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PRESIDENT Arroyo has ordered Energy Secretary Angelo
Reyes to further revise his proposed temporary
oil-tariff cut to reflect the inputs of other government
energy agencies and to submit it to the Chief Executive
as soon as possible.
Executive Secretary Eduardo Ermita said in his regular
news briefing that the President issued the directive
during the National Economic and Development Authority (Neda)
board meeting in Malacañang on Tuesday, which discussed
the oil tariff-reduction issue, among others.
“Energy
Secretary Reyes was asked to further revise his
proposal, but this time to consider the inputs from the
power sector such as the National Power Corp., the
Psalm, Transco and the Wholesale Electricity Spot
Market,” Ermita said.
He said
Reyes is expected to submit his revised proposal and
recommendations “as soon as possible, in time for the
President to approve it so that appropriate announcement
can be made.” He did not mention any specific deadline
for the energy chief.
Malacañang is bent on pursuing what it called the
“revenue-neutral” scheme which it had implemented for
six months last year amid surging oil prices.
On May
12, 2006, the President signed Executive Order 527 which
was effective from June until November that year,
providing for an automatic tariff mechanism based on
certain triggers indexed to international oil prices
that would cushion the local economy against rising
world oil prices without affecting government revenues.
Under EO
527, the tariff rate of 3 percent on imported oil would
be reduced to 2 percent if the benchmark price of crude
oil goes up to $66 per barrel, and diesel to $88 a
barrel.
Last
month, the President said she would revive the EO on oil
tariff cuts as part of government efforts to cushion the
impact of high oil prices on consumers and the public
transport sector, which is seeking a fare increase.
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