Executive Order 839 lifted by President Arroyo
Posted on November 13th, 2009
The Executive Order 839, the government order which froze the price on petroleum products and basic commodities, has been lifted by President Gloria Macapagal Arroyo. The lifting of EO 839 will made effective on Monday. EO 839 froze pump prices at October 15 levels in Luzon, which is still officially under a state of calamity.
“I shouldn’t leave the country without addressing the issue of Executive Order 839. I want to assure our investors that the price controls were our temporary response to the calamities, and the private sector is viewed as a partner, not an enemy or a nuisance, by the state,” Arroyo said.
Oil firms and traders, however, were made to promise to recover their losses on a staggered basis, stabilize prices and supply of goods, and put in more investments and programs for the poor.
The decision to lift EO 839 was announced by Arroyo last Friday during an emergency meeting held at Malacañang with representatives of oil companies, chamber of commerce, distributors and retailers, as well as officials of labor and transport groups, two hours before her scheduled departure for Singapore for the Asia-Pacific Economic Cooperation (APEC) Leaders’ Summit.
In her announcement, the president said, “We hope there will be no drastic increases when we lift the EO. And if the world market dictates increases, you make it on a staggered basis over time.” She also sets three conditions for the lifting of the EO to cushion the expected surge in fuel prices.
Arroyo said that some form of subsidy or discount in selected areas, particularly those hit by the recent natural calamities, must be provided by the oil companies. The second was that, companies should also recover their reported losses or adjust to changes in global crude prices on a staggered basis. And that, oil firms should also increase their investments in the country to spur economic activity and create jobs.
“Please comply with the conditions we set today,” the president reiterated.
“The bottom line is that we would like fares to remain the same in the next sixth months, assuming the world markets remain stable. If international pump prices become very high, then we can review this policy,” Arroyo said.
