NEDA vows to continue oil price monitoring effort

The National Economic and Development Authority (NEDA) vowed to continue monitoring oil prices and the volatility in the market despite criticisms from the Department of Energy, Socioeconomic Planning Secretary Ralph Recto said yesterday. Recto has said that local petroleum products were overpriced by roughly P8 per liter. However, Recto said NEDA would continue to monitor the price adjustments and make its own computations in a bid to protect consumers from price volatility. “Despite the grumblings of Energy Secretary Angelo Reyes, we should be forward-looking and stay focused on addressing oil price volatility. In fact, we are happy this is now being talked about since our concern is that in the current framework of a deregulated downstream oil industry, somebody must take the side of the consumers. In July last year, crude reached more than $130 per barrel and consumers reeled from the high pump prices. Oil firms Pilipinas Shell Petroleum Corp. and Petron Corp., disputed the computation and noted that in 2005, the 12-percent value-added tax had not yet been imposed on petroleum products. Reyes also said the government has no control over world oil prices because of the Oil Deregulation Law of 1998. (June 18, 2009)