LKI 55th Press Statement- price fixing, cartel.and collusion in the oil industry

2019-11-18 10:31:01


LKI 55th Press Statement  

NOVEMBER 14,  2019  

LKI calls out price fixing, collusion and cartel with petroleum products 

Vic Dimagiba , the President of Consumer group Laban Konsyumer Inc. 

(LKI) filed with the anti trust body, the Philippine Competition Commission  “a complaint against the Respondents oil companies which operate petroleum service stations and sell petroleum products of price fixing, collusion and cartel in violation of law by entering into an agreement substantially preventing and restricting competition in the retail of petroleum products. The ultimate victim of this collusion is of course the consumers, as we will be forced to pay higher prices, as a result of price fixing.” 

LKI President Vic Dimagiba said “In our filing to the Republic of the Philippines Philippine Competition Commission, Quezon City,  the  complaint included  the Respondent Department of Energy (DOE) in abetting and facilitating the commission of price fixing, collusion and cartel by the other Respondents oil companies in adopting and continuing the implementation of a pricing formula that substantially restricts and prevents competition in the retail of petroleum products, in violation of ensuring market competition in the oil retail industry and of law. The commission must work double time to ensure that there is fair pricing and absolutely no collusion, so as to provide the best and lowest possible costs for consumers.” 

Dimagiba continued by saying “I depose and allege that I am filing a complaint against all respondents for price fixing, collusion and cartel, in violation of all these laws. I had exhausted administrative remedy with the Respondent DOE but no action had been taken as of date. I believe that price fixing, collusion and cartel is being abetted and facilitated by a pricing formula which was agreed and entered by all respondents as I 

found out that the pricing formula, which I labeled as an automated pricing formula is posted in the website of the respondent DOE.” 

Dimagiba  continued to explain that “And we found out that the pricing formula is substantially preventing and restricting fair and competitive pricing of the products amongst each of the respondent oil companies and instead the parties agreed amongst themselves to adjust prices of the same amount and effectivity date and without relating price setting as to whether the oil company is an oil refiners or wholly importer of finished products, and other costs.” 

Dimagiba concluded by saying “we hope that the Philippine Competition Commission acts swiftly on this, so as to punish those responsible for doing collusion and price fixing. If quick action is taken against these violators, then we may also be able to prevent future collusion and price fixing, and end up protecting consumer welfare, which is of utmost priority for our consumer group. We call out these violators and demand that justice be served to them. The first step is for the Commission to review our filing and investigate them for these charges.” 

For any inquiries or concerns, you may reach LKI President Vic Dimagiba at 0917-812-5546. Visit our updated website at www.labankonsyumer.com and like us on Facebook and Twitter. Send any inquiry to labankonsyumer@gmail.com 


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