Gatchalian warns oil firms vs profiteering amid Middle East crisis

Senator Sherwin Gatchalian on Sunday urged the Department of Energy (DOE) to intensify monitoring of oil companies and fuel retailers amid fears of profiteering following price shocks linked to tensions in the Middle East.

Gatchalian raised concerns that some fuel retailers appear to be increasing pump prices even before higher costs from the global market take effect.

“Kaka-announce pa lang ng price increase sa world market pero ang ilang retailers ay nagtataas na agad ng presyo (Global price increases have only just been announced, yet some retailers are already raising their prices). This is profiteering,” the senator said.

He stressed that retailers should not immediately raise prices since their current fuel inventories were purchased at lower costs.

“They cannot raise prices right away because the stocks they hold were bought at a lower price. They should sell at a reasonable price,” said Gatchalian, vice chair of the Senate Committee on Energy.

The lawmaker made the remarks after Energy Director Rino Abad noted that the government has limited control over fuel pricing due to the Downstream Oil Industry Deregulation Act of 1998.But Gatchalian insisted authorities must still act to protect consumers.

“I won’t take ‘no’ for an answer because consumers are being abused,” he said.

The DOE earlier said oil companies typically maintain around 50 days of fuel inventory, suggesting there should be no immediate justification for sudden pump price hikes.

Data from Gatchalian’s office showed sharp increases in fuel prices from January to March 4, with gasoline rising 13.7% from P55 to P62 per liter. Diesel prices surged 41.4% from P54 to P76 per liter, while kerosene jumped 43% from P79 to P114 per liter.

Gatchalian warned that authorities must remain vigilant against profiteering as global tensions threaten to further disrupt energy markets and drive up fuel costs for consumers.