PGMA calls on nation to help avert possible energy crisis
Manila (8 November) -- With oil prices rising worldwide, President Gloria Macapagal-Arroyo has called on all sectors to help averting a possible crisis, saying the nation must move quickly, especially the leaders of government and private industries to lessen the blow of rising prices of diesel, gasoline and Liquified Petroleum Gas (LPG).
Economists say the country is not yet in crisis, but may get there unless something significant or effective is being done. So far, the country is shielded from the effects of the rising oil prices by the present strength of the Philippine peso.
Oil prices in the world market jumped to a new trading record above $98 a barrel Wednesday due to strong demand, limited surplus capacity, falling inventories and geopolitical concerns. The price of crude oil is expected to hit $100 a barrel in the coming weeks until the end of December 2007 due to the winter season in the western hemisphere, the higher-than-expected inventory drawdown in the United States, and a weak dollar.
According to acting NEDA Secretary Augusto Santos, without immediate government and public action, the country could face a crisis that includes runaway inflation, loss of competitiveness, productivity and jobs.
Analysts explains that the latest round of oil price hikes carries wide-ranging effects on the economy and will incur greater damage among small entrepreneurs and low-income earners, who cannot cope with rising prices of consumer goods.
To minimize the effects of soaring oil prices on the country, the Department of Energy (DOE) has renewed its efforts toward energy conservation, calling on consumers, transport sector and industries alike to implement various energy conservation measures. It is important that the people feel the situation, a crisis that is looming, and that we have to address it together. (PIA-MMIO) [top]
