Bohol commercial oil dealers may find themselves facing the formidable competitor in government when the latter pursues the plan of putting up its own gas pumps and other oil facility here.  The SangguniangPanlalawigan (SP) on Friday did not hide its anger against the alleged unscrupulous petroleum commercial dealers in this city who are accused of controlling the petroleum prices, which are very much higher than other cities and provinces in the region and outside the region.  Provincial Board Member (BM) Tomas D. Abapo Jr. in his privilege speech during the provincial board regular session on Friday offered a bold move. “If we cannot lick them, why not join them.” He said that because LGUs cannot pass local laws that would be in conflict with the national law, “a better remedy would be to join them in the fight. If you cannot beat them, join them. After all, economic enterprise by LGUs is not prohibited especially if it is for the general welfare of the public.”

 Everyone in the session hall --- provincial board members Dr. Cesar Tomas Lopez, Atty. Dionisio D. Balite, Godofreda O. Tirol, Dr. Elpidio M. Jala, Madelone Y. Rengel, JovannaJumamoy, PCL representative Antonio Ouano, Brigido Z. Imboy, Atty. Benjie Arcamo, during the said regular session, not even Vice-Gov. Lim, did not raise an objection at Abapo'sidea of putting up gas pump stations and supply facilities. He said that while the purpose of the Oil Deregulation Law is to liberate and deregulate the downstream oil industry in order to ensure a truly competitive market under the regime of fair prices, adequate and continuous supply of environmentally clean and high-quality petroleum products. But this “has failed.”

 Failure

Abapo eloquently explained why the Oil Deregulation Law is a flop. He hastened to add: “The only problem here is its implementation. Local stakeholders are generally answerable to the executive department, the Department of Energy in this case for their reportorial requirements of their transactions. Hence, the lack of transparency in the local level like Bohol wherein we do not even have a sub-office of the DOE. This results to the inability of the LGUs and local consumers to determine as a matter of fact as to whether or not cartelization does exist although a host of circumstances evince otherwise.”  Granting that even the local petroleum players were to submit their report to the LGUs, “This can be easily concocted by them to defraud the public. They have the oil so they have the money; they have the money so they have the power. And when you have the power, the truth will be what you make it,” Abapo lamented. In Bohol, there are already the so-called “independent players” that sell similar higher oil prices with the “Big 3 --- Shell, Caltex and Petron” dealers unlike in other towns that their counterparts are selling much lower prices.

 Remedies

Abapo, who said that there are a lot of remedies of this perennial problem of unabated high oil prices here, has proposed for the provincial government to set up its own gas pump stations apparently to compete with the private commercial ones who unreasonably jack up their prices much higher than what is prevailing in other places in the region. He said that the repeal of the law, or nationalization of the oil industry are some of the measures that would solve the high petroleum prices. But this may not work, “after all, why should the oligarchs be left in control of the basic commodity such as petroleum which is so intertwined with the national development. But just like anything, this proposal is also double-edged.”  He recognized that “energy is an instrument reduction and social equity as it serves as an enabling factor to channel grassroots development with the delivery of much needed services to marginalized sectors of our society.”

Legal Bases

He said there are bases for his proposal. The provincial government, if willing to pursue his proposal, may enter into the fight competing with private and commercial players in oil industry.  Citing provisions of the law that did not prohibit local government units to go into economic venture based on the same law (Oil Deregulation Law), the provincial government is covered under section 3 of said law. “This act shall apply for all persons or entities engaged in any and all activities of the domestic downstream oil industry, as well as persons or companies directly importing refined petroleum products for their own use.”  He also cited Rule II, section 4 of DOE circular No. 98-03-004, also known as the Implementing Rules and Regulations (IRR) of Oil Deregulation Law that provides “any person may import or purchase any quantity or crude oil and petroleum products from foreign or domestic source, lease or own and operate refineries and other downstream oil facilities and market such as crude oil and petroleum products either in a generic name or his or its own trade name, or use the same for his or its own requirement. Provided, that such person shall comply with the notice, reportorial, quality, health, safety and environmental requirements as set forth in this IRR.”  Abapo, College of Law dean at Holy Name University, has also cited the Local Government Code of 1991, or R. A. 7160 as basis for his proposal. He said that every LGU shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare.

 Capital

Abapo said that to make this realized in the near future, the provincial government may appropriate for this purpose, if not, it may avail of the fund P300 million in setting up gas pumps as provided by the Philippine Amusement and Gaming Corporation (PAGCOR).  His proposal is now under study at the Provincial Legal Office and the Provincial Planning and Development Office.

 Gratitude

The veteran lawmaker expressed thanks to his colleagues in the legislative chamber particularly BM Godofreda Tirol for supporting his proposal that he hopes may soon solve prevailing high prices of oil products in the province.  It will be recalled that Tirol also brought to the attention of her colleagues in the board the concern on oil high prices even as she urged the public to support her call for a lower oil price.  She even went on to urge the public to put pressure and their sentiments against the lowering of the oil prices by using the social media.

 Snub

The scheduled meeting Friday of the SP's committee of the whole was literally snubbed by the key players/operators of the big three companies.  Except for George Lim, operator of one of the Caltex stations here, most operators did not show up.  Vice-Gov. Concepcion Lim, who authorizes to preside over the said meeting on oil high prices, asked an apology for the delay of the said meeting with the oil key players, who were represented only by their aides. But the invitee-representatives from other sectors such as the non-government organizations were in full force waiting just to attend the said meeting.  The committee-of-the-whole decided to postpone the said meeting until the next time. The said committee also identified other private oil operators to be invited the next time around. They are Ms. Evelyn Du of Petron; Mr. Leo Lim of Caltex; Mr. Iven Lim, whose father is the operator of Shell in Cortes town; and Mr. Ramon Abelardo of Petron area sales executive, according to SP secretaryBonifacioQuirog. (RVO)