Judicial intervention sought on Big 3

MANILA, Philippines - A consumer advocate asked a Manila court yesterday to step into the probe of three big oil firms on allegations of forming a cartel and overpricing.

Raul Concepcion, chairman of Consumer and Oil Price Watch (COPW), called on the Manila Regional Trial Court to void a report of a task force from the Department of Energy and Department of Justice clearing Pilipinas Shell Petroleum Corp., Chevron (formerly Caltex Philippines Inc.), and Petron Corp.

In his motion, Concepcion said the big three violated section 11 of Republic Act 8479, prohibiting cartels among oil firms, and article 196 of the Revised Penal Code, outlawing monopolies and combinations in restraint of trade.

“The oil companies increased the prices of their petroleum products either simultaneously or in quick succession of each other, resulting in very similar prices, differing only by a few centavos, of their petroleum products in the same areas, even when they purchased the crude oil or refined petroleum at different times,” read the motion.

“Hence, they had no valid and legal reason to increase their prices at all or simultaneously or in quick succession.”

Judge Silvino Pampilo Jr. of Manila RTC Branch 26 said Concepcion believes that the compliance report of the DOE-DOJ task force is invalid.

If judicial intervention is granted, the COPW will have the right to file civil and criminal charges against the three oil companies, Pampilo said.

Task Force officials are scheduled to appear before the court at 8:30 a.m. for tomorrow’s hearing of the case.

Concepcion is also expected to appear before the court.

Any person found guilty of violating RA 8479 could go to prison for three to seven years and be fined from P1 million to P2 million.

In their compliance report, the DOE-DOJ task force said the three oil companies did not engage in oil cartelization and overpricing.

The report was based on investigations conducted last year.

“There is no evidence that Pilipinas Shell Petroleum Corp.; Caltex Phils. Inc.; and Petron Corp. violated Republic Act 8479 or the Oil Deregulation Law,” the report said.