Filipino govt.: No energy price caps for now

MANILA, Philippines, Oct. 15 (UPI) -- Filipino Energy Secretary Angelo Reyes said that any attempts to place price caps on petroleum products now would violate the law.

The Inquirer reported Thursday that Reyes told reporters, "When you impose a price ceiling, the cure could be worse than the disease. You're trying to address a pricing problem, but you end up with a supply problem. That would even be more disastrous."

The energy secretary was replying to remarks made by Justice Secretary Agnes Devanadera, who observed that the government could investigate Pilipinas Shell Petroleum Corp. and Seaoil Philippines after they implemented 25-centavo increases in their fuel prices, while exempting Northern Luzon provinces severely hit by Typhoons Ketsama and Parma, which the government sees as price gouging.

Devanadera said, "We must remember that oil is an imported commodity and the moment the international price is higher than the ceiling, who will import it unless it is subsidized? If it has to be subsidized, then the finance department will have to answer whether in fact they can subsidize it."