"We echoed not only DOE’s appeal but also the consumer groups and the consumers. We are appealing that diesel prices should be maintained at current levels especially since it is a very socially sensitive product," Energy undersecretary Jose Emmanuel De Dios said in a press conference.
De Dios said that while there has been a series of price increases this year, it is not impossible to see price rollbacks if world crude prices start to stabilize.
"We note that last year, there were a number of price rollbacks. We do note that this year, there are also a number of price increases. But we’d like to see some decreases, some rollbacks, or some calibrated increases," he said.
He noted that oil retailers have a role to play in the dissemination of information. "It is important to note the role of retailers. This is where we can try to help the consumers," he said.
De Dios would not hazard a guess of how long the oil firms would be willing to delay any increase on their diesel prices.
"We don’t know really it is a matter of market forces. We have been monitoring OPEC and Dubai. In the last two days, there’s a slight increase in Dubai prices but six or seven days prior to that there were six to seven consecutive days of Dubai reduction. So, again even if prices should go up, we do expect, given the behavior of worldwide crude prices, should go down accordingly," he said.
The DOE official said they would continue to monitor the movement of prices here and abroad to ensure that both the oil companies and consumers’ welfare would be protected.
"This is something that we are watching very carefully because we wouldn’t want a situation where oil companies would take advantage of the situation," he said.
Meanwhile, De Dios said the DOE is studying the possibility of postponing the implementation of some provisions in Clear Air Act (CAA) to 2004.
The CAA, signed into law in 1999, provides that by year 2003, unleaded gasoline fuel should contain aromatics not to exceed 35 percent (from 42 percent) by volume and benzene not to exceed two percent (from four percent) by volume.
But De Dios said it will be Congress that will decide on the CAA deferment issue.
"It will be up to Congress. . . to come up with a joint resolution or an amendment to the existing laws. There are several options. The DOE and the Department Environment and Natural Resources could come up with a joint circular or President Arroyo could issue an executive order," he said.
De Dios said the DOE will come up with the results of an extensive study on the regional CAA compliance. "We will be coming up with the study next week on the capability of other countries to meet these required specs," he added.
He noted that among the Asian countries, the Philippines is the most stringent in implementing CAA.
He cited some Asian countries and their respective aromatic and benzene compliance levels. For Thailand, the levels of aromatic and benzene are at 35 percent and four percent; respectively; Singapore (50 percent, 3.5 percent); Malaysia (no aromatic level, five percent); Brunei and Vietnam (no aromatic, five percent); Australia (45-48 percent, 3.5 percent); European Union (45 percent and one percent); China and India (no specs required).