Recto insists gasoline overpriced by P8 per liter

Former socioeconomic planning secretary Ralph Recto on Friday reiterated before the Manila Regional Trial Court his claim that oil products were overpriced by as much as P8 per liter. GMA News' Julius Segovia reported over QTV's Balitanghali that the hearing stemmed from the temporary restraining order sought by the Social Justice System Society against the three major oil companies- Petron Corp., Pilipinas Shell, and Chevron Corp.- for their weekly price adjustments last May. The report said this was the first time that Recto attended the hearing to affirm his computation on the alleged overpricing of fuel products. Recto likewise claimed that overpricing in the provinces of Cebu, Negros, Zamboanga, and Davao were higher than the increase in Metro Manila. Recto also expressed misgivings on why oil companies regularly implement price adjustments when they have a 50-day inventory. He also questioned why the companies’ price movements were happening at the same time. The issue has sparked a feud between Recto and Department of Energy Secretary Angelo Reyes. Reyes said he did not know where Recto got the basis for his figures when there was no existing formula to determine pump prices. The Energy chief said that in a deregulated environment, market forces dictate oil prices. During the hearing, Recto said his estimate was based on the Dubai crude prices that were posted on the Energy department’s website. The oil companies snubbed the hearing, prompting Judge Silvino Pampilo, Jr. to issue a show-cause order against the firms. Recto is set to be cross-examined on October 12, the report said. - AIE B. SEE, GMANews.TV