By Lenie Lectura - June 26, 2019
THE Department of Energy (DOE) said
on Tuesday that government lawyers would handle the petition for temporary
restraining order (TRO) filed by oil firms against the enforcement of the
agency’s fuel price unbundling circular.
“We referred the case to the Office
of the Solicitor General,” Energy Secretary Alfonso Cusi said.
This developed after Pilipinas Shell
Petroleum Corp. filed a separate case against the DOE in a local court.
Shell is a member of the
Philippine Institute of Petroleum Inc. (PIP), which earlier filed a Petition
for Declaratory Relief with Application for a TRO and/or Preliminary Injunction
to question the DOE’s Department Circular DC2019-05-0008.
Aside from Shell, PIP is
composed of Petron Corp., Chevron Philippines Inc., PTT Philippines, Total
Philippines Corp. and Isla LPG Corp.
When sought for comment, Cusi
said, “This is part of the democratic process in the exercise of rights.”
In a statement, Shell “is
questioning the validity of DOE Department Circular DC2019-05-008 and will
exercise all legal remedies to address this issue” to protect its assets,
operations and stakeholders.
In a nutshell, the circular requires
oil firms to submit a detailed price computation of fuels and household
LPG, per liter, per product and on a weekly basis.
“While the DOE’s mandate is to
monitor oil price movements, we believe the Circular leads the industry back to
the path of regulation.
Further, it restricts the timing of
price adjustments and requires the submission of critical unaudited information
that could be prejudicial to the industry players. The Circular is also unclear
and administratively impossible to comply with,” Shell said.
IP’s motion, meanwhile, pointed out
that the DOE circular contravenes the dynamics of a deregulated oil market.
“The relief sought is necessary to
protect the industry and the public, and to foster market-driven competition.
As the DOE Circular becomes effective on June 29, 2019, petitioners are
likewise seeking injunctive relief to stop its implementation until the case is
heard and decided on the merits,” it said.
The DOE clarified that the
unbundling circular takes effect July 2. The agency will pursue the implementation
of the circular unless the courts grant the oil firms’ petition for TRO.
“Ganun na nga po ang mangyayari,
according to legal procedure, habang hindi pa nagdedesisyon ang korte,
itutuloy namin,” Energy Assistant Secretary Robert Uy said. “We belong to a
democratic society. Everybody is entitled to his or her opinion.We welcome
this.”
Another DOE official said the
agency welcomes comments, constructive criticism, and even legal challenges to
the unbundling circular as it provides the DOE with an opportunity to further
learn and strengthen future administrative issuances of the department.
“However, we are quite confident
that the unbundling circular is on firm legal ground considering the express
provisions of the oil deregulation law authorizing the Energy secretary to
require virtually all kinds of information from oil companies,” DOE Assistant
Secretary Leonido Pulido said.
A lawmaker said last week the
government and the private sector “must strike a balance” in order to arrive at
a win-win solution.
“If the government forces them
to disclose all of these then, the oil firms are worried that sensitive
information could be leaked and thus, it would be unfair to investors. But the
government does not want the oil companies taking advantage in times of supply
disruption,” Senate Energy Committee Chairman Sen. Sherwin Gatchalian said.
The committee may review the
Circular further “so the government may not be encroaching too much on the
operation of their business and also not to pry into the proprietary aspect of
the business.”
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