President Arroyo Tuesday ordered an immediate assessment if Luzon is still under a state of calamity, several weeks after the onslaught of deadly storms that left more than a thousand people dead and hundreds of thousands homeless due to floods and landslides.

The President asked the National Disaster Coordinating Council (NDCC) to study the calamity situation even as the government refused to believe the oil companies’ claims of an imminent fuel shortage supposedly due to the prevailing price freeze on fuel products in Luzon while the state of calamity is in effect.

Pending the review of the calamity situation, Palace officials urged the public to remain calm despite the alleged dwindling oil inventory and said the government is committed to exert efforts to protect the people’s welfare.

The latest presidential directive was issued during a meeting of the cabinet in Loboc town in Bohol where food and oil situation, rehabilitation works in typhoon-hit provinces, and the country’s rosy economic prospects were tackled.

“The President asked the NDCC to study if we are still in a state of calamity. That will be the first step to determine this issue on the prices of oil,” acting National Economic Development Authority (NEDA) chief Augusto Santos said after the cabinet assembly.

The lifting of Executive Order 839 which pegged the prices of oil products to October 15 levels in Luzon would depend on the recommendation of the NDCC, according to Santos.

Santos said the state of calamity in Luzon was the “legal basis” of EO 839 which President Arroyo issued last October 23 and which has since drawn sharp criticisms from the business sector.

“NDCC is an inter-agency committee. It will not be just Defense Secretary Gilbert Teodoro who will decide on the matter. It is a legal body and they will have to meet as soon as possible and come out with their decision,” he added.

On the claims of Energy Secretary Angelo Reyes that the supply of finished petroleum products would run out within 13 days, Santos said the government “does not necessarily believe” such warning.

He said there is no reason for the public to worry about oil supply given the appropriate actions taken by the government.

Deputy Presidential Spokesman for economic affairs Gary Olivar even demanded “more transparency” from oil companies to verify their claims that they are losing profits over the implementation of EO 839.

Olivar said the government would not be intimidated by the oil companies and is determined to shield the public against runaway oil price increases while Luzon is under a state of calamity.

“The government is not going to be blackmailed by anybody. Nobody should make a mistake of trying to play chicken with the government. In fact, if an oil company or any company was to do something like that, that would be viewed as reckless behavior by their shareholders and they ought to be properly cautioned by their shareholders,” he added.

While it understands that oil companies are trying to protect their interest, Olivar said the government has a responsibility to “push back and push hard to make sure the people’s interests are protected.”

Reyes, for his part, stood firm behind his disclosure that domestic oil inventories would only last for two weeks, but insisted the public should not worry.

“Huwag tayong mag-panic dahil sa nakakasiguro ako na kaya naman nating lutasan itong problemang ito. Wala naman problema na walang solusyon,” the energy chief said over radio.

Reyes explained that he merely told the truth about the remaining oil stocks and did not mean to alarm the public.

“Mahirap namang ibulaga natin ang tao at hindi tayo nagsasabi ng totoo. Pagdating na panahon na iyon, sasabin nila bakit hindi mo sinabi,” he said.

Despite criticisms on his competency as energy chief, Reyes still has the support of Malacañang. Olivar said the President continues to trust the former military chief as a member of the cabinet.

“The President has confidence in cabinet members otherwise they won’t be in the cabinet. Secretary Reyes is one of the longest serving cabinet members,” he said.