3 hours ago
2
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
MANILA, Philippines — Take it from the government’s former anti-trust chief himself.
Contrary to popular belief, the government’s hands are not tied in preventing collusion among key players in the deregulated oil industry as the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) wield the power to go after profiteers and hoarders.
“I think the issue here is that the oil regulators are not exercising their powers to make sure that market players are being fair in the way they play their game in the market,” said Economy, Planning, and Development Secretary Arsenio Balisacan. He chaired the PCC during the Duterte administration.
“In Economics 101, when there are very few players in the markets, and you ask these players, government may be asking them to cooperate, to coordinate, actually they are asking a cartel,” he told members of the House of Representatives at the hearing of the Legislative Energy Action and Development joint committee.
“What we do know is that the industry is a highly concentrated industry. There are only a few players. And so in Economics 101, you know that it’s easier to coordinate when there are only very few big players,” Balisacan, who is also an economics professor in University of the Philippines, said.
“There are opportunities for cartel-like behavior, just like what they have in OPEC (Organization of the Petroleum Exporting Countries),” Balisacan explained.
In reaction, presiding officer Rep. Miro Quimbo of the House ways and means committee called for “stronger enforcement” by the PCC and the ERC especially as the nation is reeling from the effects of the fuel crisis sparked by the US-Israel war on Iran.
“In reality, the government has sufficient powers insofar as the ERC, insofar as the PCC is concerned, to be able to prevent, determine, investigate, and penalize individuals who are excessively profiteering or dominating their position,” the Marikina congressman said.
Quimbo acknowledged that while the oil industry is under a deregulated regime, the “government still has mechanisms to curb anti-competitive practices.”
“These are small things that the public generally ignores, but in reality these have very strong potential impact in lowering the price because you are able to prevent a collusion among these players,” the senior administration lawmaker added.
Unbundling oil prices
In his interpellation at the joint committee hearing, ACT Teachers party-list Rep. Antonio Tinio pressed the Department of Energy to immediately unbundle oil prices and disclose oil companies’ actual profits so the public would know if there’s justification for adjustments in pump prices.
“We cannot address this energy crisis if government refuses to show the public what exactly we are paying for at the pump, Unbundle oil prices now. If there is truly no overpricing, then transparency should be the easiest thing to provide,” Tinio said.
“Our preliminary comparison shows a troubling pattern: the increase in local pump prices has been higher than the increase in world market indicators – even before the US bombed Iran,” he said.
“That raises a serious question: are oil companies padding prices and profits while Filipino commuters and workers pay the bill?” He argued there’s basis for suspicion of overpricing.
Tinio challenged the DOE secretary’s position that there is no overpricing, stressing that such a claim must be backed by verifiable, publicly available data – especially during a declared national energy emergency.
Also yesterday, Bohol Rep. Kristine Alexie Besas Tutor filed House Resolution No. 928 urging immediate government action to mitigate the impact of rising electricity costs on Filipino consumers. Her proposed actions include expedited release of power rebates and refunds, and the consideration of temporary tax and tariff relief.
Meanwhile at the hearing of the committee on ways and means on Wednesday, Budget Secretary Rolando Toledo voiced opposition to Batangas Rep. Leandro Leviste’s proposal for huge cuts in the confidential and intelligence funds and in the maintenance and other operating expenses of government agencies.
“We haven’t (it) studied yet… we have to really clarify that with the implementing agencies,” Toledo said.
