Philippine President Calls for Energy Summit to Tackle Rising Oil Prices

Excerpt from report in English by Philippine newspaper Philippine Daily Inquirer website on 5 January

["Arroyo wants energy summit convened"]

MANILA, Philippines – President Gloria Macapagal-Arroyo has ordered the immediate convening of an energy summit to help cushion the impact of the record rise of world oil prices on the economy.

The President instructed Energy Secretary Angelo Reyes to call a “summit of energy stakeholders” and also instructed energy and trade and industry officials to come up with recommendations for a possible reduction of the government tax on oil, Press Secretary Ignacio Bunye said in a statement.

The Palace announcement came after oil prices in the United States broke through the key psychological barrier of 100 dollars a barrel for the first time last Thursday over worries that crude inventories in the US, the world’s top oil consumer, had sunk to a three-year low.

On Friday prices had eased below 99 dollars a barrel and analysts said the market was likely to enter a quieter period of consolidation before the pivotal meeting of the Organization of Petroleum Exporting Countries (Opec) next month.

Sen. Mar Roxas called on the government to suspend the oil tax for at least six months to give consumers some relief.

“These are not ordinary times that call for extraordinary measures. 100 dollars per barrel is not normal… The oil tax is good for the economy when oil was still at 30 dollars per barrel, but at 100 dollars the oil tax is not good for the people,” Roxas told a media briefing.

The government collects 12-per cent expanded value-added tax (E- vat) on oil and other fuel products.

“We cannot accept that the government is helpless about the surge in oil prices,” said Roxas, adding that Congress might just opt to legislate the tax freeze to force the government’s hand.

Bunye said the President wanted the energy summit “to enhance policies and programmes, attract investments in technology, launch development projects that would impact favourably on energy supplies and prices while helping significantly arrest climate change.” [passage omitted]

Originally published by Philippine Daily Inquirer website, in English 5 Jan 08.

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