Senate mulls probe vs oil firms which did not reduce prices

MANILA, Philippines - The chairman of Senate energy committee on Thursday expressed readiness to conduct a hearing on the failure of big oil companies to bring down their prices like small oil players. This came a day after Unioil Petroleum Philippines, Inc. reduced its diesel price by P6 per liter for an equivalent pump price of P34.97 per liter. Gasoline prices was reduced by P4, resulting in a retail price for unleaded fuel at P38.49, premium at P38.99 and regular at P36.21. Unioil last slashed its pump prices by P6 for diesel and P2.50 for gasoline on Oct. 30. Earlier, small retailer Seaoil Philippines, Inc. reduced its diesel price by P2 per liter, and gasoline and kerosene by P1. Seaoil's premium gasoline now retails at P40, unleaded gasoline at P38.50 and diesel at P35.98/liter. This was what apparently prompted Senator Gregorio Honasan, the new chairman of the energy committee, to say that they are considering an investigation into the matter. However, he told reporters that the Senate inquiry will not happen soon. "Yes (we will call for an investigation but) not immediately. We'll consider the availability of the concerned resource persons," Honasan said. Asked when, the senator answered: "We'll schedule it but we cannot say yet the definite date. We are still discussing the 2009 proposed national budget, we have to finish it first." "We hope within the year. We will aim to schedule it before the adjournment," Honasan said. The Senate still has three weeks before the adjournment. The senator said the inquiry will look into the reason why big oil players did not bring down their prices to a much lower level despite the price rollbacks being done by smaller companies. "We also wanted to find out how we will brace ourselves, not only (against) the financial crisis ..." Honasan said. He said he will also subpoena the books of the major oil players, if needed. The senator said the Senate inquiry will not be "confrontational". "First we will ask clarification from the oil companies, find out from them what they have to say on the issue, why they refused to make public records their books. That will reflect whether they are earning too much to the detriment of public interest," Honasan said. He said if the oil companies would not be bothered by their conscience, it is only then that he will use the power of the chamber or issue a subpoena. "We will consider issuing subpoena if it complies with the law. Subpoena, not them, but the records," Honasan said. In a separate interview, Senator Loren Legarda said only political will is needed to force the big oil companies to reduce their prices. "The President of the Republic (Gloria Macapagal Arroyo) has the right to compel the companies… pressure the big oil companies to roll back their prices. The energy secretary (Angelo Reyes) has the right to compel (oil companies) to bring down their prices," Legarda said. The senator said a mere call or a mere directive from the Reyes will do. "We really need the political will of the energy secretary to implement that for the sake of the consumers and the people," Legarda said. - Amita Legaspi, GMANews.TV