Danessa Rivera (The Philippine
Star) - June 29, 2019 - 12:00am
MANILA, Philippines — More oil firms
are asking the Department of Energy (DOE) to set aside its oil unbundling
policy even as the agency pushed back the implementation to the middle of July.
The oil unbundling policy will take
effect on July 13, two weeks later than the original plan, DOE Assistant
Secretary Leonido Pulido said in a text message yesterday.
“It would be delayed as an annex of
the circular was not published, so our legal services decided to have it
re-published in its entirety in compliance with the legal requirement of
complete publication and in order to avoid any possible confusion on the
effectivity,” he said.
However, the Independent Philippine
Petroleum Companies Association (IPPCA) asked DOE Secretary Alfonso Cusi to
suspend and eventually withdraw the circular that details the oil unbundling
policy.
“After going over its provisions, we
are of the view that its implementation would greatly affect the viability of
our business and run counter to the provisions of Republic Act 8479 or the
Downstream Oil Industry Deregulation Act of 1998,” the group said.
In its position paper, IPPCA said
the circular is an illegal act since it compelled industry participants to
unbundle the price of their petroleum products.
The group argued that the power to
pass or amend laws could only be done by Congress.
Under the Downstream Oil Industry
Deregulation Act of 1998, the DOE was authorized to monitor both the
international and domestic price movements of petroleum products, as well as
the compliance of businesses with national standards.
The circular, signed by Cusi late
last month, requires all oil companies to report their “unbundled price
adjustments,” including import costs, tax burdens, biofuel costs, oil company
take components, and other essential cost components that contribute to the
changes in retail prices.
“In our view, this imposition by the
DOE is not authorized by RA 8479 because, after the deregulation of the
industry, the DOE is only allowed to conduct limited monitoring of the
activities of oil industry players,” IPPCA said.
IPPCA further said compelling the
industry players to unbundle the prices of petroleum would indirectly regulate
their activities.
“The unbundling of their prices will
effectively result in their regulation by the DOE contrary to the very concept
of deregulation. It will eliminate competition because any difference in the
price or components thereof between and among the industry participants will
not only be revealed but may be used easily as instruments of unfounded
investigation and harassment,” it said.
The circular also singles out oil
industry players from the equal protection clause of the Constitution, which is
against undue favor and individual or class privilege, as well as hostile
discrimination or the oppression of inequality.
“This is effective price regulation
and control without authority of law. While a law has been passed deregulating
the downstream oil industry, the DOE continues to single out the industry
players and unduly prevent them from engaging in fair competition by
continuously interfering in the determination of the price of their products,”
IPPCA said.
Earlier this week, major oil players
Pilipinas Shell Petroleum Corp. (PSPC), Petron Corp., and the Philippine
Institute of Petroleum Inc. (PIP) separately asked courts stop the DOE’s oil
unbundling policy.
PIP is an independent body of oil
companies and its members include Chevron Philippines Inc., Isla LPG Corp.,
Petron Corp., PSPC, PTT Philippines Corp., and Total Philippines Corp.
The filings made by oil companies
are part of the democratic process and are respected by the DOE, Cusi said.
However, he said the agency had
already referred the cases to the Office of the Solicitor General (OSG) as
their legal counsel.
No comments:
Post a Comment