Court junks petition vs oil price increases

MANILA, Philippines - A Manila court rejected yesterday a petition to stop Pilipinas Shell Petroleum Corp., Chevron Philippines Inc. (formerly Caltex Philippines Inc.) and Petron Corp. from raising pump prices weekly on grounds that the remedy being sought had no factual basis.

Judge Silvino Pampilo Jr. of Manila Regional Trial Court Branch 26 said the power to issue a preliminary injunction requires caution, deliberation and sound discretion.

“It is the strong arm of equity that should never be extended unless to cases of great injury, where courts of law cannot afford an adequate or commensurate remedy in damages,” he said, quoting a Supreme Court decision.

“Every court should remember that an injunction is a limitation upon the freedom of action of the defendant and should not be granted lightly or precipitately.

“It should be granted only when the court is fully satisfied that the law permits it and the emergency demands it.”

Pampilo said he denied the petition for temporary restraining order for lack of merit.

“Although this Court sympathizes with the cry of the masses and the seeming inability of the government to act and remedy the situation, this Court cannot issue an injunctive relief to stop oil price increase absent any factual or legal basis,” read the court order.

After a careful and judicious review of the arguments of the parties and the invited experts, petitioners failed to establish a clear and unmistakable right to warrant the issuance of an injunctive writ, Pampilo said.

Responding to the decision, Vladimir Cabigao, lawyer of petitioner Social Justice Society (SJS), told The STAR in a text message: “We will not stop our campaign until we will be able to destroy the oil cartel.”

Cabigao said they would file a motion for reconsideration on the hope that the court would reverse its decision.

They cannot believe that Pampilo Jr. had rejected their petition after ordering the three oil firms to open their books, he added.

Petitioner SJS presented two witnesses, Consumer and Oil Price Watch chairman Raul Concepcion and former National Economic and Development Authority (NEDA) chief Ralph Recto.

Respondent oil companies presented Dr. Peter Lee of the University of Asia and the Pacific.

Two experts, Energy Secretary Angelo Reyes and University of the Philippines School of Economics professor Solita Monsod, were presented by the court so it could “intelligently rule on the motion of petitioner.”

Cabigao said the action of Shell, Chevron, Petron and the other players to hike their prices weekly is becoming habitual and unrestrained, and the public could not effectively demonstrate their indignation.

“Respondents’ claim that they had to shift their prices weekly on account of the movement of crude oil prices in the world market is dubious, if not deceitful,” he said.

Cabigao said the shifting of pump prices would have an impact on prices of transportation, food and other commodities.

Cabigao said in the Oil Deregulation Act of 1998, the Department of Energy is required to maintain a periodic schedule of present and future inventory of petroleum products for the purpose of determining the level of supply.

Section 8 of DOE Circular No. 2003-01-001 provides that all oil companies submit to the DOE weekly reports, prepared under oath, of their inventory on a per crude and per product basis, including their actual and projected importations and local purchases, he added.

Cabigao said the NEDA, the policy-making body of the government on economic affairs, is disputing the pricing of petroleum products of respondents. 

Even the government itself is not convinced about the propriety of the pump prices of petroleum products of respondents, he added. 

On Aug. 9 last year, the SJS asked the RTC to stop Shell, Chevron and Petron from further hiking their pump prices on a weekly basis.

The next hearing on the declaratory relief case was set on Feb. 1 and 4 at 8:30 a.m.