DOE has power to probe fuel price disparity

BACOLOD CITY, Philippines — The Department of Energy has the authority to investigate the practices of oil companies and find out the reasons for the huge disparity of fuel prices in Bacolod and the rest of Negros Occidental compared to other cities and provinces.

Representative Alfredo "Albee"  Benitez (3rd District, Negros Occ.) said Energy Secretary Jericho Petilla can invoke such powers provided for under Republic Act No. 8479 or the Oil Deregulation Law.

Section 15 of RA 8479 states that the secretary shall have the powers "to gather and compile appropriate information concerning, and to investigate from time to time the organization, business, conduct, practices, and management of any person or entity in the industry."

The same provision grants the secretary the power to recommend to a government agency the suspension or revocation and termination of the business permit of an offender. "The sentiment we get is that the DOE has been focusing on the supply side and has not been investigating the price mechanism of oil companies in different parts of the country," Benitez said.

Benitez made this update during an informal meeting of stakeholders composing the Visayan Oil Price Watchdog in this city. "We agreed that this will be an informal group. It was just a gathering of sector representatives to find out on why we have high disparity of oil prices and find possible solution and answer," he said.

Fuel prices in Negros Occidental are now at P4 to P5 per liter higher than in Metro Manila, said the congressman, adding that the members of the watchdog had initially agreed to urge Petilla to exercise his power to probe oil companies over the price disparity.

Benitez said this action from Petilla is needed because the watchdog's mandate does not include punishing or penalizing, or ordering oil companies to reduce oil prices, but to try to find information on why there is a price disparity. (FREEMAN)