Prepare for oil price surge

Worried over the unabated oil price increase in the world market, Senator Richard Gordon urged the national government to prepare safety measures as he issued a sober warning on the risks to the country’s economy posed by the surging price of oil.

"With the price of oil nearing US100 per barrel, Filipinos must be prepared to tighten their belts," Gordon said.

Gordon added: "We should develop the domestic economy to cushion the effect of the rising oil prices."

He emphasized that demand management should be undertaken to efficiently distribute oil to consumers.

Gordon stressed that there is a need to adopt energy-saving measures to improve mileage for oil consumers. Simple actions for motorists such as keeping tires inflated, driving the speed limit in highways, cutting back on idling, carpooling or taking public transit and keeping motor vehicles tuned up would increase mileage in the existing fleet.

The blow from the recent surge in oil prices would have been worse if not for the "resilient economy" and strong peso.

World oil prices reached a record-high of -a-barrel on Thursday after a surprise drop in United States crude stockpiles raised concerns about supplies for the coming winter demand.

Reports said analysts do not see anything standing in the way of a run to $100 per barrel after the Organization of Petroleum Exporting Countries (OPEC) continued to resist calls to hike production.

OPEC said the soaring market was beyond its control, with the cartel blaming speculation and politics for the surge in price.

At the same time, Gordon explained that the oil price increase should serve as a continuing wake-up call for all sectors as well as the government to conserve energy and find other sources of energy.

Meanwhile, President Arroyo ordered yesterday concerned agencies to implement measures that would cushion the impact of the continuing oil price increases.

The President also called on the people to unite, put an end to politicking and help the administration in addressing the concerns following the oil price increases in the world market.

This developed as Department of Energy (DoE) Secretary Angelo T. Reyes and Department of Trade and Industry (DTI) Secretary Peter Favila said that their agencies would do everything to mitigate the impact of the oil price increases on the people.

Reyes said that the country is not yet in a "crisis situation" following the announcement of the latest oil price increase in the world market. (Rolly T. Carandang & Anthony Giron)

http://www.tempo.com.ph/news.php?aid=34675

TEMPO

11/07/2007