market dictates and what the prices should be.

In a scenario where world oil prices are high and prices are capped to a certain level, Reyes said the fund can actually shoulder the difference, while it could also, in turn, result in an income when world oil prices are low and pump prices are kept on peg.

“So it [fund] balances out, but in a period when world oil prices continue to escalate, then all of the fund gets spent and the next question is, can the government sustain it?” he asked.

Besides the Department of Energy’s (DOE) current mandate to monitor prices, Reyes admitted that he wanted to have additional powers that would be tantamount to regulating the industry.

Reyes, however, added that he is also aware that the consequences would not be desirable.

At present, mandated under the Oil Deregulation Act, the DOE does not have the power to direct anybody to increase or decrease its prices, but is just merely authorized to monitor and ensure that safety, environmental standards and hazards to health are not happening.

In a related development, Chevron Philippines Inc., Petron Corp. and Pilipinas Shell Petroleum Corp. announced they will roll back the price of gasoline, diesel and kerosene by P1 a liter effective midnight of Friday

Eastern Petroleum Corp. and Seaoil Philippines Inc., likewise, reduced the price of their gasoline, diesel and kerosene by another 50 centavos per liter after having rolled back the price by also half-a-peso on Thursday morning.

Fernando Martinez, Eastern Petroleum chairman and chief executive, said additional rollbacks may be made depending on the movement of oil prices at the Mean of Platts Singapore and market reaction.

“The more frequent adjustment will enable Eastern to reflect immediately any savings to its customers while, at the same time, reflecting smaller increases in case of price upswings,” Martinez said.

Reyes earlier said Dubai crude was traded on Tuesday at an average of $86 per barrel, which is $13 lower than this month’s average of $99 per barrel.

“So this is good news. And people have been clamoring for more rollback. So it is then continuous that we should see more rollbacks. And I expect that there will be some more rollbacks because of the drop in price,” the energy chief told reporters.

75,000-MT sugar shipment to US fast-tracked

THE Philippines is speeding up the shipment of some 75,000 metric tons (MT) of raw sugar to the United States before the end of the year under the so-called early export program, the Sugar Regulatory Administration (SRA) said.

Bids for DMIA Terminal 2 project to be opened Monday

CLARK FREE PORT, Pampanga—The opening of the bids for the development of the $142-million Terminal 2 for the Diosdado Macapagal International Airport (DMIA) here is set to be opened on September 22, a top official of the Clark International Airport Corp. said Thursday.

Dole Food subsidiary petitions for duty-free status for RP pineapple juice

Dole Packaged Foods Llc., a wholly owned subsidiary of Dole Food Co., based in Westlake Village, California, has asked the United States government to allow unconcentrated pineapple juice shipped from the Philippines to enjoy duty-free status under the generalized system of preference (GSP).

IFC signs loan deal with Aboitiz power company to rehab 2 hydroelectric plants

THE International Finance Corp. (IFC) of the World Bank said Thursday that it signed a loan agreement with SN Aboitiz Power-Benguet Inc. (SNAPB) to help rehabilitate two hydroelectric plants.

Regulating oil industry can pose serious consequences–Reyes

AMID clamor to repeal the oil-deregulation law, Energy Secretary Angelo Reyes emphasized that repealing such a piece of legislation can cause undesirable consequences for both the consuming public and the government.

Cosmetics exhibit opens today at Megamall

Showcasing the country’s leading brands in cosmetics and personal-care products, a three-day cosmetics trade exhibit, called “Pilipinas, Ang Ganda Mo!,” opens today, at the SM Megatrade Hall 1, 5th level, Building B, Mandaluyong City.

DepEd, Palawan local execs welcome P1-M library from MacroAsia

MUNICIPAL leaders of Brooke’s Point, Palawan, and key officials of the Department of Education (DepEd) recently received a P1-million library building from MacroAsia Corp., the aviation services and mining arm of the Lucio Tan Group of Companies.