HOUSE Ways and Means Committee Chair and Marikina 2nd District Representative Miro Quimbo wants the Philippine Competition Commission (PCC) and the Energy Regulatory Commission (ERC) to look into a possible collusion among big oil companies in the weekly adjustment of fuel prices that may be akin to cartel-like behavior.
Quimbo pushed for the intervention of the ERC and the PCC after Secretary Arsenio Balisacan of the Department of Economy, Planning and Development (DEPDev) told the maiden hearing of the Legislative Energy Action and Development (LEAD) Joint Committee on Wednesday that regulators should exercise their powers to ensure that oil firms are playing fair.
“I think the issue is that the oil regulators are not exercising their powers to make sure that market players are being fair in the way they play their game in the market,” Balisacan told the House panel.
“In Econ 101, Mr. Chair, when there are very few players in the markets, and you ask these players, the government may be asking them to cooperate, to coordinate, they are actually asking a cartel,” Balisacan said.
According to Quimbo, stronger enforcement by the PCC and the ERC is in order particularly amid the ongoing oil crisis driven by the escalating tension in the Middle East.
Quimbo noted that although the oil industry is deregulated today, the government still has mechanisms to curb anti-competitive practices.
“In reality, [government] has sufficient powers in so far as the ERC is concerned and in so far as the PCC is concerned to be able to prevent, determine, investigate, and penalize individuals who are excessively profiteering or dominating their position,” Quimbo said.
“Ito ‘yung mga maliliit na bagay na ‘di napapansin ng publiko pero in reality napaka-strong ng potential impact in lowering the price because you are able to prevent a collusion among these players,” he added.
