Philippines imposes oil price freeze in wake of devastating storms

Manila - Philippine President Gloria Macapagal Arroyo has ordered an oil price freeze to avoid major increases in the wake of devastation from two previous storms, a top aide said Monday. Executive secretary Eduardo Ermita said Arroyo signed the order Friday directing industry players to maintain the prices of petroleum products to the levels prevailing on October 15.

The prize freeze was issued "to prevent unreasonable increase in the prices of petroleum products during a state of calamity," the order said.

It added that the move was necessary "at this time when the Filipino people are reeling from the effects of the catastrophic devastation caused by successive calamities."

The order said the price freeze would be in effect while the northern region of Luzon is under a state of emergency, which Arroyo declared following storm Ketsana and typhoon Parma's onslaught.

Ermita said Arroyo directed a joint task force of the Department of Energy (DOE) and the Department of Justice to monitor the order's implementation and file complaints against violators.

The Philippines deregulated the oil industry in 1998.

But the order noted that the liberalization law authorized the DOE "to temporarily take over or direct operations of any person or entity engaged in the industry in time of national emergency."

Nearly 1,000 people were killed and more than 8 million affected by the worst flood in over 40 years caused by Ketsana on September 26 and landslides triggered by Parma one week later.

The two cyclones also caused damages to agriculture and infrastructure worth more than 652 million dollars.