Palace orders review of recent fuel price hikes

PRESIDENT Aquino has ordered a review of all oil price increases amid the rising prices of
commodities.

“We have to review whether a price hike is warranted or unwarranted,” the President said
during his brief visit to Davao City last Thursday.

Aquino explained that players in the oil industry should come up with a formula that would
ease the continuous oil price increase.

The President said he expects oil price increases to end with the resolution of the conflict in
the Middle East, except for Yemen and South Africa.

He also welcomed the positive developments in Libya where the contending parties have
started talking.

Aquino has refused calls, especially from the militant groups, for him to reduce or abolish the
value added tax (VAT) on oil products and scrap the Oil Deregulation Law.

The President said calls for such moves as “scrap the VAT” actually only sound good but are
not feasible at all.

He said that scrapping VAT would mean the loss of necessary source of funds for needed
government operations.

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