Oil companies are being questioned by lawmakers over the rapid increase in pump prices despite selling fuel stocks that were reportedly purchased at lower prices before the Middle East conflict.

Concerns over possible profiteering surfaced after oil companies implemented another round of fuel price hikes on Tuesday.

The issue arose as the House Committee on Ways and Means tackled bills seeking to authorize President Ferdinand R. Marcos Jr. to temporarily suspend excise taxes on petroleum products to cushion Filipino consumers from surging global oil prices triggered by tensions in the Middle East.

Speaker Faustino “Bojie” G. Dy III and House Majority Leader Ferdinand Alexander “Sandro” A. Marcos of Ilocos Norte on Monday filed House Bill (HB) No. 8292, which seeks to authorize the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies.

The proposed measure seeks to amend the National Internal Revenue Code to give the President authority, upon the recommendation of the Secretary of Finance and in coordination with the Secretary of Energy, to temporarily suspend or reduce excise taxes on fuel when extraordinary conditions drive global oil prices higher.

Marikina Rep. Miro Quimbo, chair of the panel, said the situation highlights how the country’s deregulated oil industry operates, where companies base pump prices on international benchmarks rather than on the cost of their existing inventories — an arrangement he said may need to be revisited in light of the current crisis.

“It’s an entirely deregulated industry,” Quimbo said, explaining that oil firms follow movements in the Mean of Platts Singapore (MOPS), a regional pricing benchmark used across Asia, allowing them to raise prices even if their current stocks were purchased at lower prices.

He noted that under the deregulated system, companies can sell fuel at higher market prices once global benchmarks rise, even if their supply was acquired earlier at cheaper costs.

“Walang limits eh. Walang nagre-regulate sa kanilang income because it’s a free market,” Quimbo lamented.

Quimbo, however, stressed that lawmakers want to ensure that any suspension of fuel excise taxes would directly benefit consumers.

“Basically, ang concern natin dito is if we pass a law empowering the President to suspend the excise tax, and yet it does not inure to the benefit of the regular consumer — na hindi nila mararamdaman ‘yung epekto — mababalewala itong pinaghihirapan ng ating gobyerno na sakripisyo tayo sa revenue,” Quimbo said.

“Pero ang thinking natin is imbes na kolektahin natin ‘yung buwis, parang ibinabalik natin ito sa taongbayan ngayon para makatulong sa kanila sa napaka-extraordinary na panahon na ito,” he added.

Committee vice chair and Manila Rep. Rolando Valeriano said the latest price hikes appear premature since the fuel currently being sold may still be part of inventories purchased before geopolitical tensions pushed global prices higher.

He noted that government officials earlier confirmed the country still has about a month’s worth of fuel supply.

Valeriano warned that applying higher prices to existing inventories could generate massive profits for oil companies.

“So kung titignan po ninyo, for every depot na may laman na halos 5 million liters, ang kada depot po ay kikita ng P100 million kada oil company na mayroong stock na 5 million liters,” he said.

“At sa 10 million liters po, that is already P200 million ang kikitain nila dahil dito sa sitwasyon natin na mayroong gera,” Valeriano added.

The concerns emerged as lawmakers worked to consolidate several measures authorizing the President, upon the recommendation of economic managers, to temporarily suspend fuel excise taxes during extraordinary spikes in global oil prices.

Quimbo said the hearings have also prompted lawmakers to consider reviewing the country’s oil deregulation policy.

“So in short, it’s really a very deregulated industry. That’s why pricing is very difficult to dictate upon. At iyon ang kabahagi sa pag-aaral natin,” he said.

“So I think it’s something that really needs attention — na i-revisit natin ang oil deregulation law,” Quimbo added.