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No legal recourse vs oil firms, says justice chief

By Tetch Torres
INQUIRER.net
First Posted 17:31:00 11/16/2009

Filed Under: Oil & Gas - Downstream activities, Consumer Issues

MANILA, Philippines—Justice Secretary Agnes Devanadera admitted that the government has no legal recourse against oil companies if they will renege on their promise to give discounts in typhoon affected areas.

In a press conference Monday, Devanadera said “we are back on deregulation, we cannot impose. We have no legal recourse if they will not comply with the giving of discounts.”

But Devanadera said that the Executive Department is confident that the oil firms will be true to their promise that they will provide discounts in typhoon affected areas.

These areas include Benguet, Baguio, Pangasinan, Eastern Laguna, Rizal, Ilocos Sur, Ilocos Norte, Mountain Province, Isabela, Cainta, Marikina, Malabon and Pasig.

Devanadera said the oil companies themselves identified these areas with a confirmation from the National Disaster Coordinating Council (NDCC).

“This is a commitment. They identified the areas where they will give their discount packages. I don’t see why they will not comply,” she added.

Petron, in a letter to the Department of Energy assured that once Executive Order 839 is lifted, they will offer a discount of P2 per liter for diesel, P1.50 per liter for kerosene, P1.25 per liter for Premium Gasoline, P0.85 per liter for regular gasoline and P1/KG for household LPG.

Retail prices in calamity areas will be effectively lower as compared to prices prevailing in adjacent, non-calamity areas. Discount levels will be maintained until Nov. 30.

Meanwhile, SEAOIL assured that they will be providing special discounts of P2 per liter for diesel, P1.50 per liter on kerosene, P1.25 per liter for Premium gasoline and unleaded gasoline and P0.85 per liter for regular gasoline. Discounts will also be up to Nov. 30.

Devanadera, meanwhile said Shell also assured that they will provide discounts though refused to give the figures during its meeting Friday with government officials and other oil firms.



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