THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
'04 
CIE6 16 P 3 :L!l 
First Regular Session 
1 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 16, Section 9, provides: 
The State shall protect consumersfrom trude malpractices 
and fiom 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. 
MI FM 
D E ~ N S O R  
SANTIA~O 
G f  


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
IMPOSING CIVIL. PENALTIES ON UNREASONABLE PRICE INCREASES FOR CRUDE 
OIL, RESIDUAL. FUEL OIL, OR REFINED PETROLEUM PRODUCTS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
asseni bled: 
SECTION 1. Short Title. - This Act shall be known as the “Fuel Pricing Fairness Act 
of 2004 ’’ 
SECTION 2. Declaration of Policy. - 
It is the policy of the State to protect consumers 
from trade malpractices and from substandard or hazardous products. 
SECTION 3. Definition of Terms. - 
As used in this Act, the following terms shall mean: 
(1) “Energy-producing company” - a person engaged in: 
(a) ownership or control of mineral fuel resources or non-mineral energy 
resources; 
(b) exploration for, or development of, mineral fuel resources; 
(c) extraction of mineral fuel or non-mineral energy resources; 
(d) refining, milling, or otherwise processing mineral fuel or non-mineral energy 
resources; 
(e) storage of mineral fuel or non-mineral energy resources by any means 
whatever; or 
(h) wholesale or retail distribution or mineral fuels, non-mineral energy resources 
or electrical energy; 


(2) “Unreasonable price increase” - 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. 
(3) “Energy industry” - all energy-producing companies. 
(4) “Crude Oil” - 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. 
(5) “Residual Fuel Oil” - a liquid or semi-liquid, high-boiling fraction of residue from the 
distillation of petroleum which is used as a fuel. 
(6) “Refined Petroleum Products” - 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). 
(7) “LPG - Liquefied Petroleum Gas. 
(8) “DOE” - Department of Energy. 
(9) “DOE Secretary’’ - Secretary of the Department of Energy. 
(10) “DTI” - Department of Trade and Industry. 
(1 1) “DTI Secretary” - Secretary of the Department of Trade and Industry. 
SECTION 4. Civil penulty for unreasonable price increase for crude oil, residual fuel oil, 
or uejinedpetroleirm products. - 
(1) 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 - 
(a) apply to all crude oil, residual fuel oil, and refined petroleum products that are 
sold and used as energy fuel in the Philippines; 
(b) prohibit any unreasonable price increase for such products by an energy- 
producing company; and 


(c) impose a civil penalty of not less than One Million Pesos (Pl,OOO,OOO.O0) but 
not more than Ten Million Pesos (P10,000,000.00) for each unreasonable price 
increase. 
(2) 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. 
SECTION 5. Separabilitp Clause. - 
If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 6. Repealing Clause. - 
Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rnle or regulation contrary to, or inconsistent 
with, the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 7. Eflectectivity Clause. - 
This Act shall take effect fifteen (15) days aRer its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
h a ,  jpa