MANILA, Philippines - The Liquefied Petroleum Gas Marketers’ Association (LPGMA) complained of harassment by the so-called “Big 3” oil companies after the Federation of Philippine Industries (FPI) pushed for the filing of alleged “cartelization” charges against Arnel Ty, the representative of the party-list group in Congress.
“The FPI is just a front of Pilipinas Shell Petroleum Corp., Petron Corp., and Chevron Philippines Inc. in damaging the reputation of LPGMA and other independent refillers not aligned with the giants,” said lawyer Miguel Ponce Jr., chief of staff of congressman Ty at the House of Representatives.
“The Big 3 oil firms are among the controlling corporate members of FPI. The giants are simply out to stifle free and fair competition, and perpetuate their market dominance at the expense of consumers,” Ponce said.
Acting on a complaint filed by FPI, a prosecutor from the Department of Justice has reportedly recommended the filing of “cartelization” charges against Ty and nine other individuals.
“The complaint against Rep. Ty is totally baseless. It is merely being played up by FPI to deflect attention away from the public clamor for the Big 3 to open their books for scrutiny, amid widespread allegations of overpricing,” Ponce said.
“We don’t have a copy yet of the prosecutor’s supposed recommendation. If in fact there is one, then we intend to appeal it before the Secretary of Justice,” he said.
FPI’s complaint stemmed from Ty’s previous announcement of his firm’s LPG price cuts. FPI claimed that the broadcasts, which are also being done by the three oil firms every time they slashed prices, constituted “price signaling.”
Curiously, Ponce said FPI’s complaint singled out LPGMA.
Independent LPG refillers compete directly with the Big 3 in the open market.
“Independent refillers base their product retail prices on the international contract price of LPG. This is why they are able to sell their products to consumers at much lower prices compared to the Big 3,” he said.