The Department of Energy (DoE) is seeking more administrative powers to implement measures that will ensure fair pricing of petroleum products and a level playing field in the deregulated downstream oil industry.
The additional authority was meant to enable the DoE to have the upper hand especially in the monitoring of fuel prices, in imposing administrative fines on erring oil companies and in filing court cases, according to Energy Undersecretary Jose M. Layug Jr.
“The DoE can then be more dynamic in its function as the watchdog for the general public,” Layug said on the sidelines of the Shell Energy Dialogue on Monday.
According to Layug, the additional powers could be effected by amending the Oil Deregulation Law.
At present, the DoE lacked teeth to impose any form of control on the downstream oil industry. Apart from letting market forces dictate local pricing, oil companies are also not required to fully disclose inventory levels, prices and other import numbers, according to the law.
Layug said the new task force to be formed jointly by the DoE and the Departments of Transportation and Communications (DoTC) and of Justice (DoJ), is expected to look into, review and possibly submit to Congress proposed amendments for the Oil Deregulation Law, which would include additional powers, among others.
The joint task force will not replace the existing DoE-DoJ task force as the new team with the DoTC will delve into a more in-depth study of the existing laws and how these should be amended, if needed, to suit the current situation.
The new task force will likewise look into pump prices as well as the financial books of the oil companies. Although the books of the oil companies can readily be submitted to the DoE, the department is constrained to act and file cases against any erring company.
Layug did not provide further details regarding the new task force, noting that they have yet to receive more directives from the national government. But to prepare for the creation of the task force, the DoE has started reviewing the necessary data, he added.