Gov't oil cartel watchdog, toothless, non-existent -- SATUR : QC IMC

"After six years of full deregulation and more than 60 oil price hikes later, the public has yet to hear from this oil cartel watchdog, that is, if it ever existed at all," Ocampo said. "Count this as another one of deregulation's glaring failures to protect consumer interest."

Ocampo was referring to the joint taskforce of the Department of Energy and Department of Justice created under Republic Act 8479 (the Downstream Oil Industry Deregulation Law), which took effect in February 1998. The task force is mandated to investigate and prosecute cases of predatory pricing, anti-competitive behavior and unreasonable oil price increases. "This task force reportedly convened a few times in 1998, but nothing was heard from it ever since."

"Apparently, taxpayers are subsidizing a non-existent superbody whose main duty is to protect the welfare of consumers and public transport workers from abuses by the Big Three and the new industry players," he stressed.

Ocampo added that the public has yet to see the taskforce summon a single oil company despite their cartel-like behavior in setting pump prices, as well as recent reports showing that prevailing pump prices have been bloated. He cited a recent study by IBON Foundation showing that pump prices are possibly overpriced by at least 90 centavos per liter. To estimate overpricing, the private research firm uses the Automatic Pricing Mechanism (APM) formula, which was the industry standard during the five-month transition period prior to full deregulation which took effect in July 1998.

"The regulatory function of the energy department has been reduced to simply monitoring prices in gas stations in Metro Manila, which are then posted on its website. But what's the use of this on-line price list to an ordinary jeepney driver who does not even have an idea what the internet is?"

TRANSPORT STRIKE IS JUSTIFIED

Bayan Muna also expressed support for the nationwide transport strike set today, saying that public transport operators and drivers had "enough valid reasons" for demanding a provisionary increase of P1 in basic fares.

"Diesel prices have increased by 43 percent from P12.62 per liter two years ago to P18 per liter today, while the peso's real value has eroded by almost half since the first oil deregulation law took effect in 1996," said the party-list solon.

"In the last four years, however, jeepney drivers have not been allowed to increase their fares because this would be politically disastrous for the government." In contrast, he said that during the same period, he government has allowed giant utility firms to recover any losses and maintain their high profit margins by gradually removing state regulations in setting the prices of oil, electricity and water.

Finally, Ocampo pressed for a wage increase for workers since they would shoulder the heaviest burden in the event of a fare hike. He also called for the reimposition of price controls on local pump prices of petroleum and the immediate repeal of the oil deregulation law. #