DOE: Hefty fine awaits oil firms defying price orders
Local oil firms that defy the government’s cap on fuel price hikes and the set minimum rollback could face hefty fines and jail time.
In a media briefing on Monday, Energy Secretary Sharon Garin said the state of national energy emergency declared by President Marcos gives the government more authority to dictate or limit price adjustments amid uncertainties in the global market caused by the war in the Middle East.
“So that’s our new rule now. That’s because of the issuance of the executive order, which triggered the additional powers of government to prescribe the price during these times of emergency,” Garin told reporters.
“The rollback is now mandated by the government … DOE (Department of Energy) is now subscribing the price increase limitation,” she also said.
Garin earlier said the government could not put limits amid the existence of the oil deregulation law.
According to the DOE chief, her agency is ready to issue show-cause orders against companies that fail to comply with the adjustments the government has set.
While she noted that every firm has been compliant so far, Garin said erring fuel retailers may be slapped with penalties, especially affecting their permits.
Rino Abad, director of the DOE’s Oil Industry Management Bureau, added that oil companies would have to deal with three months to one year of imprisonment and a fine ranging from P50,000 to P300,000.
Shipments expected
Just a week after the war broke out in the oil-producing region on Feb. 28, Filipinos have been coughing up more money to buy fuel products, particularly diesel, with prices hitting as high as P170 per liter.
But motorists saw a break in surging prices after the United States and Iran agreed on a ceasefire, with local fuel retailers implementing big-time reductions.
Following last week’s price cuts, oil firms will again have to slash diesel prices by at least P24.94 per liter; P3.41 for gasoline; and P2 for kerosene.
Currently, the country’s supply is sufficient for 52 days, according to Garin.
Two more diesel shipments, carrying about 650,000 barrels, are expected to arrive this week in Subic Bay Freeport and Davao City.
In total, the government-led procurement of diesel involves 1.12 million barrels.
P10 fare hike petition
Despite the scheduled rollback, transport group Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide, or Piston, on Monday asked the Land Transportation Franchising and Regulatory Board (LTFRB) for a P10 increase in jeepney fares.
In a petition filed before the LTFRB, the group said this is to address the sustained economic losses of drivers and operators due to high fuel prices. It also cited the Marcos administration’s alleged inaction in systematically addressing the fuel crisis.
Piston said the P23 per liter diesel rollback that took effect on April 14 was insufficient to offset the losses in jeepney drivers’ take-home pay.
“Even at post-rollback prices, diesel in Metro Manila costs approximately P123.40 per liter—86 percent higher than the P66.40 per liter recorded in October 2023, when the current fare was last set,” it said in a press statement.
“At 30 liters a day, fuel alone costs a driver roughly P3,700. Combined with boundary, maintenance, and other daily expenses, total operating costs remain around P5,600—against gross revenues of only P2,600 to P3,900 at the current fare. Drivers are still losing P1,700 to P3,000 per day,” it added.
In further justifying its petition, Piston said both rollbacks rest on a “collapsing” ceasefire involving the United States, Israel, and Iran.
Fluctuating prices
Mr. Marcos, meanwhile, said the government is continuously looking for ways to assist Filipinos as they continue to bear the brunt of the war.
“The situation in the Middle East shifts constantly. One day there’s war, the next day there isn’t. Whether the Strait of Hormuz [where global oil shipments pass through] is closed or not, oil prices fluctuate—it all keeps changing,” the President said.
“So whatever we need to do to adjust, to lessen the burden on our fellow citizens, we are pursuing many different initiatives. And as this continues, we are still thinking, still looking for what more can be done,” he added. —WITH REPORTS FROM LUISA CABATO AND DEXTER CABALZA
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