Closure of fuel stationsploy to threaten gov’t?

EDITORIAL

The closure of fuel stations maybe nothing more but a ploy to threaten the government and worry the public that the fuel shortage may lead to the masses panicking. These may just be scare tactics of oil firms.

Recently, more gas stations limited their operations blaming Executive Order 839 which was lifted as of press time which puts a freeze on oil prices. According to the oil firms, the EO caused a shortage in the supply of fuel. The government has even threatened to take over these companies. Even the LPG Marketers Association hinted that a shortage in the supply of LPG will be possible.

One way to end the standoff between major oil companies and the government is to review or junk the oil deregulation law,” according to some lawmakers like Sen. Francis Escudero, who said this may be the only way to resolve exchange of threats between oil players and Malacañang.

Congressional action is seen as 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.”

Section Two of Republic Act No. 8479 says 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.

According to the solon, liberalization of 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. AS to how the Dept. of Energy handled the problem. Escudero said “The public doesn’t know if Energy Secretary Angelo Reyes is the spokesman or lackey of the Big 3 (Petron, Caltex, Shell).”

According to Section 7 of RA 8479, the Department of Trade and Industry and 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. It should be the government that should defend the public from any abuse and not the other way around.