Philippine president lifts freeze on oil prices

Manila - Philippine President Gloria Macapagal Arroyo Monday lifted a three-week freeze on oil prices that was decreed to ease the hardship of more than 8 million victims of two devastating typhoons. She cited the proposal of oil companies to provide more focused calamity assistance programmes to those affected by the storms as the main reason for lifting the price freeze.

Business groups had warned that the freeze could result in petroleum shortages as companies could not be forced to sell at a loss.

The order to lift the oil price freeze came as petrol stations in the provinces have resorted to rationing, saying supply was already running low.

In Manila, some petrol stations depleted their stocks, while others closed early to avoid further losses.

Critics said the freeze was contrary to the country's 1998 oil deregulation law.

Nearly 1,000 people were killed and more than 8 million affected by the worst floods in more than 40 years caused by a September 26 storm, and landslides triggered by a second storm one week later.

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