WHO WILL BLINK FIRST? Unable to convince Malacañang to lift Executive Order 839, which freezes fuel prices in Luzon, some gasoline stations are forced to cut operating time from 24 hours to just 16 hours a day like this station in Philcoa, Quezon City.

As their finances get battered by the price freeze on oil products imposed by Malacañang, many of the industry’s smaller players have been forced to cut operating hours starting Friday mainly because they are running out of supply.

The shortened operating hours and supply shortages in gasoline stations have been causing exasperation among motorists, industry sources said.

Oil companies said it is becoming more difficult each day for them to serve the needs of consumers “since you are being directed to sell your products at a loss”.

For their part, oil majors Petron Corporation and Pilipinas Shell Petroleum Corporation said they are still operating normally but admitted they are also feeling the pinch of supply shortages because of volume shift.

“We have noted sudden increase in our demand, especially when other players temporarily stop their operations as they wait for the next batch of their supply to come. Unfortunately, though, we cannot accommodate such sudden spike in our volumes,” a source from one of the major oil companies noted.

Industry players said it is a reality of supply and demand that if a certain station is already running out of products, its hours of operations will also be curtailed.

As of press time, it was learned that the oil companies have decided to exhaust legal remedies through the filing of petition for temporary restraining order (TRO) at a Makati regional trial court against Executive Order 839.

Malacanang for its part said oil companies should desist from blackmailing the government to compel the lifting of the price freeze on petroleum products “because it is not working.”

Press Secretary Cerge Remonde at the same time also appealed to oil firms to make some sacrifices and comply with EO 839 which was issued by President Arroyo for the duration of the state of calamity in Luzon.

Remonde said the government would not deny the oil companies “legitimate profit” but they should at least consider the welfare of families still trying to recover from the devastation brought by the recent typhoons.

“The government is not out to drive them to bankruptcy. We are just asking them to please understand the situation that our country and our people are in because of the consecutive calamities.

“We appeal to stop these grim warnings, dire predictions because it does not help the people,” he said in a Palace news conference.

"We continue to appeal to oil companies and their executives to stop raving and ranting because they are not helping the situation any. Definitely, they cannot blackmail this government," he added.

Remonde said the President is unfazed by threats of an imminent oil shortage supposedly arising from a prolonged implementation of the EO 839 and would continue to do the “right thing” and enforce the price freeze.

He said they are aware that the oil companies have adequate stocks given their recent long-term contracts.

“The President is determined to protect the interest of consumers at this time of calamity where people need all the help they can get to recover,” he said.

Remonde denied that the Department of Justice has recommended a partial lifting of the EO and said the joint task force of the DoJ and the Department of Energy will continue to monitor the compliance of the oil companies with EO 839 as well as check their oil inventories.

“If they will divert or hoard supply then we will throw the book at them,” Remonde said.

On warnings that some oil companies would implement a steep price hike once EO 839 is lifted, Remonde said: “Let us allow the spokesmen and executives of oil companies let off steam. Let us not go into a word war with them.”

“Let us just apply the powers of government, the powers of state under the law in so far as what is the good of the majority,” he said.

On reports that some traders of liquefied petroleum gas will raise prices of their products in Visayas and Mindanao, Remonde said the Department of Trade and Industry has been directed to look into the matter if these are justified.

Petron has actually imposed a P3.50 per kilo increase on prices of liquefied petroleum gas (LPG) prices in the Visayas and Mindanao.

Petron Spokesperson Virginia Ruivivar said the hike, the first by any oil player on the sensitive commodity since the first week of September, took effect at 6 a.m. Friday. The increase translates to a P38.50 increase for every 11-kilo cylinder of cooking gas.

Ruivivar cited the rise in world contract prices for November for the increase. Their LPG prices in Luzon will remain unchanged, she said.

World contract prices for cooking gas jumped up $57 per metric ton for November, according to Arnel Ty, head of the LPG Marketers Association (LPGMA).

Ty assured that his group of independent retailers will not raise prices in compliance with the EO, although some LPGMA member-brands with outlets in Quezon City were recently found to have overpriced tanks.

Data compiled by the Bulletin/ Tempo showed that the customary LPG cylinder price last month was between P575 and P610 for big oil firms such as Petron and P520 for the LPGMA. The LPGMA last jacked up prices on August 31.

Meanwhile, Opposition Sen. Francis Escudero pressed Congress Friday to act on proposed amendments to the controversial Oil Deregulation Law when both the Senate and the House of Representatives resume regular sessions on Monday.

“The law has become unresponsive to our needs. It has failed to spur competition and establish a regime of fair prices,’’ Escudero, chairman of the Senate ways and means committee, said.

Escudero joined Sen. Joker Arroyo in slamming the callousness of oil companies and their ‘’lackeys’’ by continuously criticizing without letup EO 839. (With reports from Ellson Quismorio and Mario Casayuran)