Lawmaker asks House to probe alleged overpricing by oil firms

MANILA, Philippines - Now that the price cap on petroleum products has been lifted, an independent lawmaker said the House of Representatives should conduct an investigation on reports that oil firms have been jacking up prices unnecessarily.

Nueva Ecija Rep. Edno Joson said the financial books of big oil companies like Shell, Chevron and Petron should be opened to find out if there is indeed collusion among them to create an artificial shortage of supply.

“There should be an inquiry in aid of legislation so we may know the price component or computation per liter of oil, such as cost of procurement, import cost, landed cost on return on investment, forex component, wholesale and retail price etc,” he told The STAR.

He said House members must also be briefed on the real market price of oil.

“There should also be comparative costing. It’s important that we know if there is overpricing or if oil price per liter is competitively priced,” he said.

Former National Economic and Development Authority director-general Ralph Recto, who is now seeking re-election to the Senate, revealed that prices of gasoline and diesel in the country are overpriced by a maximum of P8 per liter.

Speaker Prospero Nograles, on the other hand, discarded suggestions of an investigation, saying it takes a long process. Energy officials, he said, should control the situation.

“That (probe) takes such a long process. It’s more of execution than policy. We in the House set the policy. Energy officials should just execute,” he said. 

Nograles said the government can take over such utilities in a worst-case scenario.

“That (government takeover) is perfectly legal,” he said.

DOE did not do its job

Nograles said Energy Secretary Angelo Reyes, accused of lawyering for the oil firms, failed to control the situation.

“This business scheme (artificial shortage) can stop if our energy officials will only run after them. The remedy is simple. The government should put people who can really handle the job,” Nograles said.

“Secretary Angie could have at least called up these oil companies and appealed for compassion. Millions of people have lost their homes and are largely dependent on whatever support that is given to them by others. This makes me wonder if the DOE is still part of the government,” he added.

Pampanga Rep. Juan Miguel Arroyo, chairman of the House committee on energy, said that he might be “forced” to recommend the reimplementation of the price control on pump prices if oil firms do not deliver on their promise to implement a staggered price increase.

Anak Mindanao Rep. Mujiv Hataman said a probe may be necessary to find out if oil companies are just trying to fool the public into believing that there is indeed a shortage.

He questioned why there is a sudden shortage when the government has lifted price control on oil prices.

Businessman Jose “Joey” de Venecia III, son of former House speaker Jose de Venecia Jr., said the DOE “totally mishandled” the control on oil prices.

“The government should have done everything to keep the prices of oil and petroleum products down in the weeks following ‘Ondoy’ and ‘Pepeng’,” he said.

“Whether in the private or public sector, the best managers or executives are those who think outside the box. They are the ones who can ride out a storm with aplomb. Energy Secretary Reyes offered nothing new to the public,” he said.