Press Release
October 6, 2008


Senator Bong Revilla denounced the apparent inaction of Department of Energy (DOE) to urge a price rollback of petroleum products, inspite of the oil price drop in the global market. "The DOE has lot of explaining to do to the oil consumers. The lack of an oil price rollback this past week is a big question mark to the public." Revilla said.

Revilla also lambasted oil companies for their refusal to roll back their pump prices. "Our people deserve a break. If these oil companies continue to refuse to adjust their pump prices according to prevailing market prices, we will not be able to help the general sentiment that the public is being taken advantage of."

This was the senator's reaction in the wake of the report of the oil industry watchdog Consumer and Oil Price Watch (COPW) that oil firms overcharge oil prices by P8 per liter.

Based on COPW computations, imported diesel should cost P36.43 per liter, using the average price of four-week inventory, instead of P44.62 per liter which was asserted by the local oil companies.

According to Revilla, the DOE should explain to the public why it did not push for the reduction of the oil prices in the local market to arrest long time suspicion that there is oil price monopoly in the country. "Lack of explanation will further enflame public furor," he said.

He recalled that the average Dubai crude price last April was US$103.47 per barrel or P4,327 per barrel at the prevailing exchange rate of P41.82 per dollar at that time. The pump prices then were P47.96 per liter of gasoline and P40.94 per liter of diesel.

"Now, the average Dubai crude price is US$90.00 per barrel or P4,233.60 per barrel at the exchange rate of P47.04 per dollar. The pump price of gasoline is P50.07 per liter while diesel is at P48.98 per liter," Revilla pointed out. "What is then the basis of these oil companies to charge more at the pumps even if we see that the price of crude is lower than it was in April?" he lamented.

The lawmaker reminded the DOE its mission of ensuring sustainable, stable, secure, sufficient, accessible and reasonably-priced energy to the Filipino people.

"Considering the fluctuations of oil prices in the world market, subsequently there should be a downward movement of oil prices in the local market," he said.

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