Business leader files cartel raps vs LPGMA execs

The head of the Federation of Philippine Industries filed before the Department of Justice a complaint accusing members of the Liquefied Petroleum Gas Marketers Association, Inc. (LPGMA, Inc.) of monopolizing the LPG trade. In a 15-page complaint affidavit, FPI chair Jesus Arranza accused at least nine LPGMA members of violating provisions under the Oil Deregulation Law and the Revised Penal Code that prohibit cartelization among oil firms. Cartelization is the concerted action of producers of any product to control the production, sale or pricing of the product, while restricting competition, for their common benefit. "LPGMA, Inc. has itself declared that it controls 30 percent of the LPG market for Luzon. As such, trade and free competition has indubitably been restrained by respondents' agreement and/or concerted action," said Arranza. "On the basis of respondents' very own evidence, in view of their agreement and/or combination and/or concerted action in fixing the price of LPG in the market, there cannot be any doubt as to their criminal liability for cartelization under Section 11(a) of Republic Act No. 8479, and for violation of Article 186 of the Revised Penal Code. The appropriate criminal informations should be thus filed against them in the proper court/s," he added. Named respondents in the complaint are: LPGMA president Arnel Ty and members Danilo Chua, Alison Sy, Rene Rosell, Ronnie Sevillana, Mar Dave Tang, Virginia J. Cid, Bonifacio Eleria, and Antonio del Rosario, and still unnamed John Does and Jane Does. The respondents are owners, directors, or proprietors of LPG firms belonging to LPGMA. Ty's defense Ty, however, denied Arranza's allegations and said lowering LPG prices should not be punishable. "Mr. Aranza is filing cartelization charges against me because I announced a rollback of LPG prices. I'm willing to be jailed if providing affordable or lower LPG prices for Filipinos is a crime," the LPGMA president said in a text message to GMANews.TV.—Sophia M. Dedace/JV, GMANews.TV