Inadequate rollback makes oil price unbundling imperative – Zarate
Published Oct 1, 2019 04:22 pm
By Ellson Quismorio
The need for oil firms to unbundle their oil pricing data is more crucial than ever, says Bayan Muna Party-List Rep. Carlos Zarate.
Bayan Muna partylist Rep. Carlos Isagani Zarate
(Bayan Muna Partylist / FACEBOOK / MANILA BULLETIN) This, after the Department of Energy (DOE) pointed out that the rollbacks implemented by oil companies on their pump prices Tuesday should have been bigger that what the firms announced. "Most oil companies reduced gasoline prices by P1.45/L, diesel by P0.60/L and P1.00/L for kerosene but DOE Director Rino Abad that gasoline prices should have gone down by P1.60-1.70/L, diesel by P0.60-P0.70/L and P0.90-P1.00/L for kerosene," said Zarate, who is a Senior Deputy Minority Leader. "He further said that oil companies should explain why their computations not aligned with the DOE computations," Zarate added. It was last August when Bayan Muna reminded oil firms about the existence of Department Circular (DC) 2019-05-0008, wherein the DOE ordered the companies to unbundle or itemize their fuel price components. The circular requires oil firms to submit reports on its segregated price components, including details on profit margin. "Kung ipinatupad na ang unbundling circular ng DOE ay di na sana nagiging problema ito at nakikita na talaga ng mga consumer kung niloloko tayo ng mga oil companies (Had the DOE's unbundling circular been implemented, we wouldn't have this problem and the consumers would see if they are being duped by the oil companies)," added the Davao-based congressman. Zarate added that having access to unbundled oil price data would provide answers as to why pump price hikes always seem to be bigger than price rollbacks. "Just like what happened last week with an increase in gasoline at P2.35/L, diesel at P1.80/L and kerosene at P1.75/L. Now compare this to the rollback this week and you will really question their computations," he said. "It's high time for the unbundling of oil prices for a more transparent oil industry and to protect consumers," Zarate stressed. Zarate also said that the unbundling mechanism would help tell the government whether or not the oil firms have been overcharging consumers, especially with the added excise taxes on fuel brought about by the Tax Reform for Acceleration and Inclusion law.
Bayan Muna partylist Rep. Carlos Isagani Zarate(Bayan Muna Partylist / FACEBOOK / MANILA BULLETIN) This, after the Department of Energy (DOE) pointed out that the rollbacks implemented by oil companies on their pump prices Tuesday should have been bigger that what the firms announced. "Most oil companies reduced gasoline prices by P1.45/L, diesel by P0.60/L and P1.00/L for kerosene but DOE Director Rino Abad that gasoline prices should have gone down by P1.60-1.70/L, diesel by P0.60-P0.70/L and P0.90-P1.00/L for kerosene," said Zarate, who is a Senior Deputy Minority Leader. "He further said that oil companies should explain why their computations not aligned with the DOE computations," Zarate added. It was last August when Bayan Muna reminded oil firms about the existence of Department Circular (DC) 2019-05-0008, wherein the DOE ordered the companies to unbundle or itemize their fuel price components. The circular requires oil firms to submit reports on its segregated price components, including details on profit margin. "Kung ipinatupad na ang unbundling circular ng DOE ay di na sana nagiging problema ito at nakikita na talaga ng mga consumer kung niloloko tayo ng mga oil companies (Had the DOE's unbundling circular been implemented, we wouldn't have this problem and the consumers would see if they are being duped by the oil companies)," added the Davao-based congressman. Zarate added that having access to unbundled oil price data would provide answers as to why pump price hikes always seem to be bigger than price rollbacks. "Just like what happened last week with an increase in gasoline at P2.35/L, diesel at P1.80/L and kerosene at P1.75/L. Now compare this to the rollback this week and you will really question their computations," he said. "It's high time for the unbundling of oil prices for a more transparent oil industry and to protect consumers," Zarate stressed. Zarate also said that the unbundling mechanism would help tell the government whether or not the oil firms have been overcharging consumers, especially with the added excise taxes on fuel brought about by the Tax Reform for Acceleration and Inclusion law.