Committee tasked to review oil prices meets with people’s organizations

Committee tasked to review oil prices meets with people’s organizations

While progressive organizations welcomed the review, they expressed reservations about the independence of the committee, the quality of, and its hesitation to share, the data it would be getting, and the limits that it imposes on itself.
By MARYA SALAMAT
Bulatlat.com
MANILA – A committee tasked to review oil prices and oil companies’ profits held this Monday a public consultation with leaders of peoples’ organizations and non-government institutions at the Department of Energy in Bonifacio Global City. Dubbed as an Independent Review Committee on oil prices and profits, led by Dr. Benjamin F. Diokno, the committee delineated their scope as “a study committee and not as an investigative body.”

The committee declined to differentiate itself from the Task Force composed of the justice and energy departments set up last year by President Benigno “Noynoy” C. Aquino, to go after the oil companies’ alleged overpricing. Until today, that task force has not yet released the results of its investigation, if this had pushed through.

Diokno told the media in a press briefing minutes before the public consultation that if charges were to be filed, it would be the decision or call of the Department of Energy (DOE) and Department of Justice (DOJ), and not of the study committee. “It is up to DOE to discuss the result of the study,” Diokno said.

Victor Abola and Benjamin Diokno of the review committee (Photo by Marya Salamat / bulatlat.com)

He explained that they are “not even going to recommend this or that,” instead, he said in Filipino that what they will study is if there were evidences or not of, say, overpricing, or of “excessive” profit taking.

Asked to explain the parameters they would use to gauge if profits are “excessive,” Diokno replied in Filipino that when investments are in “riskier” businesses (such as in oil), a higher rate of return may be allowed. If the profit rates of a company are well within the government’s prescribed rate of return on investment in the said industry, Diokno said “it is not anymore excessive.”

The study committee has a six-month time frame. It began late last January and it would submit the results of its study by July this year to the energy department, said Diokno. Their Monday consultation with leaders of peoples’ organizations is said to be their second public consultation; last week they reportedly consulted with the transport sector..... MORE

Source:  Bulatlat.com

URL: http://bulatlat.com/main/2012/04/03/committee-tasked-to-review-oil-prices-meets-with-people%E2%80%99s-organizations/