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THE
Department of Energy (DOE) is set to commission a
reputable third-party financial auditing company to
evaluate the books of local oil companies and ensure all
of the pricing methods, particularly for petroleum
products, are reasonable.
“We will
examine all and we will enlist the services of a
reputable accounting firm to see if there is
unreasonableness in the pricing,” Energy Secretary
Angelo T. Reyes said in a stakeholders’ meeting between
the DOE, oil companies, transport groups, industries and
consumers.
Several
transport-strike groups have announced plans to mount a
strike today, Monday, in protest of government’s
inability to cushion the sector from the impact of
steadily rising oil prices.
On
Friday, the energy chief said the auditing firm will
have to evaluate oil companies’ monthly report on
projected importation, monthly sales and inventory,
monthly actual sales and other documents that may affect
any price hike or adjustment.
Reyes
gave assurances all of the data to be collected and
evaluated will be made available to the public.
Major
oil companies, on the other hand, have agreed to present
their financial statements to prove there is nothing
irregular in price adjustments made in the past few
weeks in view of skyrocketing world oil prices.
Shell
Philippines country manager Edgar Chua and Petron Corp.
chairman Nicasio Alcantara agreed to open their
financial statements to allay impressions that oil
companies make money even as oil prices continue to
increase.
“We are
open to it and our financial statements have always been
open, as we regularly submit reports to the SEC,” said
Chua.
The
Shell official said oil companies are required to submit
their reports monthly and annually to SEC, adding that
there would not be any problem in allowing the DOE to
reevaluate their financial records.
Meanwhile, the Independent Philippine Petroleum
Companies Association (Ippca) also claimed that
smuggling also keeps prices of petroleum products high.
“In terms of percentage, we feel a pinch in our
businesses, as some [those who allegedly smuggle in
products] are able to sell petroleum products at
two-pesos to four-pesos lower than legitimate
importers,” said Fernando Martinez, Eastern Petroleum
Corp. chairman and chief executive and chairman of Ippca.
Chua, on
the other hand, noted that about P28 billion in
government revenues is lost due to smuggling of
petroleum products into the country, particularly in
parts of Bicol and Cebu, Central Luzon, Northern Luzon
and in Northern Mindanao.
Oil
companies have also agreed to increase the number of
stations giving one-peso discounts to public transport
groups.
Shell
and Petron have agreed to double to 300 the number of
service stations from 150 stations each.
Other
participants of the meeting are representatives from the
Department of the Interior and Local Government,
Department of Trade and Industry, Metropolitan Manila
Development Authority, Philippine National Police and
the Department of Transportation and Communications,
Efren de Luna of PCDO-Acto, Mar Garvida of Piston, Raul
Concepcion of Consumer and Oil Price Watch and Jess
Aranza of the Federated Industries Inc. |
