DOE Assures Vigilant Oversight of Oil Companies’ Compliance

Manila: The Department of Energy (DOE) might not have the police powers to run after erring oil companies, but it continues to monitor and report violations to other relevant agencies, its officer-in-charge said Wednesday.

According to Philippines News Agency, Energy OIC Sharon Garin mentioned that the issue of an oil cartel in the country is based on unconfirmed information. She acknowledged the existence of some forms of anti-competitive behavior in the industry, though not widespread. "There are still some activities that are not of the best interest of the public," Garin stated.

The DOE remains vigilant in its monitoring efforts. Although lacking direct enforcement powers, the department reports possible smuggling activities to the Bureau of Customs (BOC). In cases of misdeclaration by oil companies, the Bureau of Internal Revenue (BIR) is notified. For anti-competitive practices, the Philippine Competition Commission (PCC) or the Energy Regulatory Commission (ERC) is informed.

During the same briefing, Rodela Romero, Assistant Director of the DOE's Oil Industry Management Bureau, highlighted that cartelization violates the Oil Deregulation Law. She emphasized that complaints trigger investigations into such activities.

Under Chapter 3, Section 11 of Republic Act 8479, cartelization is defined as any agreement or action by refiners, importers, and dealers to manipulate prices, restrict outputs, or divide markets, thereby restraining trade or free competition.