DOE enforces ‘price freeze’ on LPG, kerosene products

Published December 28, 2017, 12:06 AM By Myrna Velasco

https://news.mb.com.ph/2017/12/28/doe-enforces-price-freeze-on-lpg-kerosene-products/

As various parts of the country had been pummeled by calamities in recent days, the Department of Energy (DOE) has instituted price freeze on basic energy commodities, primarily for liquefied petroleum gas (LPG) and kerosene products.

The department said this is in line with the declaration of a state of calamity in many areas in Mindanao that had been hit by tropical storm “Vinta.” Prior to that, the Visayas region also suffered from the wrath of tropical storm “Urduja.”

As enforced by the department, “the price freeze application is for 15 days, commencing one day after the declaration.” The announcement was made on December 26.

The coverage of the price freeze will be the LPG products used for household cooking, typically the 11-kilogram cylinder and those tanks of smaller sizes.

And for kerosene, the department is expecting ‘no price movement’ when the oil companies will adjust their prices next — their Tuesday routine on a weekly basis.

To properly carry out this mandate, the department noted that its Oil Industry Management Bureau (OIMB) and its field offices are now coordinating with relevant industry players, so they can be properly apprised of this order.

The price freeze on basic commodities, in times of calamities, is prescribed under Republic Act 7581, as amended by RA 10623, or the “Price Act.”

One important parameter that must be monitored in this order would be the ‘no increase’ prescription for LPG products as their costs only move on a monthly basis.

Apart from sustaining the price levels of certain commodities, the DOE has likewise been collaborating with all players in the industry to normalize fuel supply and bring back electricity service in storm-hit areas.

Required efforts though would be massive as two core regions of the country have been walloped by successive storms in just a stretch of a week.

Energy Secretary Alfonso G. Cusi indicated that “we are doing all we can to bring back to normalcy the energy situation and secure fuel and power supplies in the typhoon-stricken areas.”

He gave word that his department will take the lead in “monitoring the situation in typhoon-affected areas even during the holidays to ensure that people have ample and secure energy supply.”