DOJ-DOE STARTS PROBE INTO POSSIBLE VIOLATION OF THE DIRECTIVE TO STABILIZE OIL PRICE INCREASES DRING STATE OF CALAMITY

12 November 2009

The DOJ-DOE Task Force ordered two oil firms to appear and explain regarding their action to increase the prices of their products amid the call of the President to prevent unreasonable price increases.

The executives of Seaoil and Shell Philippines were asked to appear before the Task Force on October 19, 2009 at 3 p.m.

The two firms were to submit relevant documents pertaining to their oil inventory from September 14, 11, 18, 25, 26 and 27, 2009 and October 2, 9 and 12, 2009 as well as sales of their products sold to dealers in the areas affected by the price adjustments; cash disbursement books for the transportation, refining and storage; purchase orders for transportation; delivery receipts; sales invoices; logs and records; computation of cost incurred and several other papers and documents related to the processing of oil and its end products.

The President previously ordered DOE Secretary Reyes and the DOJ to exercise relevant powers under R.A. No. 8479 to respond to the emergency situation brought by two typhoons that hit Metro Manila and other provinces in Luzon.

R.A. No. 8479 allows the DOJ-DOE Task Force created to conduct inquiry into predatory and unreasonable pricing, cartelization, among others, which oil industry players may resort to.

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