Manila court asked to stop oil price hikes

MANILA, Philippines - A Manila court was asked yesterday to stop the country’s three largest oil firms from increasing pump prices.

The Social Justice Society (SJS) told Judge Silvino Pampilo Jr. of Manila Regional Trial Court Branch 26 that Pilipinas Shell Petroleum Corp., Chevron Philippines Inc. (formerly Caltex) and Petron Corp. must justify the “almost weekly” increase in pump prices.

The SJS asked for a temporary restraining order and a writ of preliminary injunction “restraining respondents from further increasing the pump prices of their petroleum products almost on a weekly basis in the absence of sufficient justification for them to do so.”

SJS lawyer Vladimir Cabigao said they have received reports that Shell, Chevron and Petron and the other players of the downstream oil industry would increase their prices anew this week in the wake of a shift in crude oil prices in the world market.

“This act of respondents and the other players of the downstream oil industry is becoming habitual and unrestrained almost every week and the public could not remonstrate their indignation with efficacy,” he said.

Cabigao said during a hearing at the House of Representatives, a representative of one of the “Big Three” oil firms admitted that they maintain at least one month stock of inventory and move their prices almost weekly.

“Thus, respondents’ claim that they had to shift their prices weekly on account of the movement of crude oil prices in the world market is dubious, if not deceitful,” he said.

“It is noteworthy that the actions of oil companies in shifting the pump prices of their petroleum products bring impact on prices of transportation, food and other commodities and, if not properly guarded, could either bring misery or prosperity to the life of ordinary people.”

Cabigao said under the Oil Deregulation Act of 1998, the Department of Energy (DOE) is required to maintain a periodic schedule of present and future inventory of petroleum products to determine the level of supply.

“To implement this, Section 8 of DOE Circular No. 2003-01-001 provides that “all oil companies submit to the Bureau (DOE’s Oil Industry Management Bureau) weekly reports, prepared under oath, of their inventory on a per crude and per product basis including their actual and projected importations and local purchases,” he said.

Cabigao said the National Economic Development Authority (NEDA), the government’s policy-making body on economic affairs, is disputing the pricing of petroleum products of the three oil firms.

“Therefore even the government itself is not convinced about the propriety of the pump prices of petroleum products of respondents. Until withdrawn by NEDA or intelligently refuted by respondents, the said study is the official stand of the government on this issue and should serve as one of the grounds for issuance of a writ of preliminary injunction and/or temporary restraining order,” he said.

Cabigao said they also asked the court to exempt them from paying a bond “considering that petitioners are doing this not for profit but for the service of others who are similarly situated with the rest of the multitude ordinary Filipinos.”

The court has the power to exempt payment of the bond pursuant to Rules of Court, Cabigao said.