'Big 3' oil firms want cartel case scrapped

MANILA, Philippines - Lawyers of the country’s three largest oil firms urged a Manila regional trial court (RTC) judge yesterday to dismiss a case filed against them for allegedly acting as a cartel and fixing oil prices, saying the plaintiff apparently is no longer interested in the case.

Lawyers Erwin Herrera of Chevron Philippines Inc., Gener Asuncion of Petron Corp., and Rowena Garcia Flores of Pilipinas Shell Petroleum Corp. asked the judge during yesterday’s hearing that the case be dismissed because lawyer Vladimir Cabigao, counsel of the civil society group Social Justice Society (SJS), failed to submit his pre-trial brief and appear in court yesterday.

SJS had asked the Manila RTC to compel Shell, Chevron, and Petron to open their books for investigation by the Commission on Audit (COA), Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR).

Manila Judge Silvino Pampilo Jr. conducted a hearing on the SJS petition for declaratory relief that was filed on March 21, 2003, to determine whether there is really a monopoly, predatory pricing or cartelization being practiced by the oil firms.

The SJS raised the issue of whether the oil companies are operating like a cartel and engaging in predatory pricing under Section 11 of Republic Act 8479 (oil deregulation law), and monopoly and combination in restraint of trade prohibited under Article 186 of the Revised Penal Code.

In a two-page order, Manila RTC Branch 26 Judge Silvino Pampilo Jr. ordered Cabigao to file a comment or opposition within 10 days from receipt of the order.

Pampilo set the next hearing tentatively on June 28.

In a telephone interview, Cabigao said he was sick yesterday and could not come to court. He said he would file his pre-trial brief before the court on or before the deadline.

The defense lawyers also said the counsels of the transport groups Pasang Masda and Pinag-isang Samahan ng mga Tsuper at Operaytor Nationwide (PISTON) also failed to appear in court.

Records showed Petron, Chevron, and Shell had earlier submitted to the court their respective pre-trial briefs, which summarizes their position on the case.

Petron, Chevron and Shell had mainly cited lack of jurisdiction by the court in handling the “declaratory relief” case filed by SJS.

Pampilo said that in his earlier order, the court ruled that it has jurisdiction to hear the case, notwithstanding the results of an investigation conducted by the joint Department of Energy-Department of Justice Task Force, which found no evidence of any violation of the oil deregulation law.