By Benjamin B. Pulta
10/15/2009
Prosecutors have been ordered to investigate the possible criminal liability of officials of two oil companies for allegedly raising the prices of their fuel products following the devastation by tropical storm “Ondoy” and typhoon “Pepeng.”
Justice Secretary Agnes Devanadera yesterday said the joint Department of Justice (DoJ)-Department of Energy (DoE) task force reconvened and issued subpoena on the financial records of Pilipinas Shell and Seaoil.
Citing media reports about complaints of consumers about increased costs of these two companies’ oil products, Devanadera said Shell and Seaoil hiked their prices just a few hours after the meeting among DoJ-DoE task force officials and all oil industry players on Monday.
The investigation to be conducted by the task force will determine whether these oil firms can be prosecuted for violation of the Oil Deregulation Act, particularly on predatory pricing, cartelization and unreasonable pricing.
“It’s a great source of disappointment. We were just talking that… we must join together and respond to the situation that has affected our citizens. As we were speaking of keeping prices reasonable and at their present level, we found out that evening that Shell and Seaoil increased their prices,” she said.
Devanadera added the task force can motu propio (by itself) initiate the investigation and the opening of books of oil companies.
She explained the consultation meeting was supposedly just to secure a commitment from the industry of continuous oil supply in the market and to keep current prices at reasonable levels, in line with President Arroyo’s directive to keep major commodities from shooting up due to the calamity.
The DoJ chief admitted that though it is an additional cost when the oil companies transport to typhoon-affected areas, this was not presented by the oil firms during the consultation.
In fact, she said, the oil industry leaders even gave assurance that any extra cost that may be incurred because of the calamity would be absorbed by the companies so that there will be no need for consumers to shoulder it.
“That’s why we were so surprised when the evening news came out, and they (Shell and Seaoil) were not candid enough to say that, ‘right now, as we are speaking about it, we will raise price.’ There was nothing of the sort during the consultation,” she said.
“But it seems that consultations alone cannot give ample protection to the people, so we move on,” Devanadera added.
The DoJ chief pointed out there is still a pending complaint before the task force filed by Cebu Gov. Gwendolyn Garcia, together with leaders of various business groups, against the country’s three major oil firms for imposing higher oil prices in the province compared to that of Metro Manila and other areas in Visayas and Mindanao.
“We still need a lot of evidence (in that case), and with the consultation, the companies (said) they were keeping prices at present level, although they were telling us about market forces, that we all know. But with that kind of representation, we are considering moving to the next higher action, which is investigation.
Source: http://www.tribune.net.ph/metro/20091015met1.html
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