MANILA – Millions of Filipinos, particularly housewives throughout the country, are up in arms over the “mysterious disappearance” of liquefied petroleum gas (LPG) from the market.
The acute lack of LPG, which has become the main source of fuel for cooking in households, has led to increasing demands for the resignation of two members of the Arroyo Cabinet – Secretary Angelo Reyes of the Department of Energy and Secretary Peter Favila of the Department of Trade and Industry.
In particular, Reyes is being blamed for the disappearance of LPG from the market since it was first noticed by consumers as early as the first week of December 2008
On the other hand, Favila is being held responsible for ensuring the availability of basic items, like LPG, in the market to be sold at fair and reasonable prices.
For practically one month in the whole of January this year, Reyes kept assuring the public in radio and television interviews that the shortage was only temporary as he claimed the demand for the product had increased as the millions of households nationwide were celebrating the holiday season.
The energy secretary also assured there was enough supply and that there was no hoarding among following his inspection of the LPG plants in the country’s main island groups of Luzon, Visayas and Mindanao.
But despite the Reyes assurances, consumers continued to flood especially radio stations with their complaints that no LPG was available in the market.
And if there are supplies available, this could only be bought at an overprice equivalent to about $12 per LPG tank weighing 12 kilograms each, according to the consumers.
They also denounced Reyes and Favila allegedly “coddling” the hoarders instead of protecting the interests of the consumers already suffering from the severe impact of the global financial and economic crunch.
Before the acute shortage of LPG was noted, each LPG tank was worth only less than $8 particularly when the price of petroleum in the world market went tumbling down.
As the complaints mounted, Vice President Noli de Castro joined the fray and blamed unscrupulous LPG refillers and dealers for creating an artificial shortage so they could cash in on such shortage.
In an apparent public rebuff of Reyes, De Castro also warned hoarders they would be dealt with to the fullest extent of the law as he pointed out:
“I believe that there is an artificial LPG shortage created by unscrupulous refillers and dealers who want to take advantage of our millions of consumers. I warn those who are manipulating the market that we will definitely go after them and hold them liable under the law.”
De Castro aired the warning following reports there was rampant hoarding because the dealers were awaiting official word from the major suppliers about the increase in the prices of LPG by as much as eight US cents per kilogram.
Observers noted that true enough, LPG tanks were slowly being made available to the public when the price increase was announced on Friday.
But this did not stop other government officials, like Speaker Prospero Nograles of the House of Representatives, who supported the move of the chamber’s Committee on Energy to look deeper into the sudden disappearance of as well as the increase in the prices of LPG.
Nograles, who represents Davao City in Mindanao in the House, said the inquiry should determine if these arose from the natural results of global market forces or price manipulation through artificial supply shortages.
The speaker stressed that the government has the constitutional mandate to ensure that vital public utilities and consumer goods and services are available and traded in a fair and just business environment.
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