State of Emergency

DAGUPAN CITY — The order was ready, why was it not implemented?

President Gloria Macapagal-Arroyo has directed Energy Secretary Angelo Reyes to go after oil companies that might resort to what she called “predatory pricing” and take advantage of consumers amid the state of calamity.

But Reyes appeared reluctant to do so when reminded of the order by Ms Arroyo at Tuesday’s Cabinet and National Disaster Coordinating Council meeting held at the Dagupan West Central School here.

Reacting to reports of overpriced cooking gas, the President turned to Reyes and said in Filipino: “Angie, you have regulatory powers. You already have a memo.”

She was referring to an Oct. 12 memorandum she issued to “prevent predatory pricing, unreasonable pricing, cartelization, among others, which the oil industry players may resort to.”

A separate memo issued on the same day directed Reyes and Justice Secretary Agnes Devanadera to use Republic Act No. 8479 or the Downstream Oil Deregulation Act of 1996 to “prevent unreasonable increases in prices, especially during a state of calamity.”

But Reyes reminded his boss that under RA 8479, “we cannot set any price ceiling on petroleum products.”

“But you can check on their operations to see whether their prices are justified,” she retorted. “You have to exercise your visitorial powers. Open their books.”

While Reyes appeared reluctant, Devanadera was more aggressive about going after erring oil companies.

Devanadera cited a provision in the law which states: “In times of national emergency when the public interest so requires, the (Department of Energy) may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any person or entity engaged in the industry.” Christian V. Esguerra