The government has warned that stiff penalties and imprisonment will be meted out against traders and business entities that will be engaging in profiteering and hoarding of petroleum products and other basic commodities as oil prices rise through the roof.

Echoing an earlier injunction from the Department of Energy (DOE), Senate Committee on Energy Chairman Sherwin T. Gatchalian stated that penalties of up to P2.0 million could be enforced against individuals or entities that will be taking advantage of the crisis situation in the oil industry.

The lawmaker has cited Section 15 of Republic Act 7581 or the Price Act as the enabling law that will punish lawless elements and scheming merchants, with that edict prescribing a penalty of imprisonment of not less than five (5) years to 15 years; and a fine of P5,000 to P2.0 million “against those found guilty of manipulation of any basic necessity or prime commodity.”

Gatchalian explained that in the absence of the imposition of a price ceiling on basic necessities amid rising prices of fuel products, the alternative is for the State to exercise “increased vigilance against unscrupulous traders engaged in unwarranted acts that can affect the prices of prime and basic commodities.”

In particular, the solon has prodded the DOE to institute a dedicated hotline number or a communication platform that the public or consumers can easily call or touch base with for the lodgment of their complaints – primarily on retailing of fuel prices going beyond the acceptable price ranges.

Additionally, he urged the energy department to activate its field offices and they must fiercely “investigate and prosecute abusers.” And once found guilty, the licenses of implicated establishments or oil company-retail stations shall be revoked.

With the announcement of the US government on the ban of Russian oil and gas exports into its shores, international benchmark Brent crude climbed again by US$3.0 per barrel as of early Wednesday (March 9) trading - inching up to US$131 per barrel from Tuesday’s US$128 per barrel level.

Dubai crude, which is the benchmark for the Asian oil markets, had also escalated to US$118 per barrel, higher by US$2.0 per barrel versus Tuesday (March 8) trading.

Beyond oil prices at the pumps, Gatchalian has similarly called on the Department of Trade and Industry (DTI) and Department of Agriculture (DA) to aggressively “monitor any illegal acts of price manipulation, hoarding, profiteering and cartel activities.”

He specified that under the Price Act, “price freeze is automatically imposed on prices of basic necessities in an area proclaimed or declared under a state of calamity or state of emergency,” although in the case of the incessantly rising oil prices, there had been no ‘economic emergency’ that had been declared yet by the government.

Gatchalian further opined that “a price ceiling may be imposed on any basic necessity or prime commodity considering the impendency, existence or effects of a calamity, if there is prevalence or widespread acts of illegal price manipulation, and if the prevailing price of any basic necessity or prime commodity has risen to unreasonable levels.”

He stressed “it is illegal to take advantage of the situation when everyone is practically struggling to recoup whatever losses in savings and income they have incurred in the past two years amid the COVID-19 pandemic.”