THE National Economic and Development Authority (NEDA) said it will push for amendments to the decade-old Downstream Oil Industry Deregulation Act of 1998 to shield consumers from “expensive” fuel prices. Socioeconomic Planning Secretary and NEDA Director General Ralph Recto said there is a need to revisit the law to strengthen the Department of Energy’s (DOE) hand on price setting.
The law removed government’s control over the pricing of retail fuel products, giving oil firms a free hand to dictate prices at the pump.
“DOE is saying that they don’t have teeth to do it [reduce prices or to see if there are overpricing or not]. So, should we give them teeth to do it?” Recto said, adding transparency in oil pricing is important.
Recto, who also owned shares in Petron Corp., said he is all for oil companies making money, but government has “to strike this balance to ensure as well that consumers are protected. That’s how we should look at it when we review the law.”
The NEDA chief also stood by his computations showing that local pump prices were overpriced by P8.
“Our methodology has never changed. The same methodology we used last year. Remember, all our data comes from the DOE and if that data [were] irrelevant, why are they monitoring that data,” Recto said, adding “The ball now is in the court of DOE and oil companies as well.”
He said that if oil companies do not subscribe to the term “overpriced,” then “I can use the term ‘it appears to be expensive’ based on the global prices.”
As of May 5, prices of unleaded gasoline ranged from P29 to P37 per liter, diesel at P22 to P29, and kerosene at P31 to P35.
On Wednesday, Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines and Total Philippines announced a P1.50 per liter increase in the prices of their gasoline products, and 50 centavos for both diesel and kerosene.
Earlier, non-government Ibon Foundation said oil firms are taking advantage of volatile oil prices to “pad their prices,” adding the companies “are not lowering pump prices in line with global oil price and foreign exchange rate movements.”
The research group said industry players have long been using the law as a cover for their “super profits,” adding the Supreme Court should review its recent decision upholding the constitutionality of the deregulation law.
Ibon’s own computation showed that diesel and regular gasoline pump prices should be P4.20 lower per liter.–Darwin G. Amojelar, Senior Reporter, Manila Times
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