A ranking congresswoman wants to impose a civil penalty of up to P10 million against energy-producing companies that implement unreasonable price increases on crude oil and refined petroleum products.

Manila Teachers Party-list Rep. Ma. Nina Francesca Lacson filed for this purpose House Bill (HB) No. 8781. It was read in plenary Monday, May 4 and referred to the House Committee on Energy.

The proposal seeks to establish a mechanism that would trigger civil penalties on unreasonable price increases for crude oil, residual fuel oil, and refined petroleum products.

The prescribed penalty is "not less than five million pesos (P5,000,000.00) but not more than ten million pesos (P10,000,000.00) for each unreasonable price increase", read HB No. 8781.

"The world is experiencing one of the most serious energy disruptions in recent history due to the escalating conflict between Israel and Iran. The war has severely disrupted oil production and shipping routes in the Middle East, particularly in the Strait of Hormuz, a vital passage through which roughly one-fifth of the worid's oil supply normally passes," Lacson wrote in the explanatory note of her bill.

Lacson says that since the Philippines relies heavily on imported petroleum products, such volatility poses serious risks. "Sharp and sudden fuel price increases have immediate consequences for Filipino consumers, including higher ransportation fares, increased food prices, rising electricity costs, and greater inflationary pressure on the national economy," she noted.

"While international market forces influence fuel prices, it remains the responsibility of the State to ensure that price adjustments within the domestic market remain fair, transparent, and consistent with legitimate increases in production and operational costs," said the vice chairperson of the House Committee on Banks and Financial Intermediaries.

"Unreasonable or unjustified price increases during periods of global instability can aggravate the economic burden on consumers and undermine public welfare," Lacson pointed out.

Section 4 of the bill states that, "Not later than three (3) weeks after the date of enactment of this Act, the Secretary of Energy, in coordination with the Secretary of Trade and Industry, shall issue regulations that: (1) Apply to all crude oil, residual fuel oil, and refined petroleum products that are sold and used as energy fuel in the Philippines; (2) Prohibit any unreasonable price increase for such products by an energy-producing company."

The measure defines an "energy-producing company" as a person engaged in: (1) Ownership or control of mineral fuel resources or non-mineral energy resources; (2) Exploration for, or development of, mineral fuel resources; (3) Extraction of mineral fuel or non-mineral energy resources; (4) Refining, milling, or otherwise processing mineral fuel or non-mineral energy resources; (5) Storage of mineral fuel or non-mineral energy resources by any means whatever; or (6) Wholesale or retail distribution of mineral fuels, non-mineral energy resources or electrical energy.

Meanwhile, an "unreasonable price increase" pertains to any price increase that exceeds any concurrent increase in the production or operation cost of the energy-producing company that are directly related to the products being sold, according to the bill.

The Department of Energy (DOE), in coordination with the Department of Trade and Industry (DTI), shall determine at least bi-annually whether any energy-producing company has implemented an unreasonable price increase in violation of regulations issued under Section 4.

The bill also said the DOE and DTI shall establish and implement a weekly monitoring system for the prices of crude oil, fuel oil, and refined petroleum products sold and distributed within the Philippines.