Supreme Court upholds DoE power to monitor fuel pricing data

THE Supreme Court (SC) upheld a Court of Appeals (CA) ruling affirming the Department of Energy’s (DoE) authority to monitor and regulate the submission of pricing data in the oil industry.

“(T)he deregulation of the downstream oil industry is not left without any kind of supervision at all… the Downstream Oil Industry Deregulation Act of 1998 or] Republic Act No. 8479 itself provides for measures on how to attain the liberalization of the downstream oil industry and the promotion of free competition,” the Supreme Court’s First Division ruled in a 24-page decision written by Justice Ramon Paul L. Hernando.

The tribunal rejected the petition for review filed by the Philippine Institute of Petroleum, Inc., Isla LPG Corp., PTT Philippines Corp., and Total Philippines Corp., upholding the appellate court’s October 2022 ruling and March 2023 resolution.

The case stemmed from the DoE’s Department Circular No. DC2019-05-0008 or the Revised Guidelines for the Monitoring of Prices in the Sale of Petroleum Products by the Downstream Oil Industry, requiring oil firms to submit detailed reports on the unbundled components of their prices.

The oil companies said this requirement violated the deregulation principles of RA 8479 and infringed on their right to protect trade secrets.

They argued the circular imposed forms of price control, onerous compliance measures, and put them at risk of exposing confidential trade information.

The Supreme Court held that DoE’s monitoring power is valid and consistent under its mandate in RA 8479.

Citing Sections 14 and 15 of the law, the SC said the Energy Secretary is empowered to require oil companies to submit detailed reports on petroleum products. The DoE is required to monitor and publish daily international crude oil prices and track oil prices.

The high court said the provisions of the circular merely required oil companies to notify and report to the DoE, without mandating, fixing, or restricting petroleum product prices.

“It sustained the argument of the DoE that there is no clear right to be violated by the implementation of DC2019-05-0008 as the same does not impose any price control nor dictate market prices to influence and regulate the oil industry,” Mr. Hernando wrote, citing the CA ruling. It further ruled that the reporting requirements, such as the breakdown of the costs of taxes, duties, and company profits, are legitimate and do not force the disclosure of proprietary information.

“They neither mandate, fix, nor set restrictions on the prices for such petroleum products. They simply require oil companies to give notice and submit reports to the DoE, which is authorized under Republic Act No. 8479,” it said.

“After all, the law for the deregulation of the downstream oil industry was not created to protect these oil companies; it is, first and foremost, made for the sake and benefit of the public,” it added. — Chloe Mari A. Hufana