Friday, January 19, 2018

DOE admits lack of consumer protection against oil price hike abuses



Published January 18, 2018, 10:01 PM By Myrna M. Velasco

The Department of Energy (DOE) has been floored when concerned officials indirectly admitted in a Senate hearing that the Filipino consumers are ‘not categorically protected yet’ from abuses or profiteering acts from recent oil price hikes as they have yet to validate and analyze the documents submitted to them by the oil companies.
When quizzed by Senate Committee on Energy Chairman Sherwin T. Gatchalian if the department has established mechanism to prevent profiteering and abuses vis-a-vis the cost adjustments enforced at the petroleum pumps, DOE officials were not able to provide conclusive response.
“We are trying to avoid abuse and profiteering, but how can you avoid that if you’re not ahead of the curve,” had been the senator’s point-blank query to the DOE.
Energy Assistant Secretary Leonido J. Pulido III responded that the department just required two sets of document submissions from the oil companies – one had been on their level or volume of inventories; and two, on product withdrawals.
But when asked by Gatchalian if they have done at least an analysis of the documents as a way to confirm if the price hikes implemented had been prudent and warranted, Pulido noted that they are not done validating the industry players’ submissions yet.
The energy official just assured the Senate energy committee that they will “finish their analysis by the end of the month,” the timeframe when 90-percent of the oil companies’ retail stations would have hiked prices already relative to the enforcement of excise taxes under the Tax Reform for Acceleration and Inclusion Act.
“We’re trying to get it from the DOE if we have mechanism to prevent profiteering, but from what I am hearing right now, it seems we don’t have a mechanism… and if there is any, it’s not timely,” Gatchalian stressed.
The senator added “what I am hearing is: you have information gathering, but there’s no analysis. So how can we assure the public that (industry players) will not take advantage of this ‘extraordinary event’, if you don’t have a mechanism?”
The lawmaker similarly asked that in an event an oil company would eventually be proven to have raised prices not in accordance with the TRAIN Law’s implementation parameters, “can the consumers get a refund?”
Pulido said “that (refund) is a novel idea,” asserting further that “it is difficult, but it can be done.”
But if the end, the department will establish violations or offenses committed by the oil industry players relative to the TRAIN taxes’ enforcement, their licenses could be suspended or revoked, according to Pulido.
Energy officials qualified that payments of excise taxes by the oil companies are done two-pronged: for the importers of finished products, it shall be settled with the Bureau of Customs; and for the refiners like Petron Corporation and Pilipinas Shell Petroleum Corporation, it shall be done with the Bureau of Internal Revenue (BIR) upon withdrawal of products.
As of January 18, the DOE reported that only four companies have hiked prices yet owing to the TRAIN Act – namely Petron, Shell, Chevron Philippines that carries the Caltex brand; and Flying V.
Increases are anticipated to already reach 90-percent of all retail stations nationwide by the end of the month.
As affirmed by the DOE, the TRAIN-induced increases will amount to: P2.97 per liter for gasoline (inclusive of value added tax charges); P2.80 per liter for diesel; P3.36 per liter for kerosene; and P1.12 per kilo for liquefied petroleum gas.

No comments:

Post a Comment