MOMENT: Marcoleta walks out of Senate hearing over DOE oil price oversight frustration

[0:00] You said earlier that you have a monitoring function under RA-8479. [0:07] You can also use EO-839. [0:10] You can also issue a SOCOs order. [0:15] What was the first thing you did? [0:17] Did you look at the basis of the 110? [0:21] That's what I want to return. [0:24] Or you just suddenly believed, you didn't validate. [0:30] That was their inventory before. [0:32] How can it be 110 from 55? [0:36] So if you used your duty under the law, like you monitor, you screen everything, [0:45] did you ask them to present, for example, documents to validate that it needs to be 110 per liter? [0:55] Did you get the documents from them that the basis was already purchased on the replacement cost? [1:02] How did that happen? [1:03] That's what we're talking about in the inventory. [1:05] There's nothing yet. [1:06] The problem is, [1:07] the replacement cost, Mr. Chair, [1:11] even if they don't have what they're going to buy in their next purchase, [1:17] the cost dictated by ARGOS and MAPS should already be there. [1:23] That's the problem. [1:24] This replacement cost, Mr. Chair, [1:27] is connected to what we call the Rockets and Feathers Irony. [1:32] What does that mean? [1:33] This Rockets and Feathers Irony focuses on the asymmetry of pricing. [1:40] Well, [1:43] your prices shoot like rockets when the global prices rise, [1:49] but they fall like feathers when they drop. [1:56] That's the way it is. [1:58] Who's hitting it? [1:59] The people, right? [2:01] Can you explain that? [2:05] How can it be 110 when you can't even validate it? [2:15] Thank you very much. [2:17] I mentioned that the Director of the Oil Industry Management Bureau [2:20] is to submit how the OIMB does its monitoring, [2:24] but to answer it precisely, we can have... [2:26] And therefore, [2:26] after two weeks, it became 110. [2:31] So, did you confirm that? [2:32] Did you validate that? [2:33] That they really bought at 110 pesos per liter? [2:39] Or did they just use their inventory? [2:42] Because at that time, [2:44] they still had 46 days for diesel [2:46] and 53 days for gasoline. [2:53] Mr. Chair, [2:55] because we always have the cyclic differential cost... [3:04] Right. [3:06] It's hard when you're there to sell. [3:08] This is what I'm saying. [3:09] They still have inventory. [3:11] You take note. [3:12] It's still 46 days. [3:13] This is last year. [3:15] It means they still bought at the same price. [3:19] After two weeks, they suddenly sold. [3:24] They said 110. [3:27] Now, it's abrading at 126. [3:30] How did you monitor? [3:32] How did you validate that it's true [3:34] while they're still using their inventory? [3:38] They bought at the same price. [3:40] Mr. Chair, [3:43] because basically it's like saying that the diesel [3:46] we consume is around 30, 33 million liters per day. [3:56] So, it's about seven days. [3:59] And when that's sold, [4:03] they always... [4:04] After two weeks, [4:06] the inventory is already empty. [4:08] The inventory is already 45. [4:10] So, when it comes to next week... [4:12] No, wait. [4:13] Let's go to their inventory first. [4:15] After two weeks, [4:16] is the inventory empty? [4:18] Is that the assumption of DOE? [4:20] No, it's around seven days. [4:22] Where did you put the 110? [4:23] That is the question. [4:24] So, Mr. Chair, [4:26] because they have to replenish again the seven days. [4:31] Yusek, you're not a director. [4:35] After two weeks, [4:36] the inventory is still there. [4:39] Yes. [4:40] Okay. [4:41] But after two weeks, [4:42] 110. [4:43] The inventory is still there. [4:44] So, the inventory is still there. [4:47] How did you justify that? [4:51] Because, Mr. Chair, [4:52] the inventory will have to be replaced [4:56] right after next week. [4:58] So, the amount... [5:01] So, what happened... [5:03] The person who financed it is the people. [5:06] No, you should say it. [5:08] Not the... [5:08] That's the way... [5:10] Repeat what you said. [5:11] So... [5:12] No, repeat what you said. [5:13] Yes, it's really... [5:14] No, exactly. [5:15] It's passed on to... [5:17] That's it. [5:17] That's it. [5:18] How about their shareholders? [5:20] They're not moving? [5:21] The people who capitalized on us? [5:26] The inventory is still there. [5:28] This is the problem. [5:29] Now, you're not using the law [5:33] that says, [5:35] in periods of emergency, [5:36] you're the one who will do it. [5:38] As a matter of fact, [5:39] you can take over. [5:40] That's not what... [5:41] That's not what the committee is suggesting. [5:46] We're all finding solutions to this. [5:48] But these questions are simple. [5:49] You can't answer them. [5:52] Mr. Chair, we would like to clarify [5:54] that we're not here to dispute the business models [5:56] of our oil companies. [5:58] As a matter of fact, [5:58] we're thankful for their sacrifices for this country. [6:02] However, [6:04] it would appear that the business models [6:06] are no longer responding to the crisis [6:08] if we believe [6:09] what you're saying, [6:11] the problem we're facing. [6:12] But until and unless we're able to validate [6:15] the data I've received earlier, [6:18] we're almost four hours now [6:19] since 10 o'clock in the morning, [6:22] it's possible. [6:23] It's possible that the tank... [6:24] Vessel to tank, [6:26] you can probably use a Panamax vessel. [6:30] It's probably about 100,000 metric tons [6:33] per container. [6:38] But no one is validating it, Mr. Chair. [6:40] So that I can just go home. [6:42] If you prove me wrong, [6:43] for example, [6:44] I got the wrong information, [6:46] I'll just say sorry, Mr. Chair. [6:50] I can say sorry if it's wrong. [6:54] I'm just chasing my friend [6:57] who told me that. [6:58] Why did you say that? [7:00] It's wrong. [7:00] Because I just want to help. [7:03] I wanted to be wrong, [7:05] if it's really wrong. [7:07] But you have to prove me wrong. [7:13] Government to government, [7:14] it shouldn't happen. [7:16] The tank is there. [7:19] The tanks of the two refineries. [7:22] Rotterdam Refinery produces, [7:23] I think, 1.2 billion barrels [7:25] per day. [7:29] And their tank is there in Singapore. [7:32] Petronas also, [7:33] their tank is there. [7:34] That's their price. [7:36] Nobody is reacting to that. [7:38] Nobody is reacting to that. [7:38] We're talking about the problem [7:40] and the measures that we're going to take [7:43] without even going back [7:44] and checking whether those data [7:46] are valid or not. [7:51] So how about the replacement cost? [7:53] I already told you, [7:55] if we're going to allow that [7:56] after three weeks, [7:58] or after two weeks, [8:00] 3 billion pesos per day. [8:04] Did you check this? [8:06] You said? [8:08] Okay. [8:09] No, did you check that [8:10] it's 3 billion pesos per day, [8:12] the income? [8:14] I said that earlier. [8:15] But the collection, [8:21] this week, [8:22] was also used to purchase [8:24] the level, [8:26] even higher level of products. [8:30] You took it already [8:31] because you should have, [8:34] there should be a point [8:35] where the replacement cost should begin. [8:38] Where will it start? [8:40] The inventory should end [8:42] where the replacement cost should begin. [8:45] What's happening, [8:47] here it is, [8:49] you bought the town by 110 already, [8:52] two weeks, [8:52] and you sold it, [8:54] your own inventory. [8:55] So, it is the public, [8:57] it is the poor public. [8:59] There's Mr. [9:00] Boss, what's your name? [9:03] Mr. Balbuena, [9:04] who was just passing by. [9:09] So. [9:11] Mr. Chair. [9:13] Mr. Chair. [9:17] Mr. Chair, [9:19] we're not saying that [9:20] that is right in the business, [9:23] the way it's now deregulated. [9:25] But you're not answering my question, [9:27] Director. [9:28] Answer it first. [9:30] It's the 3 billion pesos per day. [9:34] It's only one month. [9:34] It's only one month. [9:36] So, [9:36] per day, it's 3 billion. [9:37] Yes, Mr. Chair. [9:39] If the perspective, [9:40] because it's a matter of perspective, [9:41] if the perspective is to ensure [9:44] that the seven days used up this week [9:49] will be replaced by next week immediately, [9:52] then the oil company has to collect [9:54] that level of collection [9:58] to be able to purchase the seven days replacement. [10:01] So, we can always go back to the 45 to 50 days supply. [10:06] But if the perspective, again, [10:08] if the perspective is you want to use up the 53 [10:11] before you replace it, [10:14] and that is very dangerous, [10:15] then I think we can exhaust the 53 at that lower price. [10:21] But the problem is if they're gone [10:24] and the collection is very low, [10:27] you can no longer replace the 53 days. [10:31] So, it's really, [10:33] that's how they're explaining also on Caltex, [10:37] was also explaining that in the same way. [10:39] But you are proceeding. [10:40] You're proceeding from the wrong premise. [10:42] What I'm saying from now on, [10:44] what you're talking about are maps and indicators [10:46] coming from the Argos, okay? [10:49] That's the basis of the replacement cost, okay? [10:53] This is your spot market, [10:54] this is your trading floor. [10:57] What I'm saying is, [10:59] after two weeks, [11:00] and considering that you still have 46 days [11:03] and 53 days for diesel and gasoline respectively, [11:07] you've already collected 3 billion. [11:10] You've already earned 3 billion. [11:11] 3 billion pesos per day, [11:13] which was bankrolled by the people themselves. [11:17] This is the irony. [11:19] Now, what's your role in the period of emergency [11:23] and national interest is involved already. [11:26] But we're still talking about replacement cost immediately. [11:29] This is your answer first. [11:31] Is it reasonable? [11:33] Is this reasonable in two weeks' time? [11:36] Mr. Chair, again, it's a matter of perspective. [11:39] When the law says that we may direct the operation, [11:42] we have to be mindful of it. [11:44] Again, on price, [11:47] we have to be mindful of allowing the oil company [11:51] to be able to replace it on a weekly basis. [11:54] Let's close the argument. [11:57] Did you check the oil companies? [12:00] Did you get the document? [12:01] Who bought it? [12:03] Can you see how much they bought it? [12:05] Did you check that? [12:06] Have you done that? [12:11] Not in that very... [12:12] So, what are you going to say now? [12:15] That's your responsibility. [12:16] If you're screening, [12:17] if you're monitoring, [12:18] okay, let's say replacement cost. [12:20] Come here, friends. [12:22] Can you bring your ICPO? [12:26] Let's see if you can... [12:27] Where did you buy it? [12:28] We bought it at this price. [12:30] This is the price. [12:31] At least, we checked. [12:33] Now, I am asking you, [12:34] did you check? [12:35] You said no. [12:36] So, what is monitoring? [12:38] This is the frustration, Mr. Chair. [12:43] Thank you. [12:46] Mr. Chair? [12:47] Mr. Balbuena, [12:51] you want to interject? [12:54] If you're frustrated, [12:55] you didn't get an answer. [13:02] Mr. Chair? [13:03] Go ahead.