Friday, January 26, 2018

DoE urged to strictly monitor oil companies’ monthly inventories



January 26, 2018

THE SENATE COMMITTEE on energy has called on the Department of Energy (DoE) to strictly monitor the inventories of oil companies and to impose penalties on those submitting late or incorrect information.
Senator Sherwin T. Gatchalian, the committee chairman, said there is a need for stiffer penalties for violators in view of the passage of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law, which is expected to raise the prices of petroleum products.
He said the TRAIN law “was the only time we seriously reviewed the documents being submitted by the oil companies, requiring them to submit additional information on their inventory levels.”
“With or without TRAIN this should be a normal activity for oil companies,” he told reporters on the sidelines of the ceremonial launch of SN Aboitiz Power-Magat, Inc.’s 8.5-megawatt Maris main canal hydroelectric plant in Isabela province.
Mr. Gatchalian said oil companies are duty-bound to submit their monthly inventories, and that the DoE “should be on top in ensuring their compliance.”
The senator said oil companies should be penalized if they do not submit their inventory reports on time or if they give incomplete or inaccurate information about their stock levels.
Republic Act 8479 or the Downstream Oil Industry Deregulation law mandates oil companies maintain a periodic schedule of present and future total inventory of petroleum products in the country.
As such, oil companies are required to submit a monthly report that details their sales and consumption levels, actual and projected importations, and inventory of oil products.
Mr. Gatchalian has urged the DoE to hasten the validation and analysis of the information it received and start investigating whether oil companies and gasoline stations took advantage of the situation through undue profiteering.
He said even if the private entities raised prices using their new supply, they should still be audited by the Energy department to assess whether they unduly increased prices without clear basis, “in which case they will have to face the appropriate penalties and fines.” — Victor V. Saulon

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