DOE to issue guidelines on oil price hikes

The Department of Energy (DOE) is set to issue this week the guidelines to set specific parameters on the reporting of oil companies of their planned oil price adjustments, the country’s top energy official said.

"We have also asked them to give us prior notice. We’re trying to systematize. They will be able to use text, under the e-Commerce Law electronic messaging is just as valid," Energy Secretary Raphael P.M. Lotilla told reporters over the weekend.

A DOE official, in a separate interview, was quick to point out that this move will not go against the rules of oil deregulation.

"The Secretary has the right to know. The guideline will try to put specific details on the earlier memorandum circular issued by former Energy Secretary Isidro Camacho," said the other energy official.

The official said this guideline will be different from the guidelines to be issued by the DOE-Department of Justice (DOJ) task force on the so-called "unreasonable pricing".

Lotilla, however, said the oil firms were able to explain their recent oil price hike and the DOE-DOJ task force cleared them from the "unreasonable pricing" issue. "We’re trying to promote transparency," he said.

"As you’ve noticed what the DOE-DOJ Task Force has done, we have asked the oil companies to explain why they consider their last P75-centavo increase as not being unreasonable, as the language of the law talks about this being unreasonable or not," he said.

The energy secretary said, " in that case, we have been able to ask them to explain, I think that it is good that the oil industry is placed in a position that is challenged to be more transparent."

"The documents with the SEC, financial statement and reports of oil firms are public records, but we will try to assist the media and consumer groups by making available such records from the DOE itself," Lotilla said