Sunday, May 1, 2011

DOE, DOJ have enough powers to thwart oil pricing abuses

NEWS RELEASE
Rep. Elpidio F. Barzaga Jr. (Lone district of Dasmariñas City, Cavite)

Suite 402 RVMB, House of Representatives Tel. 951-8881


May 1, 2011

DOE, DOJ have enough powers to thwart oil pricing abuses, says solon
The Department of Energy (DOE) and the Department of Justice (DOJ) have ample powers to suppress possible pricing abuses by oil industry players, Dasmariñas City Rep. Elpidio Barzaga Jr. said.

“The Downstream Oil Industry Deregulation Law of 1998, or Republic Act 8479 did not render the DOE and the DOJ toothless in protecting consumers against any excessive and unwarranted increases in the prices of petroleum products,” Barzaga said.

He said the DOE-DOJ Task Force under the law was installed precisely to enable regulators to rein in potential price gouging and other unfair trade practices by the oil firms.

“In fact, we have an entire chapter in the law devoted to anti-trust safeguards, prohibited acts, and remedies. We also have another chapter granting the Secretary of Energy additional surveillance and enforcement powers to ensure a competitive free market and fair pricing,” Barzaga said.

In particular, Barzaga cited Section 14 (d) of the law, which mandates the DOE-DOJ Task Force to investigate on its own, even without any complaint, any unreasonable rise in the prices of petroleum products and/or file the necessary legal action with the proper court or agency.

He said that under the law, the DOE-DOJ Task Force is also duty-bound to act within 30 days on any report from any person of an unreasonable rise in pump prices.

He likewise cited Section 15 (b), which empowers the Secretary of Energy to order any person and require the latter to file reports or respond to specific questions, under oath, on any matter the Secretary may want regarding the oil industry.

Barzaga made the statement shortly after Speaker Feliciano Belmonte Jr. categorically rejected calls for the repeal of the Downstream Oil Industry Deregulation Law.

“We went through a long process of finally deregulating the industry, and that was the right move. Scrapping it or changing it from deregulation to regulation is something that requires a lot of talks. I am not in favor of it,” Belmonte said.

“The sound fundamentals (of a deregulated environment) are still there, and it just so happened that you have all these things happening in oil producing countries,” he said.

Belmonte attributed the recent surge in pump prices to the lingering political turmoil in oil-producing nations.

“We had something like this in the past, and they were not permanent situations,” he added.

Barzaga, meanwhile, welcomed Malacañang’s plan to increase to more than P1 billion the money earmarked for fuel subsidies to the transport sector.

“The direct subsidies will be helpful to public transport and other vulnerable sectors,” Barzaga said.

The Palace said the incremental funding would cover the assistance to fishermen and farmers and the possible extension of the subsidy period to more than a month.

President Benigno Aquino III previously ordered the release of P450 million for a month-long fuel discount to the 214,569 jeepney drivers nationwide.
The subsidy is meant to keep transport costs down amid the surge in the prices of gasoline, diesel and other petroleum products.

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