MANILA – Senator Sherwin Gatchalian called on fellow lawmakers to pass legislation aimed at bolstering transparency in petroleum price movements to protect consumer interests. This push follows a Supreme Court decision affirming the necessity of disclosing detailed oil price adjustments.
According to Philippines News Agency, Gatchalian highlighted the need for clear and accessible information regarding significant changes in oil prices during a news release on Friday. This comes in the wake of a legal validation by the Supreme Court regarding a Department of Energy (DOE) circular that mandates oil companies to unbundle or disclose comprehensive details concerning price adjustments, complete with explanations and accompanying documentation.
“It is better that we enact a law to ensure continued implementation of these policies,” Gatchalian stated, emphasizing the importance of institutionalizing such transparency measures. He further noted the critical role of open and honest communication between the government, oil companies, and the public in maintaining trust and safeguarding public interest, especially in times of volatile market prices.
In pursuit of this objective, Gatchalian has introduced Senate Bill (SB) 2081, which seeks to amend the Downstream Oil Industry Deregulation Act. The proposed amendment would grant explicit authority to the DOE to require downstream oil industry participants to submit detailed information on the cost components of pump prices. This requirement would be triggered when the average price of Dubai crude oil remains at or above USD 80 per barrel for three consecutive months.
SB 2081 outlines a comprehensive framework for the disclosure of costs associated with oil pricing. It mandates the disclosure of actual costs including international components like import costs, freight, insurance, and foreign exchange impacts; government impositions such as import duties, excise taxes, and value-added taxes; as well as biofuel costs and other operational expenses like port charges, refining costs, storage, handling, marketing, transshipment, and oil company profits.
This legislative effort underscores a proactive approach to ensure transparency in the oil industry, aiming to provide consumers with clearer insights into the factors driving petroleum prices and to foster a more informed public discourse around energy costs.