Taguig court issues TRO vs. DOE ‘unbundling’ circular

A Taguig City court has temporarily stopped the Department of Energy (DOE) from implementing a controversial circular requiring oil companies to “unbundle” or reveal the details on how the firms adjust the prices per liter of petroleum products.

In a decision dated July 3, the Taguig City Regional Trial Court Branch 70 issued a temporary restraining order (TRO) against the DOE’s Department Circular No. DC2019-05-0008 or the “Revised Guidelines for the Monitoring of Prices on the Sale of Petroleum Products by the Downstream Oil Industry in the Philippines.”

Taguig court issues TRO vs. Department of Energy’s circular on “unbundling” fuel prices. | @Ted_Cordero pic.twitter.com/h9tVjA5Kw6

— GMA News (@gmanews) July 12, 2019

The DOE circular mandates oil companies to “unbundle” or provide the DOE with the detailed computation and corresponding explanation and supporting documents on the causes or reasons of the price adjustment.

Oil companies adjust domestic fuel prices on a weekly basis, usually on Tuesday, based on price movements in global markets.

The TRO stemmed from the complaint filed by Pilipinas Shell Petroleum Corp. on June 24 as the firm believes that the circular leads the industry to return to regulation.

Shell is part of the Philippine Institute of Petroleum Inc. (PIP) which filed a “Petition for Declaratory Relief with Application for a Temporary Restraining Order and/or Preliminary Injunction.”

Apart from Shell, PIP counts as members Chevron Philippines Inc., Isla LPG Corp., Petron Corp., PTT Philippines Corp., and Total Philippines Corp.

“After a careful perusal of the allegations and arguments raised by the plaintiff in its complaint and additional arguments raised during the summary hearings on June 25 and July 2, as well as the counter-arguments raised... for defendant,” the court said it found there is a cause for the issuance of TRO from implementing DC2019-05-0008 and “maintain status quo.”

The TRO shall be effective for a period of 20 days from receipt of the order.

Energy Assistant Secretary Leonido Pulido III said the DOE has received a copy of the TRO on July 8.

"We will, of course, respect the court order but we will discuss the same with our counsel, the Office of the Solicitor General, as to how to proceed," Pulido told GMA News Online.

"We will discuss how we can move to have the order reconsidered or appeal to appropriate authority. The DOE is serious in its objective in implementing the unbundling circular," he said.

The court scheduled a hearing for a writ of preliminary injunction on the said circular on July 12. — RSJ, GMA News