FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
S.No. l g z  
Introduced by Senator Miriam Defensor Santiago 
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 
ow 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.* 
' This bill was originally filed during the Thirteenth Congress, First Regular Session. 


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FOURTEENTH CONGRESS OF THE RFiPuSLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
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 
assembled: 
SECTION 1. Short Title. - This Act shall be lmown as the “Fuel Pricing Fairness Act of 
2007.” 
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. -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) Relining, 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; 
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(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. 
(C) “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 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 - Liquefied Petroleum Gas. 
(H) “DOE” means Department of Energy. 
(I) “DTI” means Department of Trade and Industry. 
SECTION 4. Civil Penalty for Unreasonuble 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 
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(3) impose a civil penalty of not less than One Million Pesos (Pl,OOO,OOO.OO) but 
not more than Ten Million Pesos (PlO,OOO,OOO.OO) 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. 
SECTION 5. Separability 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, rule or regulation contrary to, or inconsistent 
with, the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days a€ter its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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