Solon: Gov’t can take over ‘freeze’-defiant oil firms

By Angie M. Rosales

10/31/2009

A lawmaker yesterday said the government can take control of the operations of oil companies that will not comply with Malacañang’s price freeze order, even under the present deregulated industry.

Sen. Edgardo Angara, one of the sponsors of the Renewable Energy Act of 2008, said while he would not label as a veiled threat the pronouncements made by the big oil companies in the country that the freeze order could cause them to stop selling their products, he sees it as tantamount to blackmailing the government.

After they were compelled by Malacanang’s issuance of Executive Order 839 to implement a roll back in their prices early this month, local oil firms warned the government that it can not impose the price freeze for an extended time because it may cause a “shortage” in oil products in the market.

But Angara lauded the move of the government, saying that public interest should always prevail, especially in such times of crisis, such as the present one.

He said he will not hesitate to initiate a move in the Senate for Congress to empower the Executive department to be able to impose its authority over the oil companies that will defy EO 839, which the Palace recently issued to call for a freeze on increases in petroleum products while the country tries to rise up from the present calamities that were brought on by two successive typhoons.

“Public interest overrides the right to profit. In case of a state of calamity, like what we are undergoing, the government can take over the operations of the oil companies...Congress can authorize the Executive department. In case of emergency, the President can issue EOs to this effect but her hands will be strengthened if there’s congressional authorization,” Angara said.

The senator vowed to push for the empowerment of the state to take control of defiant oil firms if the need arises, saying its has to be undertaken for the sake of the public, particularly those who are still reeling from the devastation wrought by typhoons “Ondoy” and “Pepeng.”

“It’s for the public. Almost everyone is hard up nowadays, the entire Luzon,” he noted.

Minority Leader Aquilino Pimentel Jr. and Sen. Francis Pangilinan have assailed the oil companies for issuing what they deem was a veiled threat to the government.

“Their arrogance is truly deplorable. Rather than cooperate and contribute to helping address the suffering of our people, they resort to veiled threats. We should not allow these companies to resort to bully tactics to try and cow government into submission,” Pangilinan said.

Meanwhile, the Department of Energy (DoE) is strictly monitoring the oil firms’ compliance with EO 839.

Energy Secretary Angelo Reyes also yesterday said the DoE and Department of Justice (DoJ) task force, through the Oil Industry Management Bureau (OIMB), were set to conduct inspections and monitoring of the prices of petroleum products in Luzon, specifically gasoline, diesel, kerosene and liquefied petroleum gas (LPG).

The OIMB is also acting to ensure that petroleum retail stations are selling their products at the prevailing prices since last Oct. 15.

Based on guidelines released by the DoE, oil and LPG industry players are mandated to submit to the DoE a daily inventory of the above identified refined petroleum products.

The DoE also required oil firms and LPG companies to submit within 24 hours from the effectivity of the circular, a listing of all their gasoline/LPG retail outlets in Luzon and their actual pump prices of their petroleum products as of Oct. 15, 2009.

On Wednesday, President Arroyo issued EO 839 to stabilize the prices of petroleum products following her declaration of a national state of calamity after various parts of the country were devastated by typhoons Ondoy and Pepeng, particularly Metro Manila and Northern Luzon.

Petron Corp, the country’s leading refiner, had said the imposition of the price freeze will result to an estimated P1.5 billion in losses to the oil firm in the fourth quarter of this year.

Other oil firms threatened not to import crude and just let their remaining reserves be consumed to prevent incurring further losses due to the price freeze.

Acting Justice Secretary and concurrent Solicitor General Agnes Devanadera, however, yesterday said the DoJ is asking the oil companies to submit documents of financial records to prove such a claim.

President Arroyo has also ordered for the oil firms’ financial books to be opened and scrutinized on account of their alleged commission of “predatory pricing” and their “cartelization” of the industry.

With PNA

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