Marikina City 2nd District Representative Miro Quimbo has urged the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) to investigate whether oil companies are colluding in the pricing of petroleum products, which he described as resembling cartel behavior.
Quimbo made the statement after Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan told the Legislative Energy Action and Development (LEAD) Council on Wednesday that regulators must ensure fair competition among oil firms.
“I think the issue is that the oil regulators are not exercising their powers to make sure that market players are being fair in the way they play their game in the market,” Balisacan said.
He added,
“In Econ 101, Mr. Chair, when there are very few players in the markets, and you ask these players, government may be asking them to cooperate, to coordinate, they are actually asking a cartel.”
Quimbo, who chairs the House Committee on Ways and Means, stressed the importance of PCC and ERC fulfilling their mandates, especially as the country faces an oil crisis due to tensions in the Middle East.
“In reality, [government] has sufficient powers in so far as the ERC, in so far as the PCC is concerned, to be able to prevent, determine, investigate, and penalize individuals who are excessively profiteering or dominating their position,” he said.
He further noted,
“Ito ‘yung mga maliliit na bagay na ‘di napapansin ng publiko pero in reality napaka-strong ng potential impact in lowering the price because you are able to prevent a collusion among these players.”
Although the oil industry is deregulated, Quimbo emphasized that the government still has mechanisms to combat anti-competitive practices.