Press Release
November 6, 2007

GORDON ISSUES WARNING OVER RISING OIL PRICES

Senator Richard J. Gordon yesterday urged the national government to prepare safety measures as he issued a sober warning on the risks to the country's economy posed by the surging price of oil. "With the price of oil nearing US$100 per barrel, the Philippines must be prepared to tighten their belts." Gordon said.

Gordon added that "We should develop the domestic economy to cushion the effect of the rising oil prices. We should create livelihood programs and make entrepreneurs out of our people in order to cushion the effects of these oil hikes."

He emphasized that demand management should be undertaken to efficiently distribute the oil to consumers.

Gordon stressed that there is a need to adopt energy saving measures to improve mileage for oil consumers. Simple actions for motorists such as keeping tires inflated, driving the speed limit in highways, cutting back on idling, carpooling or taking public transit and keeping motor vehicles tuned up would increase mileage in the existing fleet.

The blow from the recent surge in oil prices would have been worse if not for the "resilient economy" and strong peso.

World oil prices reached a record-high of $96-a-barrel Thursday after a surprise drop in US crude stockpiles raised concerns about supplies for the coming winter demand.

Reports have said analysts do not see anything standing in the way of a run to US$100 per barrel after the Organization of Petroleum Exporting Countries (OPEC) continued to resist calls to hike production.

OPEC said the soaring market was beyond its control, with the cartel blaming speculation and politics for the surge in price.

Gordon explained that the oil price increase should serve as a continuing wake-up call for all sectors as well as the government to conserve energy and find other sources of energy.

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