DoE’s fuel-unbundling circular ordered stopped
Credit to Author: JORDEENE B. LAGARE| Date: Fri, 12 Jul 2019 16:25:57 +0000
A local court has ordered the Department of Energy (DoE) to suspend its implementation of a circular requiring oil companies to unbundle or itemize their fuel costs.
In its July 3 ruling, copies of which were released by consumer group Laban Konsyumer Inc. to the media on Friday, Taguig Regional Trial Court Branch 70 said it issued a temporary restraining order (TRO) to the DoE “to cease and desist” from implementing Department Circular DC2019-05-0008, or the Revised Guidelines for the Monitoring of Prices in the Sale of Petroleum Products by the Downstream Oil Industry in the Philippines.
“After a careful perusal of the allegations and arguments raised by the plaintiff in its complaint and additional arguments raised during the summary hearings on June 25 and July 2, as well as the counter-arguments raised… for [the] defendant,” the court found a reason to issue the order and “maintain status quo,” the court said.
The circular, which was supposed to take effect this month, required firms to submit their respective pump and liquefied petroleum gas price movements (increase, decrease or no adjustment), and the detailed computation and supporting documents on the reason of the price adjustment.
It also required them to disclose the components of crude prices, including their profit margin.
The TRO is effective for 20 days from the day it was received.
The court had set a hearing for the application of a Writ of Preliminary Injunction on Friday, during which the DoE must explain why the TRO should not be granted.
The order stemmed from a complaint filed on June 24 by Pilipinas Shell Petroleum Corp., which said the circular would lead the oil industry to regulation.
Pilipinas Shell is part of the Philippine Institute of Petroleum Inc. (PIP), which had applied for a TRO before a Makati regional trial court, which issued one lasting 20 days on June 28, according to PIP Executive Director Teddy Reyes.
Other PIP members are Chevron Philippines Inc., Isla LPG Corp., Petron Corp., PTT Philippines Corp. and Total Philippines Corp.
Responding to the decision, Energy Assistant Secretary Leonido Pulido 3rd said on Friday his department would discuss with the Office of the Solicitor General (OSG) on how it would move forward with the circular’s enforcement.
“[W]e will, of course, respect the court order, but we will discuss the same with our counsel, the OSG, as to how to proceed. We will discuss how we can move to have the order reconsidered or appeal to the appropriate authority,” Pulido said in a text message to The Manila Times.
The Energy department “is serious in its objective in implementing the unbundling circular,” the official stressed.
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