DOE chief defends oil price hikes, hits Recto for grandstanding

The feud between Energy Secretary Angelo Reyes and erstwhile Socioeconomic Planning Secretary Ralph Recto rose to the surface again Tuesday in a congressional hearing on the latest surge in oil pump prices. The absence of Recto — whose resignation took effect last Sunday — from the hearing of the House Committee on Energy did not stop Reyes from making both direct and indirect statements against him. Asked to comment on the alleged P8-per-liter overpricing of gasoline reported by Recto during his stint as National Economic and Development Authority (NEDA) director-general, Reyes said the "difficulty" with the situation was that "some people" were making statements "just to get public attention." "I find this very, very lamentable especially when it comes from a member of the Cabinet," Reyes said, adding that "simple decency and ethics" dictate that Recto should have talked to him before releasing the figure to the media in April. Reyes said he had asked Zenaida Monsada, director of the DOE's Oil Industry Management Bureau, to talk to NEDA officials regarding the alleged overpricing, but they could present no computation because Recto supposedly came up with the P8-per-liter figure himself. According to Reyes, when he asked Recto what his basis was in a meeting between DOE, NEDA, and oil firm representatives, the latter said he didn’t have to explain or show his computation. "Hindi naman tama yun (That's not right)," he said.

NEDA estimate NEDA industry division chief Arturo Cebuma said during the hearing that their gasoline price estimate was based on pump prices and foreign exchange, among others. [See the NEDA's presentation on their estimation of gasoline prices here] But Reyes said there is not even an existing formula to determine pump prices, as market forces dictate oil prices in a deregulated environment. "There is no formula. Anybody who says he can determine the correct price is lying, lying through his teeth. Nagsisinungaling sa publiko para maging popular, para maka-attract ng media attention. ‘Yun lang 'yan (Lying to the public to gain popularity, to attract media attention. That's all there is to it)," he said. Speculations about a feud between the two Cabinet officials flew last week when Recto quit his post, but Recto himself said in media interviews that he wanted to focus on his political plans in 2010. However, he pledged to continue advocating reforms in oil pricing. Recto was replaced by NEDA deputy director-general Augusto Santos. [See: Recto quits NEDA to pursue senatorial bid] Reyes, a former military chief and defense secretary, had earlier accused Recto of using fuel price increases as media mileage for his election bid, while Recto has insisted that Reyes stop grumbling and stay focused on “addressing oil price volatility." [See: Palace downplays its family feud over oil prices] Feeling alluded to While the energy chief took the position of oil companies and distributors, Recto has the support of transport and consumer groups. Groups such as Piston and Pasang Masda bewailed Recto’s resignation as NEDA chief, saying consumers lost an ally in the Arroyo Cabinet. Consumer and Oil Price Watch president Raul Concepcion, who has long criticized the DOE for failing to lower fuel prices, also took offense at Reyes' statement that anybody who claims to know the correct pricing formula was lying. "I'm not lying," said Concepcion, who has also earlier accused the Big Three oil firms — Pilipinas Shell, Chevron, and Petron Corp. — of cartelization. The committee is eyeing the review of the Oil Deregulation Law to help bring down oil prices. Both major and independent oil players, however, have earlier expressed apprehensions over returning to a regulated industry. Reyes also said re-establishing an oil price stabilization fund in a regulated environment would also cost the public as the fund would likely be sourced from taxpayers' money. - GMANews.TV