( 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
, Second Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
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IMPOSING CIVIL PENALTIES ON UNREASONABLE PRICE INCREASES rOR CRUDE 
OIL, RESIDUAL FUEL OIL, AND REFINED PETROLEUM PRODUCTS 
EXPLANATORY NOTE 
The Constitution provides: 
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Art. II, Section 5. The maintenance of peace and order, the protection of 
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life, liberty, and property, and the promotion of the general welfare are essential 
for the enjoyment by all the people ofthe blessings of democracy. 
Art. II, Section 9. The State shall promote a just and dynamic social order 
that will ensure the prosperity and independence of the nation and free the people 
from poverty through policies that provide adequate social services, promote full 
employment, a rising standard of living, and an improved quality of life for all. 
Art. II, Section 19. The State shall develop a self-reliant and independent 
national economy effectively controlled by Filipinos. 
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 frequent fluctuations in its price warrant a 
doser look at the issue of predatory pricing. 
This bill seeks to impose civil penalties on unreasonable price increases for crude oil, 
residual fuel oil, and refined petroleum products.' 
~~ )~ 
.MIRIAM DEF~=SANTLiJ(; 
qYr 
.,' This bill was originally filed during the Thirteenth Congress. First Regular Session. 


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,SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
!~thrt \,II~. ~",ria,~ 
OF THE PHILIPPINES 
) 
,Second Regular Session 
) 
'14 
JUl -1 P2 :\8 
SENATE 
S. No. 2295 
Introduced by Senator Miriam Defensor Santiago 
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Be it enacted by the Senate and House of Representatives ()fthe Philippines in Congress 
assembled: 
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~Acr 
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IMPOSING CIVIL PENALTIES ON UNREASONABLE PRICE INCREASES FOR CRUDE 
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OIL, RESIDUAL FUEL OIL, AND REFINED PETROLEUM PRODUCTS 
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SECTION 1. Short Title. - This Act shall be known as the "Fuel Pricing Fairness Act." 
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SECTION 2. Declaration of Policy. - It is the policy of the State to promote the general 
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welfare and protect consumers from trade malpractices. 
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SECTION 3. D~fznition of Terms. - For the purposes of this Act, the term: 
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(A) 
"Energy-producing company" means a person engaged in: 
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(1) 
Ownership or control of mineral fuel resources or non-mineral energy 
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resources; 
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(2) 
Exploration for, or development 01: mineral fuel resources; 
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(3) 
Extraction of mineral fuel or non-mineral energy resources; 
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(4) 
Refining, milling, or otherwise processing mineral fuel or non-mineral 
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energy resources; 
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(5) 
Storage of mineral fuel or non-mineral energy resources by any means 
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whatever; or 
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(6) 
Wholesale or retail distribution or mineral f'uels, non-mineral energy 
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resources or electrical energy; 


· . 
(B) 
"Unreasonable price increase" means any price Inc,ease thal exceeds any 
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concurrent increase in the production or operation cost of the energy-producing company that are 
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directly related to the products being sold. 
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(C) 
(D) 
"Energy industry" means all energy-producing companies. 
"Crude oil" means a naturally-occurring substance found trapped in certain rocks 
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'below the earth's crust. It is a dark, sticky liquid which, scienti1ically speaking, is classed as a 
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hydrocarbon. It is highly flammable that can be burned to create energy. 
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(E) 
"Residual fuel oil" means a liquid or semi-liquid, high-boiling fraction of residue 
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from the distillation of petroleum which is used as a fuel. 
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(F) 
"Refined petroleum products" means products derived from crude oils through 
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processes such as catalytic cracking and fractional distillation. These products have physical and 
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chemical characteristics that differ according to the type of crude oil and subsequent refining 
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processes. These include gasoline, kerosene, liquefied petroleum gas (LPG), No.2 Fuel Oil, No. 
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' 4 Fuel Oil, NO.5 Fuel Oil (Bunker B), and No.6 Fuel Oil (Bunker C). 
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(G) 
(H) 
(I) 
"LPG" means liquefied petroleum gas. 
"DOE" means Department of Energy. 
"DTI" means Department of Trade and Industry. 
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SECTION 4. Civil Penalty for Unreasonable Price Increases fiJI' Crude Oil, Residual 
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Fuel Oil, and Refined Petroleum Products.-
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(A) 
In General. -
Not later than three (3) months after the date of enactment of this 
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Act, the Secretary of Energy, in coordination with the Secretary of Trade and Industry, shall 
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issue regulations that-
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(1) 
(2) 
Apply to all crude oil, residual fuel oil, and refined petroleum products 
that are sold and used as energy fuel in the Philippines; 
Prohibit any unreasonable price increase for such products by an energy-
producing company; and 
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, , 
(3) 
Impose a civil penalty of not less than One Million Pesos (P I ,000,000.00) 
but not more than Ten Million Pesos (P I 0,000,000.00) for each 
unreasonable price increase. 
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(B) 
Determination of Unreasonable Price Increase. - The DOE, in coordination with 
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the DT!, shall determine at least annually whether any energy-producing company has 
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implemented an unreasonable price increase in violation of regulations issued under paragraph 
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(A) of this Section. 
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SECTION S. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 6. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
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with the provision of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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