BAGUIO CITY – Baguio’s Lone District Representative Mauricio G. Domogan filed a bill seeking to amend pertinent provisions of Republic Act (RA) 7581 or the Price Act as amended by RA 10623 to include gasoline, diesel and other petroleum products as basic necessities and for other purposes.
Under House Bill (HB) 6634 authored by Rep. Domogan, Section 3(1) of RA 7581 as amended by RA 10623 shall read ‘for purposes of this Act, the term basic necessities are goods vital to the needs of consumers for their sustenance and existence in times of any of the cases provided under Section 6 or 7 of this Act such as, but not limited to, rice, corn, root crops, bread; fresh, dried or canned fish and other marine products; fresh pork, beef and poultry meat, fresh eggs; potable water in bottles and containers; fresh and processed milk; fresh vegetables and fruits; locally manufactured instant noodles; coffee; sugar; cooking oil; salt; laundry soap and detergents; firewood; charcoal; household liquified petroleum gas (LPG; kerosene, gasoline, diesel and other petroleum products; candles; drugs classified as essential by the Department of Health and such other goods as may be included under Section 4 of this Act.’
Further, there shall be prima facie evidence of profiteering whenever a basic necessity or prime commodity being sold has no price tag; is misrepresented as to its weight or measurement; is adulterated or diluted; or whenever a person raises the price of any basic necessity or prime commodity he sells or offers or sell to the general public by more than 10 percent of its price in the immediately preceding month; provided that, in the case of agricultural crops, fresh fish, fresh marine products and other season products covered by the law and as determined by the implementing agency, the prima facie provisions shall not apply.
The bill stated that any profits derived from price increases must be reasonable, fair, and not excessive. For purposes of the said law, reasonable profit shall consider prevailing market conditions, acquisition cost, distribution cost, and other justifiable operational expenses.
Domogan also proposed that unless sooner lifted by the President, price control of basic necessities shall remain effective for the duration of the condition that brought it about, but not for more than 60 days, provided that, in the case of basic necessities that are wholly imported and deregulated under existing laws such as, but not limited to household LPG, gasoline, kerosene, diesel and other petroleum products, price control shall remain effective for more than 15 days, taking into consideration the current inventory and supply levels.
He claimed that within 60 days from the effectivity of the proposed measure, the Department of Trade and Industry (DTI), in coordination with the Department of Energy (DOE), shall formulate and promulgate the necessary rules and regulations for its effective implementation.
Domogan pointed out that the measure does not impose price control as a default but it simply classified petroleum fuels as basic necessities under the Price Act, thereby empowering the government to monitor or regulate their prices only when warranted, as such during emergencies, supply disruptions or instances of price manipulation.
Moreover, he argued that the measure will not only bring petroleum products under the regulatory ambit of the Price Act that affirms that any profits derived from price increases must be reasonable, fair, and not excessive which is consistent with long standing consumer protection doctrines and ensures balance between free enterprise and public welfare.
“By including gasoline, diesel, and other petroleum products as basic necessities under the Price Act, the government will be empowered to monitor and regulate prices in cases of market abuses, emergencies, or unreasonable increases; prevent profiteering, cartelization, and price manipulation; address unjustified regional price disparities, and ensure price transparency and protect consumers, especially in highland, remote or less competitive areas,” Domogan stressed.
He explained that in recent years, there has been persistent and substantial disparity in retail petroleum prices among towns, cities and provinces even within the same region, price differentials sometimes reach P10 to P15 per liter creating an undue burden on consumers, farmers, transport operators and small businesses.
Domogan cited that a clear illustration of the said problem is the price gap of petroleum products in Baguio and the lowlands where Baguio pump prices are much higher than those in Rosario and San Fernando City, La Union by roughly P10 to P15 per liter, despite the fact that the DOE estimated the cost of transporting fuel between Rosario, La Union and Baguio City in an amount of only P0.50 per liter which underscores the vulnerability of consumers to exorbitant profit.
The veteran lawmaker emphasized that fuel prices influence food prices, logistics, public transportation, agriculture, manufacturing and household energy use.
Subsequently, Domogan stipulated that unregulated and unexplained profit and price disparities erode purchasing power, undermine livelihood sectors and impose disproportionate burdens on consumers. HENT