Thursday, July 24, 2008 Editorials: Probe on oil firms
WHILE worries that the oil price issue would be politicized are understandable, it is still good that some lawmakers are heading calls for government to look into the pricing scheme used by oil companies.
In fairness to the oil firms, however, while the report that two giant oil firms have earned some P70 billion since the oil deregulation law was implemented is attention-grabbing, it is not proof as yet of shenanigans.
For example, since no figure was made available on the earning of the oil firms before the onset of oil industry deregulation, one cannot be too sure that profits rose under the new setup.
Only through a deeper investigation can there be certainty about the speculations.
Suspicions
Congressional probes may not be popular considering the results of similar activities before, but by just shedding light on the pricing mechanism the initiative of lawmakers in this direction can be justified.
The restiveness among sectors directly affected by the series of oil price increases is already perceptible and this is partly fueled by suspicions that oil firms are making a killing out of the difficulties experienced by the people.
Where before the Arroyo administration was the sole target of condemnation, protest actions have increasingly been zeroing in on the oil firms precisely because of these suspicions.
Oil firms should therefore welcome the investigation started by a Department of Justice-Department of Energy team and the one that is planned by the House of Representatives if only to be able to present their side.
Tall task
The challenge for probers, however, whether this is done by the executive department or by legislators, is to ensure that the investigations are deep, all-sided and therefore believable.
These should also result in something substantial, like the lowering of oil prices, if irregularities in pricing are found, the amendment of the oil deregulation law, if needed, and the punishment of profiteers, if there are any.
That may be a tall task but that is what is needed in the light of the volatile situation the country is in now.
