Anti-cartel suit filed vs. LPG dealers

MANILA, Philippines—Federation of Philippine Industries chairman Jesus Arranza on Monday filed before the Department of Justice a criminal case against the Liquefied Petroleum Gas Manufacturers Association for alleged cartelization and monopoly.

“In practice, the respondents have banded together and associated themselves and, by their agreement and/or concerted action, have fixed the price of LPG in the market, in restraint of trade or free competition,” Arranza said in his complaint.

He charged respondents Arnel Ty, Danilo Chua, Alison Sy, Rene Rosell, Ana Leah Castro, Ronnie Sevillana, Mar Dave Tang, Virginia Cid, Bonifacio Eleria, Orlando Reyes, Allan Ty, Sinforoso Pagunsan and Antonio del Rosario with violating the Downstream Oil Industry Deregulation Act and the Revised Penal Code.

The respondents are incorporators, major shareholders, directors and officers of Lpgma.

Section 11 of the Oil Deregulation Law defined cartelization as any “agreement, combination or concerted action by refiners, importers and/or dealers, or their representatives, to fix prices, restrict outputs or divide markets, either by products or by areas, in restraint of trade or free competition, including any contractual stipulation which prescribes pricing levels and profit margins.”

Any violation of this provision will merit a penalty of three to seven years’ imprisonment plus a fine ranging from P1 million to P2 million.

Article 186 of the Revised Penal Code, on the other hand, guards against monopolies and combinations in restraint of trade, with sanctions ranging from imprisonment and fines ranging from P200 to P6,000.

Arranza said Lpgma was obviously practicing cartelization and monopoly as its price adjustments were always of the same level and implemented at the same time.

“Do they have the same volume of importation, transaction costs and arrival of shipments? How come you can announce a uniform price? To me it can only be done through an agreement,” he said, adding that importers such as Lpgma members could not possibly have exactly the same overhead costs and inventories.

Asked for a comment, Ty challenged Arranza to disclose his real reason for always picking on Lpgma and its members. He likewise denied charges of cartelization.

“If announcing a rollback of LPG price and providing a lower price alternative to the Filipino is a crime, then I’m willing to go to jail for that,” he said in a text message to the Inquirer. “The P1-million question for Mr. Arranza is why he is so interested in Lpgma.”

Abigail Ho, Phil. Daily Inquirer