May 8, 2018 | 10:02 pm
THE Department of Energy (DoE) plans
to require oil companies to report the breakdown of the costs that go into the
pricing of fuel.
“Identification of the costing for
the major components of these petroleum products that may affect the pump
prices would provide a higher level of transparency for our consumers,
particularly the motorists,” Energy Secretary Alfonso G. Cusi said in a
statement on Tuesday.
The DoE hopes to issue by end-June a
new policy that will facilitate the “unbundling” of the base prices of
gasoline, automotive and industrial diesel, kerosene, jet fuel, bunker fuel oil
and household and automotive liquefied petroleum gas.
In preparation for the new policy,
the DoE’s Oil Industry Management Bureau has conducted consultations with
industry stakeholders. Two more focus group discussions are set within the
month to finalize the policy.
Under the proposed policy, the
department will require the oil companies to provide a weekly notice of the
price adjustments plus the computation of their products’ cost components based
on the elements involved in international prices, the cost of biofuels and the
capital and operational cost recovery.
“The weekly oil pricing updates will
also be announced publicly by the oil companies to guide the consumers in
making informed decisions in the management of their fuel oil requirements,”
Mr. Cusi said.
Separately, the DoE said important
energy projects are expected to move faster after the issuance of the
Implementing Rules and Regulations (IRR) of Executive Order (EO) No. 30, the
law that streamlines the regulatory procedures affecting energy projects of
national importance.
“With the IRR in place, the
stakeholders can now expect the prompt delivery of basic energy services to our
people with the realization of vital energy infrastructures, while providing
additional economic investments for us to truly compete globally,” Mr. Cusi
said.
EO 30 was signed by the President in
June 2017. Its IRR “marks the end of slow-moving energy projects that are
impeding the economic development in the country because thay are hampered to a
large extent by the rigid regulatory processes,” the DoE said.
The DoE issued the IRR on April 25.
It takes effect immediately after its publication on May 4, 2018.
Under the IRR, the processing of
permits and licenses should be within a maximum period of 30 days for projects
declared as Energy Projects of National Significance (EPNS). The IRR outlines
the scope of EPNS and the general framework for the processing of the EPNS
applications.
The 30-day deadline starts from the
submission of the complete documentary requirements to the relevant agencies
involved in the permitting process. — Victor V. Saulon
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