Laban Konsyumer Inc. has filed a complaint against the 15 oil companies for alleged price fixing, collusion and cartel with the Philippine Competition Commission in violation of the Oil Deregulation Law.
LKI president Victorio Dimagiba also filed a complaint against the Department of Energy for allegedly abetting and facilitating the commission of price fixing, collusion and cartel by the other oil companies in adopting and continuing the implementation of a pricing formula that violates market competition and the law.
“I am filing a complaint against the oil companies which operate petroleum service stations and sell petroleum products of price fixing, collusion and cartel in violation of law by entering into an agreement substantially preventing and restricting competition in the retail of petroleum products,” Dimagiba said.
LKI filed a case against Chevron Philippines, Petron Corp., PTT Philippines, Pilipinas Shell Petroleum Corp., Total Philippines, Seaoil Philippines, Phoenix Petroleum Philippines, Jetti Petroleum, Eastern Petroleum Corp., Filpride Energy Corp., Unioil Petroleum Philippines, Clean Fuels Philippines, City Oil Philippines, TWA Inc. and Petro Gazz.
The group cited Section 11 of the Oil Deregulation Law which prohibits cartelization,which means any agreement or concerted action by refiners, importers and/or dealers to “fix prices, restrict outputs or divide markets, either by products or by areas.”
LKI said the oil firms have individually sent weekly notices to the DOE of the adjusted prices of gasoline, diesel and kerosene, with the same amount of effectivity and implemented on the same date.
The group said they have asked the DOE to investigate the matter several times but no action were taken.
“I had exhausted administrative remedy with the respondent DOE but no action had been taken to date. I believe that price fixing, collusion and cartel is being abetted and facilitated by a pricing formula which was agreed and entered upon by all respondents,” LKI said.
It said the oil firms adjust prices without relating the price setting as to whether the oil company is an oil refiner or an importer and other costs.
“The pricing formula did not consider in the computation the corresponding explanation and supporting documents on the cause/s or reason/s of the movement of the individual price adjustments, to include, among others, the international content, taxes and duties, biofuel cost and oil company take components,” the LKI said.
