MANILA, Philippines ? With oil companies promptly raising the prices of petroleum products as soon as Executive Order 839 was lifted on Monday, Malacañang warned it would not hesitate to order another price freeze if the pricing behavior of the firms becomes abusive.

The government is ?not left without legitimate means of (making sure) that there will be no abuses under the Oil Deregulation Law,? Executive Secretary Eduardo Ermita reminded the oil companies.

?Nothing would prevent the President from resorting again to an EO that will return the effect of 839,? he told reporters.

Shortly after President Gloria Macapagal-Arroyo ordered the lifting of the order that froze petroleum prices at Oct. 15 levels, Pilipinas Shell Petroleum, Petron and three of the smaller oil companies announced an increase in the price of diesel by P2 per liter, gasoline by P1.25 to P1.50 per liter, and kerosene by P1.50 per liter.

The liquefied petroleum gas (LPG) products of Shell and Petron are also expected to increase by P2 a kilogram.

Joint task force

Ermita said the joint task force composed of the energy and justice departments ?can always be activated to check the unreasonable increase of prices.?

He said the National Price Coordinating Council under the Department of Trade and Industry has teams deployed to monitor prices of oil products and basic commodities.

If they find ?unreasonable? increases, they will take measures, he said.

Ermita also warned the oil companies against creating ?artificial shortages,? which was apparently used to good effect to pressure the government into lifting the price caps.

?They should not announce and make artificial shortages when it?s very easy to check. We can always use our power of investigation and regulation,? he said.

Pilipinas Shell, meanwhile, announced Wednesday its assistance package for the calamity-stricken areas of Luzon, which will include discounts for fuel and LPG, as well as a P25-million scholarship package.

Shell?s part of bargain

Edgar Chua, Pilipinas Shell chair and president, said the package was the company?s fulfillment of the commitment the oil companies made to the President.

Ms Arrroyo made it a condition for lifting EO 839 that the oil firms give discounts in certain areas, stagger price increases, and pour more investments into the country.

Shell will provide, until the end of the year, discounts of P2 a liter on diesel and P1.50 a liter on premium, unleaded and regular gasoline for drivers of public utility vehicles (jeepneys, taxis and tricycles) through the Shell Pepeng Pasada loyalty program.

These discounts will be implemented in 44 selected Shell retail stations in Benguet, Baguio City, Pangasinan, Eastern Laguna, Rizal, Ilocos Norte, Ilocos Sur, Mountain Province, Isabela, Cainta, Marikina, Malabon and Pasig, said Roberto Kanapi, Shell?s vice president for communications.

Drivers of public utility vehicles will be issued Pepeng Pasada cards for control purposes.

Pepeng Pasada members will also be given a 50-percent reduction on redemption points requirement, so they can easily avail of appliances and other personal items.

Discount coupons

Shell will also be issuing LPG discount coupons worth P20 each for 100,000 Shellane customers, to be distributed through the Department of Social Welfare and Development, which will be valid until the end of January 2010.

The company will also be giving vocational scholarships to nominated dependents of public utility vehicle drivers. The package to benefit about 1,000 scholars is in addition to an existing Shell scholarship program called the Gas Mo, Bukas Mo II with about 50 scholars.

Transport groups said that despite the lifting of the oil price caps, they would hold off fare increases until after Christmas to ease the financial burden of households still reeling from the effects of recent storms.

The Unified Transport Koalisyon (1-Utak) party-list group said it had asked its member operators and drivers to absorb the increase in pump prices of diesel and gasoline.

?We will try to prevent any hike before Christmas,? said 1-Utak party-list member Vigor Mendoza. With Paolo G. Montecillo