THE Supreme Court has denied a plea by oil firms to reinstate the writ of preliminary injunction that the Makati regional trial court has issued in 2019 stopping the Department of Energy from implementing its circular requiring them to disclose the details of price adjustments along with the corresponding explanations and supporting documents.
In a decision promulgated on July 31, the SC’s First Division through Associate Justice Ramon Paul Hernando upheld the October 2022 ruling of the Court of Appeals which reversed and set aside the Makati RTC Branch 58’s grant of writ of preliminary injunction which petitioners Philippine Institute of Petroleum, Inc. (PIP), Isla LPG Corp., PTT Philippines Corp. and Total Philippines prayed for in its petition for declaratory relief which is still pending before the lower court.
PIP is an association of businesses operating in the downstream oil industry in the country.
In its 24-page ruling, the High Court agreed with the appellate court’s ruling there was no basis for the Makati court to stop the DOE from implementing its Department Circular 2019-05-0008 or the Revised Guidelines for the Monitoring of Prices in the Sale of Petroleum Products by the Downstream Oil Industry.
But in their petition, the oil companies claimed the circular violated their rights as it is tantamount to price control and contrary to the policy of full deregulation of the downstream oil industry. The petitioners also argued that the assailed DOE circular affects their right to a truly competitive market and their right against disclosure of their trade secrets and privileged or confidential information.
But the SC in its ruling said the petition was “unmeritorious” as the petitioners have “no clear and unmistakable right” that may be protected by a writ of injunction.
The SC added a reading of the provisions of RA 8479 would readily show it is pursuant to these powers and functions that the assailed DOE circular was issued.
“Republic Act No. 84 79 is clear in allowing the DOE and the DOE Secretary to require the oil companies to submit a detailed report on the petroleum products, in such form as the Secretary may prescribe, in order for the DOE to fulfill its mandated duty of monitoring and publishing daily international crude oil prices, as well as following the movement of domestic oil prices,” the SC said in dismissing the plea of the petitioners.
The High Court also dismissed the petitioner’s claim that the DOR circular is violative of their rights, adding there is no substantial or material invasion of their rights.
