By Danessa Rivera (The
Philippine Star) | Updated September 30, 2016 - 12:00am
MANILA, Philippines - The Department
of Energy (DOE) has ordered Mindanao oil players to explain the unusual price
reductions in gasoline products which is considered as anti-competitive
behavior under the law.
Based on the monitoring of the DOE-Mindanao
Field Office (MFO), the oil companies from Aug. 30 to Sept. 6 cut prices a
sizable P3 per liter on the average.
Elsewhere in the country, oil
companies raised gasoline prices by 50 centavos per liter during the period,
reflecting the uptrend in the global market amid positive signals over a
production freeze among major oil producers.
While price rollbacks are a welcome
development for the consumers, the DOE cautioned that sudden and sustained huge
decreases in oil prices might qualify as an anti-competitive behavior under the
Oil Deregulation Law.
“This market behavior puts both the
smaller oil players and the consumers at a disadvantageous position in the long
run. Smaller oil players may actually lose its market share and end up closing,
allowing the remaining oil players the chance to dictate prices to the
detriment of the consuming public,” the DOE said.
This market behavior could also
spark more peddling of petroleum products through the “bote-bote” scheme and
the alleged smuggling of oil products from nearby countries.
The DOE said its Mindanao office has
been coordinating with local government units (LGUs) and the Bureau of Fire
Protection to eliminate the “bote-bote” scheme while also discouraging
consumers from patronizing such activity as this may endanger public safety and
health.
Peddling of liquid fuels in any
container is strictly prohibited, as stipulated under Department Circular
DC2003-11-010 also known as the Retail Rules. Improper handling of liquid fuels
may lead to accidental fire, illnesses due to inhalation of hazardous fumes and
undesirable effects to the environment.
The DOE is also in talks with the
Bureau of Customs on the alleged smuggling of oil products “as this may hurt
not only the oil industry players, but also the economy of LGUs in Mindanao and
the rest of the country.”
“Taxes are lost, affecting the
delivery of basic services to our people,” it said.
The agency is closely coordinating
with the Department of Justice for the possible convening of the DOE-DOJ Task
Force to determine any violations of the law.
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