Not everyone is buying the story of a looming fuel supply shortage being peddled by the country’s oil companies which on Monday claimed they have been financially bleeding because of the price freeze on oil products ordered by Malacañang late last month.

One of the non-believers, lawyer Vladimir Cabigao of the Social Justice Society (SJS), branded it as an “artificial shortage” hatched by the three biggest local oil firms to pressure the Palace into lifting Executive Order (EO) 839 pegging oil prices in Luzon to October 15, 2009 levels.

The SJS is the same group that accused the “Big Three” Pilipinas Shell, Petron Corporation and Chevron Philippines of acting like a cartel that has resulted into unreasonably high pump prices. A case on the cartel accusation is being heard before the Manila Regional Trial Court.

Cabigao said he sees a conspiracy among the oil companies and Energy Secretary Angelo Reyes, who during Monday’s oil industry stakeholders meeting disclosed that the country only has “eight to 13 days of finished fuel product inventory” left.

The lawyer claimed Reyes was already trying to condition the mind of the public that fuel has become scarce due to EO 839, which the oil companies want lifted. Shell has filed a petition against the EO before the Supreme Court.

An oil industry insider who requested anonymity also said the oil majors have began hoarding supplies from their retail stations to simulate a shortage.

“They (oil firms) just want the public to panic. Their alibis are simply not true,” the insider told the Manila Bulletin.

The insider, who is privy to contract details between oil companies and their suppliers, revealed that Shell has term crude and finished products from their supply unit in Singapore; Chevron has stable supply from Chevron Trading while Petron has crude supply ties with the Middle East.

This means that the Big Three, as well as smaller industry players that procure fuel from the trio, cannot reject or turn down imports from their petroleum suppliers.

“These are the contracts that they don’t want the people to know. They will be supplied automatically,” said the industry insider.

During the Monday meeting presided by the joint DoE-Department of Justice (DoJ) task force, the local oil players, nearly in unison, appealed for the lifting of the price cap and said it has hurt their profitability.

Rising world market prices have prevented them from importing fuel products to replenish their supply, which they are forced to sell at a loss, oil executives said.

Imported gasoline and diesel have both gone up by over $5 per barrel from the EO-prescribed October 15 price level-ceiling, it was reported.

Reyes, who has been slammed for adding to the oil scare with his pronouncement, said revoking the EO would be the president’s sole decision.

The conspiracy theory among oil firms was echoed by Senator Manuel “Mar” Roxas.

Roxas said Reyes’ statement siding with oil companies’ claims that supplies are running low reinforced the oil industry’s attacks on EO 839.

“Malinaw na muli na namang nakikipagkutsabahan itong si Angie Reyes sa malalaking kumpanya ng langis upang lalong pahirapin ang buhay ng ating mga kababayan,” said Roxas, chairman of the Senate Committee on Trade and Commerce.

“Mabuti nga at naglagay ng price cap ang Malakanyang sa presyo ng langis dahil totoo namang sobrang taas na ng sinisingil nitong mga kumpanya ng langis na ito. Bakit imbes na ipaglaban ni Angie Reyes ang EO 839 eh sinasang-ayunan niya pa ang sinasabi nitong mga kumpanyang ito?” Roxas asked.

“The DOE must be the ally of the consumers and not the private sector. It is the prime responsibility of the government to protect the interest of consumers, and not the private sector,” Roxas said.

Roxas is also critical of Reyes’ failure to compel oil firms to open their financial books to determine their real income, noting that instead of exercising his power to open the oil firms’ financial books, Reyes consistently engaged oil companies in dubious dialogues.

In a related development, Reyes failed Tuesday for the third time to comply with a subpoena from the Manila RTC requiring him to testify on the alleged cartelization of prices by the three leading oil companies.

Reyes informed Judge Silvino Pampilo Jr. of RTC Branch 26 by telephone that he was unable to attend the hearing due to a cabinet meeting being held in Malacañang.

This prompted Pampilo to reschedule Reyes’ testimony.

“He (Reyes) called me up and said he will come for Thursday’s hearing and personally appear to clarify some matters on the issue of oil prices,” the judge told reporters. (With reports from Rolly T. Carandang and Beng Ansula)