DOJ official pledges to speed up resolution of complaint vs. Big 3
Friday, July 31, 2009
CALLING it a matter of national interest, an official of the Department of Justice (DOJ) yesterday vowed to speed up the resolution of a complaint that oil firms are overcharging consumers in Cebu.
DOJ Undersecretary Jose Vicente Salazar also assured a special task force will file charges against those found liable of violating the Oil Deregulation Act, if any, but will need to gather additional data.
“Cebu is too important for us not to decide.
We will do this expeditiously. This has been taken up in the Cabinet meeting so we know how important it is,” Salazar said.
Preliminary hearing
The joint Department of Energy-Department of Justice Task Force on Oil Deregulation, which Salazar heads, conducted a preliminary hearing in Cebu yesterday of the complaint for overpricing of petroleum products filed by Cebu Gov. Gwendolyn Garcia against the three largest oil companies.
Business groups joined the governor last May when she sued the Pilipinas Shell Petroleum Corp., Petron Corp. and Chevron Corp. for alleged violations of Section 11 of Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998.
The law penalizes cartelization and predatory pricing of petroleum products.
In her opening statement, Garcia said the oil companies “have committed the offense of cartelization.” ...
...Being a businesswoman, Garcia said she knows that price is not determined by market forces alone.
Soul mates?
“It is strange that these competitors seem to be in harmony down to the last numerical digit. Are they really competitors or soul mates in the prices?” asked Garcia.
The governor said the issue also surfaced during a Cabinet meeting last May, where she assured President Arroyo she will face “such an unfair situation head-on.”
Prosecutor Yarte asked Garcia why she “singled out” the three oil companies in filing the case.
Pricing
She explained that the three oil companies have all the resources to manipulate fuel pricing, unlike smaller players in the industry...
...No further hearing of the case will be done in Cebu, said Salazar, since both parties agreed to just exchange their questions and answers in writing.
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DOJ official pledges to speed up resolution of complaint vs. Big 3 | Sun.Star Network Online