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    Posted May 30, 2014 by

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    Phl oil companies urged to explain increases

    THE erratic spike in oil prices, putting the transport sector and the motoring public at a disadvantage, has prompted a lawmaker to call for the disclosure of operations and calculations of oil prices by the oil companies in the Philippines.
    Rep. Rufus Rodriguez of Cagayan de Oro City said the way these oil companies peg the prices of gas and diesel is very unclear to the public because they do not explain how they arrive at a price per liter.
    Rodriguez filed House Bill 4193, which mandates oil companies in the country to disclose to the public a detailed report of their operations and a comprehensive calculation of how they arrive at the price of gas and diesel per liter.
    Under the bill, oil companies shall submit to the Department of Energy (DOE) and disclose to the public a very detailed and comprehensive report on their operations on a monthly basis.
    The said report shall include, but not limited to, the amount of oil they import per month and at what prices, the amount of oil they sold, their revenue and expenses, their net income, and all other pertinent data as may be required by the DOE.
    Likewise, the bill requires oil companies to submit to the DOE and report to the public how they come up with the price of gas and diesel per liter.
    "They are required to show a detailed calculation, including how much they earn per liter, to the public," Rodriguez said.
    At present, oil companies are only required to inform the DOE of any impending adjustment in their prices hours before the implementation without disclosing their inventory levels.
    "This is very convenient for these oil companies because they could sell oil that they purchased at lower prices at current price and make a killing at the expense of the consuming public," Rodriguez said.
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