Senator Erwin Tulfo calls for transparency on oil companies' costing

Senator Erwin Tulfo called for full transparency in the oil sector, insisting that petroleum companies disclose their actual cost structures rather than impose price increases solely as response to global market fluctuations.

Senator Tulfo made this urging as he co-authored Senate Bill No. 641, a measure designed to impose strict transparency within the Philippine Downstream Oil Industry.

Under the proposed law, the Department of Energy (DOE) will gain the authority to mandate oil companies to submit the actual cost components of their fuel prices. This requirement would be triggered whenever the average price of Dubai crude oil hits a specific threshold per barrel, based on the Mean of Platts Singapore.

“We must put an end to this seemingly taking advantage of external events to pass the burden to the consumers,” Tulfo said, emphasizing the need to protect the public from arbitrary price increases.

The Senator further noted that many citizens have raised concerns regarding premature hikes and suspicious market activities. “Many of our kababayans reach out to me asking why there are premature hikes, and there’s even this fishy scheme where some gas stations declare that they’re out of supply—as if waiting for the mega price hike before opening their doors again to consumers. This has to stop,” he added.

During a previous hearing of the Senate Committee on Ways and Means, the DOE revealed it had already issued notices to explain to gas stations reportedly abusing current Middle East tensions to jack up prices. However, the energy agency admitted that its actions remain limited under the existing Oil Deregulation Law.

To address these gaps, Tulfo expressed the need for a permanent solution through legislation. “We want to institutionalize an automatic trigger where oil companies will be mandated to provide a list of their actual costs. This is to ensure that Filipinos are well-informed on why they’re paying a certain amount for gas,” Sen. Erwin remarked.

Tulfo has a long-standing history of advocating for the repeal of the Oil Deregulation Law since his tenure in the House of Representatives. Currently, he is among the primary proponents shepherding the measure that grants the President the power to automatically suspend oil excise taxes amid the ongoing Middle East crisis.