Solons to oil companies: Report how you come up

with increases in oil prices

The erratic spike in oil prices, which puts the transport sector and the motoring
public at a disadvantage, has prompted lawmakers to call for the disclosure of operations
and calculations of oil prices by the oil companies.
Rep. Rufus B. Rodriguez (2nd istrict, !agayan de "ro !ity# said the way these oil
companies peg the prices of gas and diesel is very unclear to the public because they do
not e$plain how they arrive at a price per liter.
Rodriguez and his brother, Rep. %a$imo B. Rodriguez (&arty'list, (bante
%indanao# filed )ouse Bill *+,-, which mandates oil companies in the &hilippines to
disclose to the public a detailed report of their operations and a comprehensive calculation
of how they arrive at the price of gas and diesel per liter.
.nder the bill, oil companies shall submit to the epartment of /nergy ("/# and
disclose to the public a very detailed and comprehensive report on their operations on a
monthly basis.
The said report shall include, but not limited to, the amount of oil they import per
month and at what prices, the amount of oil they sold, their revenue and e$penses, their
net income, and all other pertinent data as may be re0uired by the "/.
1ikewise, the bill re0uires oil companies to submit to the "/ and report to the
public how they come up with the price of gas and diesel per liter.
2They are re0uired to show a detailed calculation, including how much they earn
per liter, to the public,3 Rodriguez said.
)e said at present, oil companies are only re0uired to inform the "/ of any
impending ad4ustment in their prices hours before the implementation without disclosing
their inventory levels.
2This is very convenient for these oil companies because they could sell oil that
they purchased at lower prices at current price and make a killing at the e$pense of the
consuming public,3 Rodriguez said.
The %indanao solon said oil companies in the &hilippines have been increasing gas
and diesel prices regularly under the guise of rising oil prices in the world market.
NR # 3482B
MAY 30, 2014
25hile it may true that there are factors that control the prices of oil in the world
market which the &hilippine oil companies cannot control, it also cannot be argued that
these oil companies are reaping the benefits in the form of billions of pesos in revenues
and income,3 Rodriguez said.
Rodriguez said &etron !orporation reported that it returned to profitability after
posting a net income of &*.- billion for the year 266,, and a net income of &+., billion for
the first 0uarter of the year 26+6 while &ilipinas 7hell posted a &8.9 billion profit for the
first three 0uarters of 266,.
)e said it is apparent that as gas prices go up, the income of these companies also
goes up showing that as prices of oil worldwide increase, these companies also raise their
profit margin.
Rodriguez said mandating oil companies the disclosure of their operations and
calculations of oil prices, the public is informed and these companies can be held
accountable to the public if there are unconscionable profits earned by these oil companies
at the e$pense of the :ilipino people who are made to bear the hardships that high prices
bring. (-6) mvip