The Department of Energy (DOE) on Wednesday expressed concern that some oil companies continue to engage in anti-competitive behavior.
“I would say there’s still some form of anti-competitive behavior in some, not all,” DOE officer-in-charge Sharon Garin said.
“There are still some activities that are not of the best interest of the public,” said Garin. She did not identify the companies or specific practices, calling them “unconfirmed.”
Garin made the remarks in response to questions about possible cartels within the oil industry.
Republic Act 8479, also known as the Downstream Oil Industry Deregulation Act of 1998, defines cartelization as any agreement, combination or concerted action by oil firms to fix prices, restrict output or divide markets in restraint of trade or free competition.
“I would not say that there is no cartel,” she said. “Who they are, that is something to confirm, but if there is no cartel, there’s no purpose for OIMB [Oil Industry Management Bureau] to be on guard all the time.”
Garin cited ongoing issues in the downstream oil industry, including instances where some gas stations sell products P10 lower than others, suggesting potential underlying problems.
“Maybe that’s good for the country, but that could also be something that there is some smuggling,” Garin said.
She said these are “still speculations, it’s still not confirmed.” She also said there’s a “probability that there are activities that are not desirable or in line with the law.”
The DOE is working with the Bureau of Customs to address disparities in oil imports.
“It’s still a work in progress because even the smuggling is still not curtailed yet,” Garin said.
“There are still things happening because we base it on the reports on the export of other countries as our import. Sometimes there are disparities,” she said.
She said these disparities could indicate “a form of smuggling or misdeclaration.”
“So there are still players that are not obedient players, let’s say, of the current rules and regulations,” she said.
Garin also acknowledged that oil companies typically implement the same level of price adjustments.
“This has been a practice that they have been doing,” she said. “I think there is also a coordination among them, because to avoid, I guess, it would be disadvantageous if the other companies are lower. So they are trying to protect their own businesses.”
She said the DOE continues to monitor adjustments to ensure they align with international market fluctuations.
