DOE to delay implementation of ‘unbundling’ circular

The implementation of a controversial circular requiring oil companies to “unbundle” or provide details of price adjustments on petroleum products will be delayed, an official of the Department of Energy (DOE) said Friday.

“It would be delayed as an Annex of the circular was not published so our Legal Services decided to have it completely republished in order to avoid any possible confusion,” Energy Assistant Secretary Leonido Pulido III told GMA News Online.

“[The] Annex contains the list of cities where the unbundling circular will begin being implemented,” Pulido said.

The DOE’s Department Circular No. DC2019-05-0008 was supposed to take effect next week.

The controversial circular is being contested by the Philippine Institute of Petroleum Inc. (PIP) before the Makati Regional Trial Court as it filed a “Petition for Declaratory Relief with Application for a Temporary Restraining Order and/or Preliminary Injunction.”

Unbundling fuel prices “contravenes the dynamics of a deregulated oil market,” the oil companies claimed.

The DOE circular mandates oil companies to “unbundle” or provide the DOE with the detailed computation and corresponding explanation and supporting documents on the causes or reasons of the price adjustment.

Oil companies adjust domestic fuel prices on a weekly basis, usually on Tuesday, based on price movements in global markets.

PIP counts as members Chevron Philippines Inc., Isla LPG Corp., Petron Corp., Pilipinas Shell Petroleum Corp., PTT Philippines Corp., and Total Philippines Corp.

Considering that the republication is made Friday, June 28, 2019, “the effectivity of the circular will be on 13 July 2019 which is 15 days after its complete publication,” Pulido said.

In a separate message to reporters, Laban Konsyumer Inc. president Vic Dimagiba said a republication of the circulation is like a “TRO” since the “republication means status quo... no implementation of the circular.” — RSJ/VDS, GMA News