Published
By Myrna M. Velasco
After a mix of uproar
and animated expectation on the targeted Circular on fuel price unbundling, the
Department of Energy (DOE) finally dropped the bomb that the itemized cost
components of petroleum products will be “for their eyes” only.
In a briefing
with reporters, DOE Oil Industry Management Bureau (OIMB) Director Rino Abad
declared that the DOE is finally ready to issue a fuel unbundling policy, but
the downside of that is: The information will only be shared between the DOE
and the oil companies.
He forthrightly stated
that the information or data will not be shared to the public, and if the media
people will have queries, they will just be given “general industry trends” but
there would be nothing specific on a particular entity.
In the original policy
proposal, it was stipulated that the oil companies “shall strictly comply with the
submission of the formal notice of price adjustments on a per-liter basis.”
The cost components
required to be itemized are: Free on board (FOB) price of the product; freight;
insurance; ocean loss; exchange rate; port charges; taxes and other charges or
costs such as brokerage fee, bank charge, arrastre charge; wharfage charge;
import processing fee and Customs documentary stamps – but all of that will now
be hidden from public view.
The energy official
said they are “bound by confidentiality agreement” so it will not be easy for
them just disclosing information to the media and the general public, thus, his
advice is just for the public to “trust our (DOE’s) judgment” on the oil
pricing sphere.
“We can just give
information on the whole amount of adjustments, there will be no explanations,
so it’s like telling you: This is your allowance, but there will be no
details,” the energy official stressed.
He added “we can just
give you (referring to the media) general industry figure, that is if we really
want to give information to the public – like the averages of increases throughout
the year, and we can state: This was what happened.”
Abad lamented that this
emerges as the scenario “because the law has also limited our powers, we would
have to be consistent with what the law provides, we cannot also violate the
law.”
Given this recent
pronouncement, however, the energy department is ending up in the receiving end
of criticisms for its lack of transparency and in concurring with the whims of
the oil companies.
Bayan Muna Chairman
Neri Colmenares has in fact pointed out that in the draft Circular of the DOE
on fuel cost unbundling, the oil companies are being required “to hold press
conferences to answer public queries” relating to the price adjustments; with
him adding that “it is absurd to hide the oil companies’ unbundled data from
the public.”
He noted that the
issuance of data to the public is highly critical given the incessant increases
in pump prices and the recent implementation of the second tranche of the
excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
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