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Republic of the Philippines HOUSE OF REPRESENTATIVES Quezon City FIFTEENTH CONGRESS First Regular Session HOUSE RESOLUTION No.

1170 _______________________________________________________________________________ Introduced by Reps. TEDDY A. CASIO and NERI JAVIER COLMENARES

RESOLUTION DIRECTING THE HOUSE COMMITTEE ON ENERGY TO CONDUCT AN URGENT INQUIRY, IN EXERCISE OF ITS OVERSIGHT POWERS, ON THE UNUSUALLY HIGH PRICES OF FUEL PRODUCTS IMPOSED BY OIL COMPANIES IN NEGROS OCCIDENTAL AS WELL AS OTHER CITIES AND PROVINCES OUTSIDE METRO MANILA WHEREAS, there have been huge jumps in fuel prices all over the country recently, the basis of which remained obscure due to the Oil Deregulation Law; WHEREAS, compounding such hardship borne by the people is the price of fuel that is excessively higher in cities and provinces outside Metro Manila; WHEREAS, complaints from transport groups, industries and even local government officials have reached our offices regarding fuel prices in Negros Occidental that are higher by at least P5.00 compared to prices in Metro Manila, a report which the Department of Energy (DOE) Undersecretary Jose Layug himself confirmed after an inspection among gasoline stations in Bacolod City on February 17, 2011; WHEREAS, small gas station owners in Bacolod City, for example, confess that their pump prices are dictated by the big oil companies or their distributors though daily text messages and that any gas station owner who refuses to follow the imposed price is threatened with the termination of contract for breach thereof; WHEREAS, explanations offered by the oil companies and the DOE itself - that high prices are due to lack of competition in the area and the high cost of transportation - appear inadequate in explaining such huge discrepancies in prices, considering that no similar system seems to exist as far as other commodities are concerned; WHEREAS, despite such repeated complaints by consumers, the real reason for these huge discrepancies between Metro Manila fuel prices and practically all provinces especially in Baguio City, Bacolod City, Iloilo City, Cebu City, Cagayan de Oro City and Cotabato City remain a mystery even to the DOE, as evidenced by statements of Usec. Layug before the Committee on Energy and in media interviews that they are still looking into the matter;

WHEREAS, there are strong suspicions that in effect, provincial consumers are subsidizing the cost of fuel in Metro Manila in order to minimize the public outcry against high prices, which is usually strongest in the National Capital Region. There are also suspicions that retails are abusing their power to determine prices under the pricing regime set by the Oil Deregulation Law; WHEREAS, the people from various provinces deserve a full and transparent explanation from the oil companies as to the formula in computing higher fuel prices in their area. Thus, there is a need for the House of Representatives to exercise its oversight powers in pursuit of such an explanation; WHEREAS, should there be a finding that the prices imposed are without basis and therefore unjustly excessive, these oil companies including their distributors should be made accountable for such a criminal act and that these excessive impositions be immediately stopped; NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the House of Representatives direct its Committee on Energy to conduct an urgent inquiry, in exercise of its oversight powers, on the unusually high prices of fuel products imposed by oil companies in Negros Occidental as well as other cities and provinces outside Metro Manila.

Adopted,

TEDDY A. CASIO Bayan Muna Party-list

NERI JAVIER COLMENARES Bayan Muna Partylist

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