Manila: The Department of Energy (DOE) on Thursday appealed to senators for enhanced legal authority to combat oil hoarding, as the Senate examined the country's downstream oil deregulation framework amidst escalating fuel price shocks and supply uncertainties. During a Senate Committee on Energy session, chaired by Senator Erwin Tulfo, DOE officials were questioned on their capacity to swiftly address instances of petroleum product hoarding.
According to Philippines News Agency, Energy Secretary Sharon Garin revealed that fuel hoarding underscored the department's constrained regulatory authority over the liberalized, market-driven oil sector, particularly in areas of pricing, inventory levels, and enforcement. Garin stated that the existing law does not explicitly confer such powers, necessitating reliance on other legal avenues.
Tulfo highlighted the limitations faced by the government in safeguarding consumers when fuel supplies are allegedly manipulated to affect market dynamics. He emphasized the urgent need for legislation that empowers the DOE to act decisively against such practices without resorting to lengthy court processes.
DOE Undersecretary Riolita Inocencio outlined proposed amendments aimed at defining hoarding by petroleum traders and consumers and instituting corresponding penalties. For petroleum traders, hoarding indicators might include intentional stock withholding, unjustified facility closures, misleading out-of-stock notices, and unwarranted delivery delays. Consumer hoarding could entail bulk purchases exceeding normal consumption, frequent acquisitions within short intervals, or stockpiling beyond usual requirements.
The DOE's proposal recommends penalties for trader hoarding, ranging from fines of PHP250,000 to PHP500,000, or imprisonment from six months to two years. Consumer hoarding could incur fines between PHP10,000 and PHP100,000, alongside potential imprisonment of up to six months. Inocencio noted that penalties would increase during energy emergencies.
The proposal further seeks to empower the DOE to mandate unbundled petroleum price reporting, revoke or suspend certificates and permits, and issue preventive suspension orders during pending administrative proceedings. Garin acknowledged that the Oil Deregulation Law, enacted in 1998 to liberalize the market, now requires reevaluation to address contemporary challenges.
Senate President Sherwin Gatchalian stressed the necessity of maintaining private investment in the oil sector while ensuring government oversight over pricing and cost structures, given the country's reliance on imported oil. He advocated for regulatory measures to reassure the public of fair fuel pricing and prevent abuse during crises.
Garin highlighted the absence of a dedicated regulator for oil pricing, contrasting it with regulated electricity rates. The hearing involved discussions on various legislative proposals aimed at amending or reviewing Republic Act No. 8479, addressing issues such as fuel price transparency, mandatory price unbundling, consumer protection, and government authority amid global oil crises.
Tulfo underscored the timeliness of the review, noting that fuel price increases impact transport fares, food costs, business expenses, and household budgets, with geopolitical tensions further threatening supply stability.
