Govt is caught between business policy and oil prices, says Energy chief

Government is caught between the policy of keeping investors keen on doing business in the country and satisfying the public clamor for lower oil prices, the Department of Energy said on Tuesday. The situation has placed government in a cautious stance, particularly over the implications of a price-monitoring scheme in place against petroleum companies amid a deregulated industry, Energy Secretary Jose Rene Almendras said in a press briefing at the Philippine Information Agency office. “We have to balance off. I hope everyone understands, too. We are not protecting the oil companies. We are doing our mandate to ensure the country's energy security. We have no oil resource and we need to import from the world oil market and they dictate oil prices," he said. There is a need to address supply security as well, not just the concerns about prices, the Energy chief said. “We should ensure that local oil price adjustments are not higher than the increase in world oil prices. I even have to ask myself why do I want to be answerable to something that's not within my control? I'm trying to do my best to protect the interest of the Filipino people," he said. Still, he expressed his apprehensions when it comes to the supply situation and the possible reaction of petroleum companies. “We're not the easiest country to do business in. That's why I'm scared of a supply situation. What can we do when the oil companies tell us they want to back out," he said. His stand, the Energy secretary said, does not favor any oil company when it comes to pricing. “I can stare anybody in the eye, at any time, to the last centavo, and say every decision I have made in the last 11 months have been for the protection of the Filipino people. Perhaps not in terms of price protection, but maybe in terms of supply protection… People cannot isolate and forget about supply," he said. He also clarified earlier statement attributed to him on changing rules of the game. “Just to clarify that I want the Oil Deregulation Law reviewed. What I said was there is always room for improvement. I have my own agenda on which improvements I would like to see in the Oil Deregulation Law, which include not allowing anyone to import. We want stricter rules in reporting and inventories; I want penalties for oil companies that do not submit their report in time," he said. DOE-DOJ task force The joint Department of Energy-Department of Justice task force is now investigating the recent increase in pump prices oil companies did last week, the height of domestic travel in the country, Almendras said. Beyond last week, the increases in the last 12 months were all “justified," he said. “Yes, just last week, because every week we determine the amount of increase based on world oil prices. If they move within that range, then there is no basis to call on them. But what happened last week, the increase was more than what we calculated. They also have to show us the biofuels component in their costing," he said. He said they would be zeroing the price probe on selected oil companies. “Shell and other small oil players that increased prices last week," Almendras said. — VS, GMA News