Oil companies warn against gov’t intervention

MAJOR OIL companies warned the government against intervention because of higher subsidies and fuel cost. Other oil companies are also enjoined to open their financial books to the public.

The Philippine Institute of Petroleum (PIP) said in a press conference yesterday there are a lot of investments involved in running a refinery but noted it will not stand in the way if the government wants to enter the Oil Industry again.

“The essence of deregulation is meant to make prices more competitive and to provide more choices for the consumers,” said Roberto S. Kanapi, vice-president of communications of Pilipinas Shell Petroleum Corp.

“In fact, prices could be higher if we used the same formula when the market was regulated.”

He added several countries who subsidize oil prices are now pulling back because of the high cost for the government. PIP member Petron corp. earlier offered its Bataan refinery for repurchase by the government “if it [government] believes it will help stabilize prices.” The firm also offered to sell back its retail stations if requested by the government. The group said it cannot second-guess the ability of the government but reiterated the need to keep the oil market deregulated.

“It really depends on what the government wants to do. We should have a mix of both importers and local refiners to keep inventory high. But of course refineries mean a lot of investments to keep it running,” said Sally C. Monteiro, executive director of the PIP. PIP earlier announced it is willing to allow the public to peruse oil companies’ financial records in support of the government’s call for transparency in the oil industry. The PIP member companies, Shell, Petron Corp., Chevron Philippines, Inc., Total (Philippines) Corp., Liquigaz Philippines Corp. and PTT Philippines Corp., said other oil companies should do the same.

“While we all file financial reports to the Securities and Exchange Commission, we want to tell the public that financial documents are available and they are welcome to peruse it,” said Charmaine V. Canillas, Public Affairs manager of Petron.

“We hope other oil players also do so,” she added. PIP wants relevant financial data to be gathered so the public can understand the oil industry.
It also said any review of the Oil Deregulation Law must include members from many sectors of society. The government is in the process of determining if it will review and recommend amendments to the Oil Deregulation Law.

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