MANILA, Philippines — The so-called ‘independent players’ in the deregulated downstream oil industry will not necessarily follow the ‘voluntary act’ of their counterparts in the proposed review of their books and financial records, but they indicated that they will abide by any mandate from the Department of Energy.

“We are just ready if an independent audit authorized by the DoE will include us,” Independent Philippine Petroleum Companies Association (IPPCA) chairman Fernando L. Martinez has noted.

He stressed though that there will be no need for them to do a “repeat act” of what the Philippine Institute of Petroleum (PIP) has done as far as offering their books for a new round of scrutiny is concerned. The PIP is an organization of the relatively bigger players in the industry – the likes of Petron Corporation, Pilipinas Shell Petroleum Corporation, Chevron Philippines Inc., Total Philippines, PTT and Liquigaz.

“I have repeatedly said that our books of account are always open as we regularly submit to the SEC (Securities and Exchange Commission) and the DoE and even to Congress energy committees when they request for it,” Martinez said.

He further emphasized that “if the oil majors volunteered for a special audit, then it’s their call. It’s a non-issue really.”

At this point, the bigger question is on the composition of the review body that shall be formed by the DoE to examine the books of the oil companies; and if the individuals included in the team would be able to give credence to the outcome of the review.

This is already the third time that the oil firms’ books and financial records will undergo an audit in just a span of six years – the first two rounds were in 2005 and 2008.

Nevertheless, given that the issue of pricing is the most contentious concern being questioned by various groups, no independent local entity may have yet the expertise and competence which could render a critical review on the matter.

It was opined that unless a highly credible international third party – with acclaimed expertise on oil pricing concerns – will be tapped, the outcome of the review will always be questioned and the issue of “overpricing” being hurled against the oil companies can never be put to rest.

The DoE sounded off plans of forming a multi-stakeholder review body, but so far, none of those being hinted are really competent enough to evaluate the contentious issues of pricing. (MMV)