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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