The outgoing chairman of the Senate Energy Committee said so on Wednesday. “can take time” Amend the Petroleum Deregulation Act to include provisions that will make oil prices more transparent through cost unbundling.
“The solution to amending the oil deregulation law is not an immediate solution (to the rise in oil prices), it is a long-term solution,” Senator Sherwin T. Gatchalian told the media during a briefing.
Changes to the law must ensure “transparency in terms of price, volume of oil companies,” the senator said, “but we must also respect their… proprietary secrets and business dealings, as many of their contracts are proprietary in nature. »
During the committee‘At the consultative meeting with petroleum industry stakeholders on Tuesday, the Department of Energy said mechanisms should be put in place under Republic Act 8479 or the Oil Deregulation Act. downstream oil industry to determine true fuel costs.
“The industry take is 19% — these include all the other elements that the oil companies have added to the prices at the pump, which‘this is what we would like to inquire about,” Undersecretary of Energy Gerardo Erguiza, Jr. said during the hearing.
To have proper safeguards, the government will need to receive information about the price of an oil company’s cargo, the date it was received and the costs of its inventory, Gatchalian said.
With such mechanisms, “the government can prevent abuse in times of abnormal international prices,” he added.
As an immediate solution to the continued rise in oil prices, the senator proposed an extension of the cash assistance program to 3,000 pesos per month for jeepney drivers and 1,000 pesos per month for tricycle drivers during of the next five months.
He said it would cost about 4 billion pesos, which is less than the 150 billion pesos in potential revenue loss for the government if the excise tax is lifted.
“We can also expand the government’s Libreng Sakay (free driving) scheme, so that those who stop traveling their routes or driving the roads can be hired by (the) government to serve the public,” he said. — Alyssa Nicole O. Tan