Senator Win Gatchalian wants to institutionalize transparency in the movements of petroleum prices by enacting a law to ensure that the welfare and interests of consumers are amply 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.
A recent Supreme Court decision upheld the Court of Appeals’ rulings that affirmed the validity of a circular issued by the Department of Energy (DOE). The circular 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,” said Gatchalian.
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,” he added.
It can be recalled that Gatchalian filed Senate Bill 2081 which seeks to amend Republic Act 8479 otherwise known as the Downstream Oil Industry Deregulation Act by institutionalizing transparency in the industry. The proposed measure 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 3 consecutive months is equal or greater than $80/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.
