Shell, Seaoil reprimanded for raising prices during typhoon aftermath

Two oil companies – including one of the Philippines’ largest fuel firms – were reprimanded for raising fuel prices after two typhoons damaged the country, including the capital. Pilipinas Shell Petroleum Corp. and Seaoil Philippines Inc. were asked by a justice and energy department joint task force why they should be exempt from criminal charges. Both Pilipinas Shell and Seaoil increased fuel prices a few hours after an October 12 meeting was held between oil companies and the government, Justice Secretary Agnes Devanadera said, citing media reports and complaints reaching her office. All parties attending the meeting agreed to comply with a presidential directive to keep prices at current levels to help the country cope with devastation wreaked by storm Ondoy and typhoon Pepeng. Seaoil president and chief executive officer Francis Glenn Yu disclosed that the company hiked prices but had no intentions of disregarding the presidential directive. Plans to impose higher prices “have been made known to media even before the October 12 consultation," Yu said. In the meantime, Shell said that it never made a commitment not to hike prices, the company’s country manager Edgar Chua said. Pilipinas Shell only promised to keep fuel supplies steady so that prices will not have to rise, Chua added. “We only made two commitments, the continuous supply in the market and that no price adjustments in areas affected by typhoon," he said. During the meeting, Shell withheld information about raising pump prices because its competitors were also present, Chua said, adding that the information was already relayed to Energy Secretary Angelo Reyes. Pilipinas Shell “does not want to telegraph its pricing moves to our competitors," Chua said. But since the two oil firms have already informed other parties of their prices, there was no point in withholding information, Devanadera said. The meeting discussed “gas prices and ensuring a continuous supply of fuel," Devanadera said. “You already gave the information to the media. What is the point in not informing the DOJ-DOE task force?" Yu and Chua later ended up apologizing to the task force. Provinces damaged by Pepeng were La Union, Baguio, Pangasinan, Cagayn Valley, Isabela, Nueva Vizcaya, Nueva Ecija and Abra. - GMANews.TV