Imee Marcos pushes for unbundling of petroleum prices

Senator Imee Marcos has filed a bill requiring the mandatory unbundling and disclosure of petroleum prices, amending the Oil Deregulation Law.

In her explanatory note for Senate Bill No. 2007, Marcos said the ongoing conflict involving Iran has disrupted global energy markets, highlighting the vulnerability of petroleum-importing countries such as the Philippines.

Marcos' proposed measure seeks to establish a rules-based pricing reference system under the Department of Energy.

Under the bill, all oil companies, refiners, importers, distributors, and retailers shall be required to unbundle and disclose the components of petroleum product prices.

''In periods of extreme volatility, the absence of mandatory price unbundling prevents both regulators and consumers from determining whether domestic price adjustments accurately reflect global cost movements or include unwarranted margins,'' Marcos said.

''By requiring a clear and standardized breakdown of price components, the bill aims to enhance transparency, empower consumers to make informed decisions, and strengthen regulatory oversight,'' she added.

The unbundled price shall include, but not limited to, the following components:

• Cost of crude oil or finished petroleum products;
• Freight and insurance costs;Refining and processing costs;
• Distribution and marketing costs;
• Taxes, including excise tax and value-added tax;
• Dealer margins; and
• Other relevant charges or adjustments.

Under the proposed law, the DOE is tasked to prescribe a standard format and frequency of disclosure to ensure uniformity and compatibility across industry participants.

The indicative price bands shall neither constitute price controls nor impair the market-based pricing system under Republic Act No. 8479. Further, oil firms shall retain the discretion to set prices subject to market conditions.

The crisis in the Middle East caused oil price shocks in the country, prompting the Marcos administration to declare a state of national energy emergency.

The Executive Order No. 110 directed and authorized the DOE "to take appropriate measures to safeguard the stability and adequacy of the country's energy supply and mitigate the adverse effects of disruptions in global energy supply markets."

Meanwhile, reports said that Iran wanted a lasting end to the war with the US and Israel, and pushed back against pressure to reopen the Strait of Hormuz while US President Donald Trump warned the country could be "taken out" if it did not meet his Tuesday night deadline to reach a deal.

Responding to a US proposal through mediator Pakistan, Tehran rejected a ceasefire, stating that a permanent end to the war was necessary. — BAP, GMA Integrated News