It is better for the government to put money in the pockets of consumers than intervene in market prices, a government press release said.

Albay Governor Joey Salceda, one of President Gloria Macapagal-Arroyo's economic advisers, said price controls have never proven to be correct.

In a press briefing in Malacañang this morning, the governor shot down proposals to repeal the Oil Deregulation Law. He also said it is not good for government to run private business.

“A better option for government to take is to “just give them (the poor) money,” he said. “This is what the President is doing -- giving conditional cash transfer and loan moratorium.”

He explained that if government will regulate the supply side, the natural reaction would be for the market to shrink. “That is why we approved the P86 billion demand-side relief for individuals and small and medium entrepreneurs,” he stressed.

Salceda pointed out that it is better for government to buy the oil and give it at subsidized prices to the transport sector.

Oil firms on Tuesday hiked their pump prices “due to the drastic change in prices in the international market.”

Oil prices in the world market was pegged at $ 79 to $ 80 per barrel last week.

Independent oil player Eastern Petroleum implemented a P2.00 per liter increase for diesel and P1.50 per liter for all its gasoline products.

Pilipinas Shell increased prices per liter of diesel by P2.00, unleaded premium gasoline by P1.25, regular gasoline by P0.85, and kerosene by P1.50.

Petron Corp. increased the pump price of premium gasoline by P1.25 (value-added tax included); regular gasoline by P0.85; diesel by P2.00, jet fuel/kerosene by P1.50; and fuel by P0.75.

In other areas except Northern Luzon, independent oil player Total Petroleum adjusted pump prices by P2.00 per liter for diesel, P0.85 per liter for regular gasoline and P1.25 for liter on premier unleaded, E10 and Protec (all VAT included), the press release said.*

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