With the lifting of the Palace-ordered oil price cap becoming more imminent, consumers are now bracing for “big-time” price increases in pump fuel and liquefied petroleum gas (LPG).

At least three oil companies — small players Eastern Petroleum, Flying V Philippines and Seaoil Philippines — have bared intentions of immediately hiking product prices once Executive Order (EO) 839 or the oil price freeze order is revoked by President Arroyo.

This developed as the joint Department of Energy-Department of Justice (DoE-DoJ) task force confirmed on Friday that it has already forwarded to Malacañang a “very strong recommendation” and a draft order to lift the price ceiling.

Justice Secretary Agnes Devanadera said the task force has recommended the lifting of the EO in favor of a more “targeted calamity assistance program” since most of Luzon has recovered from the damage caused by typhoons.

Only Arroyo’s signature is needed to rescind the controversial EO, Devanadera said.

Fernando Martinez, Eastern Petroleum president and Independent Philippine Petroleum Companies Association (IPPCA) chairman, last week said that they would implement P5 per liter increases on pump but in the form of smaller, weekly hikes.

The “staggered” hike scheme, which was meant to soften the blow on consumers’ pockets, was supported by Flying V Chairman Chito Villavicencio and Seaoil President Glenn Yu.

Oil executives said they have been losing R5 for every liter of gasoline and diesel sold since complying with the EO some three weeks ago. During that time, the retail price of gasoline (unleaded) was nailed at P36 and diesel at P28.

But Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (PISTON) Secretary General George San Mateo expressed fears that the upcoming increases could reach up to R10 a liter, which is the current difference between fuel prices in Luzon and Visayas-Mindanao.

The transport group leader also bared that he is now meeting with regional chapters and ally groups to come up with a nationwide protest action if ever the price freeze is scrapped.

LPG Marketers Association (LPGMA) President Arnel Ty said that cooking gas prices would definitely go up come December, with or without an EO. “It’s about time to reflect the international prices because no businessman would continue to sell at a loss,” said Ty, who heads the group of independent LPG retailers.

The LPGMA is looking to jack up its retail price by a hefty R3 a kilo, translating to a R33 add-on for each 11-kilo tank of cooking gas. The group’s current suggested retail price is P580, Ty said.

Meanwhile, a major player in the oil industry pursued its petition for temporary restraining order against EO 839 despite the recommendation of the energy and justice departments to lift the price cap on petroleum products.

The battery of lawyers of Pilipinas Shell Petroleum Corporation (Shell) told Judge Winlove Dumayas of the Makati Regional Trial Court branch 59 that the petition for a TRO against EO 839 should continue even after Assistant Solicitor General Marissa Guillen presented a draft memorandum from the DoE-DoJ taskforce suggesting the withdrawal of the Malacanang issuance.

Shell counsel John Jerico Balisnomo said they will continue seeking for legal remedies to prevent the company from incurring more losses until after Malacanang lifts the price cap.

Meanwhile, lawmakers Friday criticized the National Economic Development Authority (NEDA) for backtracking on its position that prices of petroleum products were overpriced, saying political pressure may best explain this sudden turnaround.

(With reports by Kris Bayos and Edmer F. Panesa)