Neda claims oil firms overcharging by P2.30 a liter

AN official of the National Economic and Development Authority yesterday said fuel products were overpriced by P2.30 a liter, and not P8 a liter as claimed by the agency’s former chief, Ralph Recto.

The admission at a hearing of the House committee on energy yesterday prompted Energy Secretary Angelo Reyes to claim that Recto deliberately bloated the figure for political purposes and to gain media mileage.

“He made those statements to gain public attention, without even finding out the truth. This is very lamentable, especially coming from a member of the Cabinet,” Reyes said.

At the same hearing, Neda division chief Arturo Cebuma said the alleged overprice had come down significantly based on prevailing prices and compared to the time when Recto was still Neda chief.

“Our estimates, based on Aug. 10 to 14, [show] the difference is P2.30 per liter on the prevailing prices of petroleum products,” Cebuma said.

Reyes, who was also at the hearing, started badgering Cebuma in violation of House rules saying only panel members and the chairman may directly question resource speakers.

“When was the computation of P8 made? Before he stepped down or after? You better tell the committee because you are under oath,” Reyes told Cebuma.

Panel chairman and Pampanga Rep. Mikey Arroyo stepped in at this point, and Reyes’ question was not answered.

Panel member Zambales Rep. Milagros Mitos Magsaysay asked Reyes if he would recommend a return to a regulated environment for the oil industry, but the energy secretary could only say that the deregulation law could be reviewed.

“I’d love to do that but I already know the consequences. The Oil Price Stabilization Fund went bankrupt then… It could only stabilize, not control or regulate the prices of petroleum products, he said.

Bayan Muna Rep. Satur Ocampo said a regulated oil industry would better serve the public and urged House leaders to speed up deliberation on two bills that seek to stop oil price increases.

He said the situation showsed that it was a mistake to deregulate the industry.

Deregulation, he added, was a complete failure because it rendered the government helpless against the oil companies. –Christine F. Herrera, Manila Standard Today