Institutionalized transparency in oil price movement pushed in Senate

Philippine News Agency

A recent Supreme Court decision upheld the Court of Appeals’ rulings that affirmed the validity of a Department of Energy (DOE) circular which requires oil companies to unbundle or disclose the details of price adjustments, along with explanations and supporting documents. (File Photo: engin akyurt/Unsplash)

MANILA – Senator Sherwin Gatchalian on Friday urged his colleagues to enact a law that would institutionalize transparency in the movements of petroleum prices ensuring welfare and interests of consumers are protected.

“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 in a news release on Friday.

A recent Supreme Court decision upheld the Court of Appeals’ rulings that affirmed the validity of a Department of Energy (DOE) circular which requires oil companies to unbundle or disclose the details of price adjustments, along with explanations and supporting documents.

“Mas mainam na magbalangkas tayo ng batas upang masigurong tuloy-tuloy na ang pagpapatupad ng naturang polisiya (It is better that we enact a law to ensure continued implementation of the policies),” Gatchalian said.

“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 mercado (Open and honest communication between the government, oil companies, and the public is important to maintain trust and to safeguard the interest of the public, especially when the market prices are fluctuating,” he added.

Gatchalian earlier filed Senate Bill (SB) 2081 seeking to amend Republic Act 8479 otherwise known as the Downstream Oil Industry Deregulation Act by institutionalizing transparency in the industry.

SB 2081 aims to address a legislative gap by providing the DOE with explicit authority to require downstream oil industry participants engaged in the retail of petroleum products to submit 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 USD80 per barrel.

The measure specifically mandates DOE to require 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. (PR)