The National Economic and Development Authority (NEDA) wants Congress to draft antitrust legislation to discourage oil companies and others, especially public utilities, from distorting market competition, such as by forming cartels, its officials said.

“We are thankful that [the oil firms] are rolling back prices. What I’m saying is that, I think there should be more,” said Economic Planning Secretary Ralph Recto, director general of the NEDA.

The price of unleaded gasoline dropped to below P35 per liter in December after hitting about P61 per liter in the middle of 2008.

However, Recto said that in the United States the peso equivalent of the price of gasoline was already at P25 per liter or lower.

Oil companies have said they keep four- to six-week inventories and so pump prices cannot be lowered immediately after crude oil prices drop.

Dennis Arroyo, NEDA director for policy and planning, said it was high time that the Philippines had an antitrust law to promote competition in the market.

Arroyo said delays in oil price rollbacks were affecting the movement of prices of other commodities and the inflation rate.

Recto said that based on oil price movements in the world market, there should be more rollbacks this year. Michelle V. Remo; edited by INQUIRER.net