Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Philippines

es
REGE

DATE
SIXTEENTH CONGRESS

First Regular Session

ve.
House sitno,__ 2474

INTRODUCED BY REP. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

The Constitution, Article XVI, provides:

Section 9. The State shall protect consumers from trade malpractices and from
‘substandard or hazardous products. (Italics supplied)

From the vehicles we drive to the equipment we use, our society relies on
gasoline to fuel our lives. The high demand for this commodity and recent fluctuations in
its price warrant a closer look at the issue of predatory pricing,

This bill seeks to impose civil penalties on unreasonable price increases for
crude oil, residual fuel oil, or refined petroleum products.

——

JARCELINO “MARCY” R. TEODORO
Representative
4st District, City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

House BILLNo._ 247-4

INTRODUCED BY REP. MARCELINO “MARCY” R. TEODORO.

AN ACT
IMPOSING CIVIL PENALTIES ON UNREASONABLE PRICE INCREASES FOR
CRUDE OIL, RESIDUAL FUEL OIL, OR REFINED PETROLEUM PRODUCTS,

Be jit enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Fuel Pricing Fairness Act.”

SEC. 2. Declaration of Policy. — \t is the policy of the State to protect consumers from
trade malpractices and from substandard or hazardous products

SEC. 3. Definition of Terms. - For the purposes of this Act, the term:
a) "Energy-producing company” means a person engaged in

1) Ownership or control of mineral fuel resources or non-mineral energy
resources;

2) Exploration for, or development of, mineral fuel resources;

3) Extraction of mineral fuel or non-mineral energy resources;

4) Refining, milling, or otherwise processing mineral fuel or non-mineral
energy resources:

5) Storage of mineral fuel or non-mineral energy resources by any means
whatever, or

6) Wholesale or retail distribution or mineral fuels, non-mineral energy
resources or electrical energy

b) "Unreasonable price increase" means any price increase that exceeds any
concurrent increase in the production or operation cost of the energy-producing
company that are directly related to the products being sold

©) "Energy industry" means all energy-producing companies.

d) “Crude Oil" means a naturally-occurring substance found trapped in certain rocks
below the earth's crust. It is a dark, sticky liquid which, scientifically speaking, is
classed as a hydrocarbon. It is highly flammable that can be burned to create
energy

e) “Residual Fuel Oil” means a liquid or semi-liquid, high-boiling fraction of residue
from the distillation of petroleum which is used as a fuel.

f) "Refined Petroleum Products" means products that are derived from crude oils
through processes such as catalytic cracking and fractional distillation. These
products have physical and chemical characteristics that differ according to the
type of crude oil and subsequent refining processes. These include gasoline,
kerosene, LPG, No. 2 Fuel Oil, No. 4 Fuel Oil, No. 5 Fuel Oil (Bunker B), and
No.6 Fuel Oil (Bunker C).


g) "LPG" means Liquefied Petroleum Gas.
h) "DOE" means Department of Energy.
i) "DTI" means Department of Trade and Industry.

SEC. 4. Civil Penalty for Unreasonable Price Increase for Crude Oil, Residual Fuel
Oil, or Refined Petroleum Products. —

a) In General. - Not later than three (3) months after the date of enactment of this
Act, the Department of Energy Secretary, in coordination with the Department of
Trade and Industry Secretary, shall issue regulations that —

1) Apply to all crude oil, residual fuel oil, and refined petroleum products that
are sold and used as energy fuel in the Philippines;

2) Prohibit any unreasonable price increase for such products by an energy-
producing company; and

3) Impose a civil penalty of not less than One Million Pesos (P1,000,000.00)
but not more than Ten Million Pesos (P10,000,000.00) for each
unreasonable price increase.

b) Determination of Unreasonable Price Increase. - The DOE, in coordination with
the DTI, shall determine at least annually whether any energy-producing
company has implemented an unreasonable price increase in violation of
regulations issued under paragraph (1) of this Section.

SEC. 5. Separability Clause. - Should any provision of this Act be declared invalid or
unconstitutional, the validity or constitutionality |of the other provisions shall not be
affected thereby

SEC. 6. Repealing Clause. — All laws, decrees, executive orders, rules and regulations,
and other issuances or parts thereof which are inconsistent with the provisions of this
Act are hereby repealed, amended or modified accordingly.

SEC. 7. Effectivity. — This Act shall take effect fifteen (15) days after its publication in at
least two (2) newspapers of general circulation.

Approved,