Govt mulls on freezing oil prices

With the surging, and almost uncontrollable, rise of oil prices, the Philippine govt is actually thinking of drafting an Executive Order that will freeze oil prices.

Gas Station

According to Justice de Lima, this has happened before:

“Talking about possibilities, there’s always such a possibility of coming up with an executive order freezing the oil prices. If it comes to that, it will basically and primarily be an executive decision or action,” De Lima told The STAR.

She said the previous Arroyo administration had resorted to freezing oil price increases in 2009, through Executive Order 839.

De Lima said such a measure would be “legally feasible.”

Although it would be good in the short run, it’s the long term effects that may concern economists as freezing oil prices may sometimes lead to an even bigger oil price once the freezing has been done.

[Article via: The Philippine Star | Image via: Wikimedia Commons (CC by-SA 3.0)]

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