THE ENERGY department is set to nominate members of a committee that will look into a possible review of the oil deregulation law and inspect the financial books of oil companies, an Energy official said.
The department has already sent a letter to the Philippine Institute of Petroleum (PIP) which earlier said any review on the law should have a multi-sectoral panel.
“I’ve given my suggestion on who the members of that [review] committee should be. I nominated an economist, a business representative, consumer representative, a transport group leader, the Dean of UP [the University of the Philippines] School of Economics,” said Energy Secretary Jose Rene D. Almendras in an interview with reporters.
He added journalists have also been recommended to be a part of the review panel and will include “one from print, broadcast and television.”
Member oil firms of PIP earlier said any review of the oil deregulation law should have well-defined objectives and “the review team should be composed of legitimate representatives to the affected sectors and should be competent and well-respected in their respective fields.”
The oil companies also committed to opening their financial records for the public’s perusal.
Groups, particularly in the transport sector have been vocal in the clamor to repeal the oil deregulation law amid the high prices of fuel products.
The Energy department along with the departments of Justice and Transportation and Communications were tasked by President Benigno S. C. Aquino III to review the oil deregulation law to see if it should be amended.
Mr. Almendras said “once we agree on the representatives then we will ask for formal nominations.”
Oil prices have increased 30 times compared to 17 price rollbacks since the start of the year.
Gasoline prices have increased by P6.30/liter since January while diesel prices have risen by P8.20/liter.
Prices of Dubai crude are at around $105 per barrel.
Data for Mean of Platts Singapore, the benchmark used for finished products imported to the country, is not immediately available. Dubai crude is the price benchmark used by the country’s oil industry.
Data from the Energy department placed average prices of unleaded gasoline at P55.55/liter with its prices ranging from P50.30/liter to P57.62/liter
Diesel prices range from P39.60/liter to P42.95/liter with an average price P42.65/liter.
Last September, Mr. Aquino ordered a review of the oil deregulation law following a meeting with transport group leaders. In particular, the President wants a review on the law to allow the entry of more oil industry players to enhance competition in order to benefit consumers.
The oil deregulation law, or Republic Act 8479, was enacted in 1997 during the administration of former President Fidel V. Ramos.
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By: Emilia Narni J. David
Source: Business World, November 3, 2011
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