Price spiral triggers call for opening of oil firms' books

BY DENNIS GADIL

SENATE President Manuel Villar yesterday called anew for the opening of books of giant oil companies in the country to check if their latest price increases were justified.

A price hike of 50 centavos was implemented Saturday by the "Big Three" - Pilipinas Shell Petroleum Corp., Chevron Philippines (formerly Caltex) and Petron Corp. - bringing the cost of gasoline to an average of P46.65 per liter, diesel to P35.91 to P40 per liter, and kerosene to P41.30 to P45.80 per liter.

The latest round of 50-centavo increases was the fourth in four consecutive weeks.

World oil prices have reached the record level of $111 a barrel but went down to $100 a barrel in the past days.

Militant transport groups, noting the new pump prices are the highest in the country's history, said they would call for protest actions.

Villar said the energy department is authorized by law to look into the books of oil players to determine the formula used by oil firms in implementing price increases. But he said government seems to have forgotten to do this.

He pushed for the amendment of the oil deregulation law "on that aspect na mabigyan ng mas maraming karapatan ang gobyerno na buksan ang mga libro ng oil companies."

He said the Bureau of Internal Revenue should be brought in if the energy department, which is empowered by law to guard the price-setting activities of oil companies, continues to avoid its duties.

Villar said the amended law should empower the President to order the BIR to look into the financial statements of oil companies.

Villar, an accountant by profession, said oil companies should charge consumers the "net" of increase in cost of oil per barrel in the world as against the current dollar exchange rate.

He said the relatively strong peso should have at least offset the cost incurred by oil firms due to rising world crude prices.

The Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (Piston) pressed for a moratorium on oil price hikes, and scrapping of the 12 percent value-added tax on oil.

George San Mateo, Piston secretary general, said the three major oil firms have in the last 10 years been implementing a "cartelized and manipulative pricing scheme to justify its frequent oil price increases. - With Randy Nobleza