It is high time for Congress to pass a law institutionalizing transparency in the movements of petroleum prices to ensure the protection of rights and welfare of consumers.
Sen. Sherwin Gatchalian made the call following the recent decision of the Supreme Court upholding the Court of Appeals’ rulings that affirmed the validity of a circular issued by the Department of Energy (DOE).
The DOE circular requires oil companies to unbundle or disclose the details of price adjustments, along with explanations and supporting documents.
“To guarantee transparency and fair retail pricing, information related to any significant adjustments in oil prices should be made available to the public,” Gatchalian said.
“Mas mainam na magbalangkas tayo ng batas upang masigurong tuloy-tuloy na ang pagpapatupad ng naturang polisiya (It is better that we draft a law to ensure the continuous implementation of such a policy),” the senator pointed out.
“Mahalaga ang bukas at tapat na komunikasyon sa pagitan ng pamahalaan, mga kompanya ng langis, at ng publiko upang mapanatili ang tiwala at mapangalagaan ang interes ng mamamayan, lalo na sa panahong pabago-bago ang presyo sa merkado (Open and honest communication between the government, oil companies, and the public is important to maintain trust and safeguard the interests of the people, especially during a time when market prices are fluctuating),” the chairman of the Senate Ways and Means Committee added.
Gatchalian earlier filed Senate Bill No. 2081 which seeks to amend Republic Act No. 8479, otherwise known as the Downstream Oil Industry Deregulation Act, by institutionalizing transparency in the industry.
The bill aims to grant the DOE explicit authority to require downstream oil industry participants engaged in the retail of petroleum products to submit to the agency information on the cost components of the pump prices when the average price of Dubai crude oil for three consecutive months is equal or greater than $80/barrel.
SBN 2081 also mandates DOE to require these oil companies to comply on disclosure of actual costs including international content such as import costs, freight costs, insurance, and foreign exchange costs; government impositions such as import duties, excise taxes, value added taxes; biofuel costs and other costs such as port charges, refining costs, storage cost, handling costs, marketing costs, transshipment costs, and the oil company’s profit.