CHIZ WANTS FIRM GOVERNMENT ACTION AGAINST OIL COMPANIES

Opposition Senator Chiz Escudero believes that the closure of fuel stations is nothing more but a ploy to threaten the government and worry the public that the fuel shortage may lead to the masses panicking. The senator said oil firms will have to re-think these scare tactics to avoid causing riots

Yesterday, more gas stations have limited their operations blaming Executive Order 839 which puts a freeze on oil prices. According to the oil firms, the EO has caused a shortage in the supply of fuel. The government has even threatened to take over these companies.

On Thursday, even the LPG Marketers Association hinted that a shortage in the supply of LPG will be possible.

"The only way to end the standoff between major oil companies and the government is to review or junk the oil deregulation law." Escudero said as saying that this is the only way to resolve the exchange of threats between oil players and Malacañang.

"The way I see it, Congressional action is the most viable way of avoiding the dispute. Threats of oil shortage and even imposing price ceilings are not helping both the oil industry and the consumers," Escudero said.

He pointed out that Section Two of Republic Act No. 8479 says that it is the policy of the State to liberalize and deregulate the oil industry to ensure a truly competitive market under a regime of fair prices, adequate and continuous supply of environmentally-clean and high petroleum products. Escudero said that the liberalization of the oil prices have raised questions of whether oil companies collude with each other in determining the proper price levels of gasoline, diesel, kerosene and lpg. "

The 40-year-old lawmaker also noticed how the DoE handled the problems. "The public doesn't know if Energy Secretary Angelo Reyes is the spokesman or lackey of the Big 3 (Petron, Caltex, Shell)" he said.

According to Section 7 of RA 8479, the Department of Trade and Industry (DTI) and Department Of Energy (DoE) shall take all measures to promote fair trade and prevent cartelization, monopolies, combinations in restraint of trade, and any unfair competition in the (oil) Industry," he noted. Escudero added that it should be the government that should defend the public from any abuse and not the other way around.