The Department of Energy (DOE) acknowledged that it has no authority to stop oil companies from selling fuel purchased at lower prices before the Middle East conflict at higher rates, citing the Oil Deregulation Law.
During Monday’s briefing of the House Committee on Ways and Means, Manila City 2nd District Representative Rolando Valeriano questioned DOE officials about the steep price hikes set for Tuesday, despite local fuel stocks being acquired before the US-Israel attack on Iran.
Energy Director Rino Abad explained that fuel pricing is dictated by the free market.
“Under the deregulated regime, they can change the price anytime they want, kaya lang nagkaroon ng arrangement na i-weekly na lang natin para naman stable (ang price) sa buong week,” he said.
Abad added that the country’s fuel stockpile could last until April.
Committee chairperson and Marikina City 2nd District Representative Miro Quimbo pressed further, asking why the DOE cannot set limits or require companies to reflect the actual cost of inventory acquired before global price surges.
“So under the Oil Deregulation Act, ang DOE wala kayong kapasidad mag-set ng limits within which magkano ang presyo ng gasolina? Wala kayong mekanismo para sabihin sila na ang supply na nakuha ninyo ay nakuha ninyo 30 days ago wala pang anino ang gera, hindi pa ninyo alam, bakit ngayon ang presyo ninyo nire-reflect ninyo yung world market price?” he asked.
Abad confirmed, “Legally wala ho, but in fairness to the oil industry (players), they follow that.”
Quimbo, however, stressed that consumers do not feel the supposed adjustments.
“We don’t feel it, we do not feel it,” he said.
In an interview after the hearing, Quimbo underscored the need to amend the Oil Deregulation Law to better protect consumers.
“Ramdan natin eh na papanong ganun, 30 araw dapat hawak nila yung inventory nila. Sabihin na lang natin na meron silang nagamit na inventory ng isang linggo, bakit in less than a week nag-a-adjust na sila sa presyong pang merkado na nagpepresupposde na may giyera? Parang hindi ko maiintindi. So hindi na napoproteksyunan ang mamamayan dyan,” he added.