Published June 1, 2019, 10:00 PM By Myrna M.
Velasco
The country’s oil companies are
being required to submit regular report to the Department of Energy (DOE) fleshing
out the ‘detailed calculation’ of the price adjustments they have been
enforcing at petroleum pumps.
In the Circular issued by the energy
department May 28 this year, it was expressly prescribed that the oil firms
shall “strictly comply with the submission of the formal notice to the OIMB
(Oil Industry Management Bureau),” and that shall entail turning in report
“containing the detailed computation with corresponding explanation and
supporting documents on the cause/s or reason/s of the movement of the individual
price adjustment.”
It was further directed that “within
two months after the effectivity of this Circular or whenever required by the
DOE or by the DOE-Department of Justice (DOJ) Task Force, oil companies shall
be required to submit a report to the OIMB.”
The pricing components to be fully
explained in the reports’ submission to the DOE had been subdivided into four
major components.
First is international content that
ropes in import cost for crude or finished product; freight cost; insurance; and
foreign exchange rate.
The second cost component delves
with taxes and duties, to include: duties, excise tax, value-added tax (VAT)
and other imposts.
The third fraction of the pump price
costs would be the biofuel blend on gasoline and diesel products; while the
fourth is on the “oil company take components” that also factored in port
charges; refining cost for crude; storage cost, handling cost, marketing cost,
transshipment cost, oil company profit margin and other costs.
The detailed pump price reporting
shall cover per liter and ‘per product basis’ for liquid fuels, as well as
liquefied petroleum gas (LPG) for both the automotive sector and the
commodities used in household cooking.
Energy officials nevertheless
apprised media previously that the required reports from the oil companies will
be confined as “information that will be for the eyes of the DOE and the
relevant industry players only,” hence, those details will not be made public.
The reports, it was further
emphasized, “shall remain as a continuing requirement of the downstream oil
industry and strict compliance to its submission shall be required using the
price as of December 31 of every year thereafter, and shall be submitted to the
OIMB on or before February 28 of the succeeding year.”
On the routine pricing adjustments,
the energy department also directed the oil companies to enforce cost movements
on a uniform day – which is Tuesday at each week.
“For the purpose of effective
monitoring thereby avoiding possible confusion among stakeholders and
consumers, the price adjustment for liquid fuel may preferably be implemented
beginning every Tuesday of the week and applicable for the next seven days; and
for LPG, beginning every first day of the month and applicable for the whole
month,” the DOE has stated.
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