Oil majors’ cartel? PCC sets probe

The Department of Energy (DoE) has sought the help of the Philippine Competition Commission (PCC) to investigate possible unfair practices by oil companies following recent simultaneous fuel price increases.

Energy Secretary Sharon Garin said the DoE is prepared to submit data to support the inquiry, as concerns grow over the uniformity of recent price adjustments.

“I think the issue is whether they are talking among themselves about oil price hikes. That is a behavior that should be investigated,” Garin said in a press briefing in Malacañang.

“We have already spoken to the PCC to check if there is anti-competitive behavior among them,” she added.

Fuel companies in the Philippines typically announce price adjustments every Tuesday. Garin said the system was designed to spread out increases and avoid steep monthly price spikes.

Brow-raising trends

However, Garin noted that recent price trends raised eyebrows not only because announcements were made simultaneously, but the amounts were identical across the oil firms.

“As observed in Congress, it seems they move together — not only in timing but also in how much they increase,” she said.

Garin said the DoE was open to revisiting the current pricing system and welcomed legislative guidance to improve market transparency and fairness.

“I think it’s time to revisit this, and we welcome any review of the system so we can improve it. We also need guidance from legislators on possible laws that could help strengthen the system,” she said.

Calls for an investigation have also come from lawmakers.

Marikina Rep. Miro Quimbo, who chairs the House Committee on Ways and Means, urged both the PCC and the Energy Regulatory Commission to look into a potential collusion among oil companies.

The push for scrutiny intensified after Arsenio Balisacan, secretary of the Department of Economy, Planning and Development, expressed concern that regulators may not be fully exercising their authority to ensure fair market behavior.