‘Anticompetitive’ activities of oil firms under scrutiny
The Department of Energy (DOE) is on the lookout for “anticompetitive” practices of some fuel retailers amid price volatility caused by the Middle East conflict.
At a briefing in Taguig on Wednesday, DOE officer in charge Sharon Garin was asked if there was a “cartel” in the oil sector, given the noticeably similar fuel price adjustments being implemented every week.
She did not deny that there was cartelization, or a deal for coordinated pricing among industry players. However, the official did not single out anyone allegedly involved in this activity, as this was still unconfirmed.
“But I would say there’s still some form of anticompetitive behavior in some, not all … There are still some activities that are not in the best interest of the public,” Garin told reporters.
Possible violations
Some of the unresolved illicit practices include smuggling and misdeclaration, as evident by “disparities” in export and import data, Garin noted.
On price adjustments, energy officials said implementing seemingly harmonized pricing could not be considered illegal since they were just “trying to protect their own businesses.”
“We just need to monitor that it matches the increases of the adjustments in the international market,” she said.
Rodela Romero, assistant director of the DOE-Oil Industry Management Bureau, said that there was still “competition on the ground level,” with some areas imposing cheaper prices.
Romero floated that if the DOE could identify or confirm violations and issues, the agency may launch another study on cartelization or anticompetitive behavior of companies.
But Garin also said that the agency had no teeth to go after these disobedient firms. Once there is a complaint, that is the only time the DOE could launch a probe or forward a report to the authorities, including the Bureau of Customs, the Bureau of Internal Revenue, the Philippine Competition Commission and the Energy Regulatory Commission.
“So we are the agency that can make the observations and report it to the proper agency,” she said.
