In a closed-door general membership meeting recently, the Philippine Institute of Petroleum, Inc. (PIP) informed newly-appointed Energy Secretary Vincent Perez of the prevailing issues in the industry, particularly the requirements of the Clean Air Act, supply security, how oil deregulation should work, and the controversial proposal for a National Oil Exchange (NOEC).
The PIP members briefed Perez about their sentiments on these issues, specially the compliance to the CAA and the Oil Exchange.
Perez, for his part, promised to look into these concerns. He still has to come up with a position on the proposal to defer the CAA implementation and the creation of the NOEC.
Perez said he wants to keep an open mind on the NOEC issue. But industry sources said the government should act immediately on these issues since these affect the outlook of possible international investors on the local oil industry.
The oil firms warned that the creation of an oil exchange, which will be controlled by the government, will send a wrong signal to foreign investors as this will run counter to the government’s thrust of deregulation.
At present, the energy chief is busy in establishing relations with his counterparts, particularly in the Asian region.
Perez left for Brunei recently for an ASEAN Ministers of Energy Meeting to explore the possibility of pushing for the Trans-ASEAN gas pipeline in preparation of the first flow of natural gas in Malampaya project in Palawan.
He was also able to talk with some Organization of Petroleum Exporting Countries (OPEC) officials to get the feel of the international crude market that affects the local oil industry.
Just like former Energy Secretary Jose Isidro Camacho, the oil companies had hoped the present administration would not intervene in pricing schemes.
"It should be government’s policy to keep its hands off oil pricing to allow deregulation to work," an oil company officials said.
Earlier, Perez urged oil companies to adopt "small and frequent" price adjustments to cushion the impact of those on the consuming public. The local players readily headed by Perez’s call.
As a matter of courtesy, the oil firms have also asked to inform the DOE of plans to increase or decrease prices a day before implementations.