MANILA — The multi-committee energy crisis response body of the House of Representatives of the Philippines will summon oil industry players to address concerns over alleged “cartel-like” behavior in fuel pricing amid tightening petroleum supply due to the ongoing conflict in the Middle East.

Marikina City Rep. Miro Quimbo, chair of the House Committee on Ways and Means and presiding officer of the House’s Legislative Energy Action Development (LEAD) Council, said oil firms will be asked to explain why their price adjustments move almost identically despite operating in a deregulated market.

“Oo. Yes, yes, definitely. Tatanungin natin sila dyan (We will ask them about that),” Quimbo said in a radio interview when asked if oil companies would be invited to the hearings.

The move came after initial findings of the LEAD Council, created under House Speaker Faustino “Bojie” Dy III, indicated that the weekly pricing system may be encouraging “cartelization” in a market dominated by only a few major players, as fuel prices continue to rise due to the Middle East conflict.

Under the current system, oil companies adjust prices every Tuesday based on global trends from the previous week, with firms often announcing similar price changes in advance, allowing others to match them.

During a LEAD Council hearing on Wednesday, Quimbo raised the issue with Department of Economy, Planning and Development Secretary Arsenio Balisacan, who said markets with only a few dominant players tend to move in the same direction.

“In Economics 101, Mr. Chair, when there are very few players in the markets, and you ask these players, government may be asking them to cooperate, to coordinate, they are actually asking a cartel,” Balisacan said.

Balisacan clarified he was not concluding that a cartel exists but urged regulators to look into the matter, saying “Mr. Chair, I’m not saying that there is a cartel, but I think that our regulatory agencies and in particular, PCC (Philippine Competition Commission) and ERC (Energy Regulatory Commission), should work together to investigate,” he added.

Quimbo, however, said the current pricing structure may be contributing to the issue.

“The intention is good on the part of the Department of Energy to prevent volatility in the market. But the purpose is good, but I think the effect is we are in effect promoting a cartelization, and it is government itself,” he said.

In a radio interview, he noted that only a few major firms dominate the industry.

“Kukonti lang talaga ang players, maraming players, pero karamihan diyan mga maliliit. ‘Yung big players natin diyan tatatlo lang talaga (The players are just a few; there are a lot of players but most of them are small. The big players are only three),” he said.

While stopping short of alleging collusion, Quimbo said the pattern raises concern.

“Hindi pa ako handang sabihin ‘yan, pero ang sinasabi natin, ‘yung resulta tila ganun. Lahat ng indikasyon at lahat ng pagkilos at ‘yung kawalan natin ng resulta sa lahat ng imbestigasyon, nagpapakita na tila meron (I am not ready to say that, but what I’m saying is that the results seem to point to that. All indicators and all movements and the lack of results in all investigations show that there is),” he said.

He also flagged possible hoarding, saying some fuel stations reportedly closed or rationed supply even when availability was sufficient.

“The supply was never an issue. We always had enough supply. It was just that it was expensive. So bakit nagsasara? Because alam nila, pagdating ng Tuesday, magtataas na naman ng presyo (So why are they closing? Because they know that come Tuesday, the price will rise again),” he said.

Quimbo said the matter now depends on stricter enforcement measures.

The LEAD Council, composed of 13 House committees, is currently working on both immediate relief measures and long-term solutions to help consumers cope with rising fuel costs.