6 oil firms willing to open books in response to ‘overpricing’ allegations

MANILA, Philippines—Six oil companies belonging to the Philippine Institute of Petroleum (PIP) said they would “open their respective books” if asked to do so, amid allegations of overpricing and cartel, and calls for greater disclosure from the downstream oil players.

In a statement issued Sunday, PIP said its member companies—Chevron (Philippines) Inc., Liquigaz Philippines Corp., Petron Corp., PTT Philippines Corp., Pilipinas Shell Petroleum Corp., and Total (Philippines) Corp.—will be baring their financial statements, also in support of President Aquino’s call for transparency.

According to PIP, its member companies agreed to such an additional review, despite the fact that they have been submitting to existing stringent reportorial requirements imposed by the Department of Energy (DoE) as mandated by appropriate provisions in the Downstream Oil Deregulation Law; the financial protocols of the Bureau of Customs (BoC) and Bureau of Internal Revenue (BIR); and the statutory submissions to the Securities and Exchange Commission (SEC).

“In response to various stakeholders’ allegations of overpricing by oil companies, PIP members expressed their willingness to have their books opened and reviewed in order to provide the public well-studied, accurate and complete information on the issue of oil pricing,” the group said in a statement.

“The PIP enjoins all other oil players to heed President Aquino’s call for openness and transparency by also opening their books,” it further stated.

PIP warned, however, that any additional review should have well-defined objectives, taking into consideration the views and opinions of various sectors with emphasis in promoting the balanced interests of both the consumers and the oil industry.

The group is proposing that for this additional review to be credible, the review team to be put up should be composed of legitimate representatives from the affected sectors and should be competent and well-respected in their respective fields.

PIP, a non-stock, non-profit grouping of businesses operating in the downstream oil industry in the Philippines, has long been an advocate of reforms and standards in the oil industry, helping ensure a level playing field.

Various groups have since been calling on the Aquino government to step up its efforts in addressing the continuing increases in local fuel prices. Among their suggested measures include the junking of the Oil Deregulation Law, reducing taxes and finding ways of importing cheaper oil from other sources.