Explain 'surpise' price hikes, oil firms told

MANILA, Philippines – Malacañang and Energy Secretary Angelo Reyes on Wednesday demanded an explanation from the oil firms that implemented "surprise" oil price hikes on Tuesday. The demand came a day after a number of oil firms – including “Big Three" Chevron Philippines Inc, Pilipinas Shell, and Petron Corp – hiked their gasoline prices by P1 per liter and diesel and kerosene prices by 50 centavos per liter. Press Secretary Cerge Remonde said the Palace would be forced to order the Department of Energy to step into the matter if the oil firms would fail to offer an explanation for the price adjustments. Promptly, Reyes said he would be acting on the sudden price adjustments, adding that he would be gathering oil firm officials over the weekend to have them explain the hikes. The Oil Deregulation Law requires oil firms to inform the Department of Energy before implementing any adjustment on the prices of their pump fuels, Reyes explained during a radio interview Wednesday. The Energy department also requires oil firms to announce any oil price changes at least one day before implementation. A radio report quoted Shell vice president for communications Roberto Kanapi as saying they make it a point to announced ahead any price adjustments. On Tuesday morning however, Pilipinas Shell and Chevron Philippines Inc hiked their oil prices at 12:01 a.m. but only made the announcement hours later. Petron implemented the same price changes at 6 a.m., but the announcement also came in later in the day. Tuesday’s latest price hikes might not be the last for the week as earlier reports said oil firms are most likely to further increase their prices in the coming weekend. But Kanapi belied the reports, saying Shell would not be making another price hike for the remaining days of the week. He, however, admitted that Shell still has to recover the losses it incurred after prices of diesel and gasoline in the international market surged up by $3 and $5, respectively. Open the books The Social Justice System (SJS) condemned not only the “surprise" oil price hikes on Tuesday but was well as the possible oil price hikes in the coming weekend. The SJS asked Judge Silvino Pampilo Jr of the Manila Regional Trial Court Branch 26 to resolve its petition seeking to open the books of the “Big Three" oil firms. Pampilo is still hearing the case filed by the SJS in 2005 that accused Chevron, Shell, and Petron of oil cartelization and predatory pricing, a violation of the Section 11 of the Oil Deregulation Law. A joint team from the Justice and Energy departments earlier investigated the claim and said it did not find any violation of the deregulation law. Blasting the joint team report, the SJS recently asked Pampilo to order the forming of a team composed of representatives from the Bureaus of Customs and Internal Revenues, and the Commission on Audit that would conduct a separate audit on the “Big Three." - GMANews.TV