MANILA (2nd District) Rep. Rolando Valeriano, vice chairperson of the House committee on ways and means, revealed that oil companies could potentially earn between P100 million and P200 million in profits by selling existing fuel stocks at higher prices.
This profit margin is estimated based on the 5 million to 10 million liters of fuel held in each oil firm’s depot, which were acquired before the recent surge in global oil prices. Valeriano argued that these companies should not have increased their prices yet, as the current inventory was purchased at a lower cost.
Valeriano explained that during a meeting about changing fuel taxes, he said, “Oil companies shouldn’t have raised their prices yet because they still have stock. The diesel and gasoline they increased prices on were bought before the war… We still have a month’s worth of stock here.” He added that for each depot with about 5 million liters, an oil company could make P100 million, and with 10 million liters, the profit could go up to P200 million.
Valeriano urged Energy Secretary Sharon Garin or Malacañang to intervene by ordering oil companies and gas stations to halt the sale of fuels at elevated prices and revert to last week’s rates.
He emphasized that it’s unfair for the public to suffer from very high prices for fuel that was bought at a lower cost, saying, “We shouldn’t be fried in our oil. It’s baseless and unfair for the people to endure such high prices for petroleum products that they bought at a cheaper price. It’s completely wrong.”
The congressman also highlighted that the House is actively working on bills concerning fuel excise tax and VAT. He pointed out that the Downstream Oil Industry Deregulation Act of 1998 grants the President the discretionary power to reduce tariffs on imported fuel, a power that does not require emergency circumstances.
Valeriano emphasized that this provision, enacted in February 1998, allows the president to lower tariffs if deemed warranted, offering a potential avenue to mitigate the impact of rising oil prices on consumers.
