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Gov't lacks capacity to take over oil firms — DOE's Garin


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Gov't does not have capacity to take over oil companies — Energy chief

Energy Secretary Sharon Garin said Thursday it is not a good idea for the government to temporarily take over the operations of oil companies in the country, even as fuel prices continue to rise amid tensions in the Middle East.

According to the secretary, the Department of Energy (DOE) will roll out more directives to oil companies, but that taking over was “not a good idea right now.”  

“Government does not have that capacity kasi 14,000 po ang mga oil gas stations natin at several oil companies at ‘yung negosyo po na ito binitawan na po ito ng gobyerno,” she said on Super Radyo dzBB.

(Government does not have that capacity because we have 14,000 oil and gas stations and several oil companies, and this business has already been relinquished by the government.)

“Now po, if we do change the whole ecosystem in the middle of this problem, eh, baka naman lalong mag-suffer po ang ating mga kababayan kasi baka po hindi ganoon ka-efficient, baka magsara pa ‘yung iba kasi hindi kaya ng gobyerno to manage 14,000 gas stations in the whole country,” she added. 

(Now, if we change the whole ecosystem in the middle of this problem, our fellow citizens might suffer even more because it might not be as efficient, and some might even close because the government cannot manage 14,000 gas stations across the whole country.)

She was questioned about a Supreme Court ruling which states that under the  Downstream Oil Industry Deregulation Act, the DOE, on behalf of the president, has the power to temporarily take over operations of oil firms in case of national emergency.

“Kung DOE lang po ‘yung pag uusapan, mga 1,000 lang po ‘yung tao ng DOE. We are not in the business of oil, ano. We can regulate. I think the most— meron nga namang emergency powers but it’s more monitoring and controlling any abuses there,” she said.

(If we are only talking about the DOE, the DOE only has about 1,000 people. We are not in the business of oil. We can regulate. I think the most— there are emergency powers, but it’s more about monitoring and controlling any abuses there.)

This came after President Ferdinand Marcos Jr. declared a state of national energy emergency and ordered the adoption of a Unified Package for Livelihoods, Industry, Food, and Transport for affected sectors.

Marcos has also signed into law the measure giving him emergency power to suspend or reduce the excise tax rate on fuel. 

Meanwhile, Garin said the government will discuss the issue on rising prices.

“Naghahanap kami ng paraan para tulong-tulong lahat. Oil companies may kaonting sakripisyo, gobyerno may kaonting sakripisyo at saka para matulungan po ‘yung mga kababayan natin,” she said.

(We are looking for ways so that everyone can help together. Oil companies make a small sacrifice, the government makes a small sacrifice, so that we can help our fellow citizens.)

“Price control kailangan ‘yung tamang formula lang na hindi din tayo mauubusan na mag sara lahat ng gas stations natin, oil companies,” she added.

(Price control requires the right formula so that we also do not run out and all our gas stations and oil companies do not end up closing.)

So far, a total of 415 gas stations across the country are temporarily closed as of Wednesday morning amid the rising fuel prices, according to the police. — RSJ, GMA Integrated News