THE review of the books of oil companies will soon start now that the final members of the Department of Energy’s Independent Review Committee have been chosen.
The selection of the IRC members was welcomed by Independent Philippine Petroleum Companies Association chair Fernando Martinez but said he expects “nothing shocking” to come out of the review results.
Martinez said he has no problem with the members of the committee because they are very professional and intellectual people.
The IRC was initiated by the DoE to address the issue of alleged excessive profits of oil companies in the midst of volatile local fuel pricing.
Dr. Benjamin Diokno, an economist, will lead the committee which will be composed of representatives from the following sector—Academe: Dr. Rene Azurin; Business Community: Dr. Jesus Estanislao; Consumer Group: Raul Concepcion; Economists: Dr. Victor Abola; Accountants: Dexter Ortega and Public Transport: lawyer Vigor Mendoza.
Martinez said the group will be reviewing the same set of data as with the past independent reviews.
“Like the first two studies conducted on fuel pricing, they (IRC) will come to the conclusion that there is no overpricing (of domestic fuel products). I expect no deviation from the past findings,” the IPPCA chair said.
The DoE on Wednesday clarified that the focus of the IRC will determine whether or not oil firms are jacking up their profits through overpricing.
Martinez explained that with the deregulated environment, local oil firms now only gain an average profit of four to eight percent, down from 12 percent when the oil industry was still regulated. The Downstream Oil Deregulation Law (Republic Act 8479) was passed in 1998.
Last October, major oil players comprising the Philippine Institute of Petroleum voluntarily opened their books of account for government scrutiny in response to allegations of fuel overpricing.
Speaking on behalf of independent players, Martinez said, “We see no further need for a review since the results will be the same.” Alvin Murcia
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