The Philippine Online Chronicles

The Department of Justice (DOJ) recommended on Friday the filing of charges against LPG Marketer’s Association (LPGMA) partylist Rep. Arnel Ty and eight others for violating anti-cartel provisions of the Revised Penal Code and Republic Act no. 8479 or the Downstream Oil Industry Deregulation Act.

A DOJ panel came out with a 10-page resolution written by prosecution attorney Cesar Angelo Chavez III and approved by Prosecutor-General Claro Arellano citing LPGMA’s use of “price signaling” as a tool to “dictate liquefied petroleum gas prices on their competitors.”

The other eight individuals that may be charged are Danilo Chua, Alison Sy, Rene Rosell, Ronnie Sevillana, Mar Dave Tang, Virginia Cid, Bonifacio Eleria and Antonio del Rosario, stockholders and officers of LPG-partner firms.

The issue was raised by Jesus Arranza, chair of the Federation of Philippine Industries in a complaint filed on October 22, 2010. Arranza alleged that Ty’s announcements to media of LPG’s uniform prices are “tantamount to cartelization.” He added that the LPGMA forces nonmembers to roll back prices of their LPG tanks because of Ty’s announcements of rollback.

The DOJ panel wrote, "The respondents clearly agreed to fix the price of their LPG products. This is evidenced by the fact that the LPGMA members have unanimously consented to the declarations made by respondent Ty, as their president, announcing the price rollback of their products.”

The panel said their move to ensure uniform prices is practice called “price signaling” which restrains free competition.

Meanwhile, in an interview, Ty said, “We will file a petition for review and we will do all possible legal actions to protect consumers.”

He added that he will not abandon his duties in Congress pending the resolution of the case.

The LPGMA also filed a counter-affidavit claiming that DOJ does not have jurisdiction over the case and it should have been filed instead with the joint DOJ-Department of Energy Task Force which investigates oil-related cases.

"The LPGMA members' decision to cut LPG prices was reached independent of the other members given the prevailing market condition," LPGMA said.

Meanwhile, respondents Tang and Sevilla said, "The LPGMA members' decision to cut LPG prices was reached independent of the other members given the prevailing market condition."