DOE warns against price hike of oil products sans approval

Oil players should not increase prices of their products without seeking approval first from the Department of Energy.

This was the recent reminder of the DOE, especially with the expected price increase of oil products, particularly liquefied petroleum gas, this month or by February when the existing 10 percent Expanded Value Added Tax will be raised to 12 percent.

Energy Secretary Raphael Lotilla made the warning to oil dealers and retailers about Department Circular No. 2005-08-007, issued on August 11 last year.

The Circular stipulates that any person or entity engaged in selling petroleum products such as gasoline, diesel, kerosene, jet fuel, bunker fuel and LPG must notify the DOE within one day, but not less than six hours, prior to implementing any intended price increase and prior to any public announcement of said movement.

Failure to comply with the regulation is punishable with imprisonment of two years and fine ranging from P250,000 to P500,000 as stipulated in the law, said Lotilla.

A DOE monitoring showed that, as of last January 3, prevailing retail prices of 11-kg LPG in Metro Manila ranged from P479.50 to P515 for Caltex, from P475 to P510 for Petron Gasul, from P505 to P518 for Shellane, and from P474 to P524 for Total Gas.

However, while the DOE continues to monitor and exercise its powers to sanction violators of the law, Lotilla said consumers, particularly the households, must also exercise their power of choice and source their LPG only from authorized dealers and retail outlets that offer lower prices.

"We urge consumers to be more vigilant in sourcing their LPG products and to work closely with DOE in monitoring and reporting unsafe and unfair trade practices in the LPG industry," Lotilla said in a press statement.

Lotilla also called on the LPG Industry Association, Inc., the Confederation of LPG Refillers, the LPG Refillers Association, and the LPG Marketers Association to ensure that their respective members are not engaged in any malpractice such as under-filling, using substandard LPG tanks, and tampering of cylinders. - Wenna A. Berondo