A business group on Wednesday blamed Philippine president Gloria Macapagal-Arroyo's proposal for emergency powers to allow her to impose rationing on petroleum products, warning it would damage the economy and result in corruption.

The plan "is an ill-advised move. The current problem is one of high prices and not of supply shortages," the business group called Makati Business Club said in a statement.

"Rationing may only encourage panic-buying as people are misled into thinking that there may be shortages of supply," the group said.

The Makati Business Club added that rationing measures "may lead to a greater potential for corrupt practices," including creating an oil black market that would "deprive the government of tax revenues."

The Makati Business Club has a board of members from Philippines' most influential enterprises.

Arroyo said last week that "forceful and drastic steps" were needed to meet the threat of rising oil prices. She stressed that the government would ask the congress to pass a law giving her emergency powers to handle further sharp price rises, including fuel rationing if necessary.

(Xinhua News Agency August 24, 2005)