The Malacanang Palace on Wednesday ordered the Department of Energy (DOE) to look into the report of Socioeconomic Planning Secretary Ralph Recto, which stated that current gasoline prices are overpriced by as much as P8.

This came as the DOE's ongoing investigation of the alleged large earnings of various oil companies has yet to yield any results.

"If they go beyond the limit, then it's only proper for DOE to take them to task," said Executive Secretary Eduardo Ermita. The DOE has been given a go signal to crack down on any oil company found to be overpricing.

Recto's report even has Sen. Miriam Defensor Santiago convinced. "Yes, it's really overpriced."

However, the DOE said it has yet to find actual incidents of overpricing on the part of the oil firms. "We have to ask NEDA (National Economic and Development Authority) to work with us," said Zenaida Monsada, director of the DOE's Oil Industry Management Bureau.

Oil giant Pilipinas Shell has already issued a statement on the matter, insisting that it has been pricing its products fairly. "I think NEDA knows that market forces is also a factor in pricing," said Pilipinas Shell spokesman Roberto Kanapi.

Meanwhile, the Palace has supported the review of the oil deregulation law to protect the public from unwarranted oil price increases.

Oil smuggling?

Earlier, Presidential son Rep. Juan Miguel "Mikey" Arroyo, chair of the House Committee on Energy, named five oil companies with pending smuggling cases with the Court of Tax Appeals and the Department of Justice.

He identified the firms as Oilink, Tri-Solid, PTT, and Mawab and Andan. Arroyo said Oilink paid the government P2.7 billion, while the others paid P83 million (Tri-Solid), P20 million (Mawab and Andan), and P470 million (PTT). All the firms paid the amount in protest.

In the third public hearing on House Resolution 1035 regarding the reported smuggling of refined petroleum products, Arroyo clarified that these five should not yet be labeled as smugglers as their cases have yet to be decided by the court and other administrative bodies.

"Let's not judge them muna kasi pending pa kaso (Let's not judge them yet since the case is still pending)," he said.

Both PTT and Oilink representatives were present at the hearing, but both denied the smuggling charge.

"There was no misdeclaring, it's just a post-audit case," said Oilink lawyer Rodolfo Britanico. Report from Alvin Elchico, ABS-CBN News