Senators: Hold abusive oil companies accountable

MANILA, Philippines — The Senate’s probe into the government response to the Middle East crisis is zeroing in on oil companies, with lawmakers seeking to hold firms accountable for possible profiteering as fuel prices surge.

At the ad hoc PROTECT (Proactive Response and Oversight for Timely and Effective Crisis Strategy) hearing, Sen. Sherwin Gatchalian raised concerns that some oil players may be taking advantage of the crisis by selling old fuel stocks at prices reflecting recent global increases.

He said the Philippine Competition Commission must monitor oil companies for possible anti-competitive behavior and abuse.

Gatchalian cited estimates raised during the hearing on Thursday that oil firms could be earning as much as P3 billion daily by selling older inventory at higher prices following the closure of the Strait of Hormuz.

He also rejected the industry’s use of the “replacement cost” pricing mechanism, saying older inventory should be priced based on the original cost.

Oil firms, including Shell, Petron and Chevron, told senators that supply remains tight, with inventory expected to last only until May.

Price freeze urged

Sen. Bam Aquino urged the government to declare a price freeze on basic commodities and essential goods to shield the public from the inflationary impact of rising oil prices.

“We need immediate action, and my suggestion is to implement a price freeze for the many Filipinos who are already struggling. They should do it now,” he said.

Officials earlier confirmed that only price monitoring – not a freeze – is currently in effect. — Jose Rodel Clapano, Louella Desiderio