An administration lawmaker chided the newly formed Economic Coordinating Council (ECC) yesterday for rejecting his proposal for the setting up of an oil exchange agency without giving it a careful study.
Bataan Rep. Enrique Garcia told the weekly Friday Forum at the Rembrandt Hotel in Quezon City that the ECC should rethink its decision and allow him to defend his proposal before the council in a formal hearing.
President Estrada initially agreed to endorse Garcia's oil exchange idea, but when the council recommended that it be rejected, the Chief Executive changed his mind.
Under the Bataan congressman's proposal, an oil exchange would be set up and run by a government corporation. It would bid out, on a monthly basis, to world suppliers and local refiners the country's requirements of petroleum products. The process is intended to obtain the lowest possible prices.
In recommending the rejection of Garcia's proposal, council members said it would run counter to the government's deregulation policy and that there's no guarantee that an oil exchange could bring out the lowest possible prices of petroleum products.
Garcia said the oil exchange "is the best and most effective kind of globalization, deregulation, liberalization and privatization."
He said the bidding would not only be limited to local refiners and suppliers but would include world traders of petroleum products.
"This will enable us to get the lowest possible prices for our people and country. How can ECC be opposed to this?" he said.
He stressed that at present, the people are not getting the lowest price because Petron, Caltex and Shell can dictate their prices since they control 95 percent of the market.
Garcia vowed to pursue his proposal, which he said is supported by more than 130 or a majority of his colleagues.
The latest to express support for the oil exchange set up was Rep. Ernesto Herrera (LAMP, Bohol) who shared Garcia's belief that it would result in lower prices.
Garcia said if the House approves his proposal, the President might change his mind about the idea.