President Ferdinand Marcos Jr. has nominated Raphael Lotilla to be his Energy secretary, Malacañang said Monday.
“The President has designated a new Energy Secretary, Raphael Perpetuo Lotilla,” Press Secretary Trixie Cruz-Angeles said in a statement.
Cruz-Angeles, however, said in a subsequent statement that the designation of Lotilla remains a “nomination” pending clarification of his employment status.
“Atty Lotilla, President Ferdinand Marcos Jr’s personal choice to head the DOE, is currently an independent director of Aboitiz Power and also of ENEXOR. Sec. 8 of RA 7638 or the Act Creating the Department of Energy states that ‘No officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry shall be eligible for appointment as Secretary within two (2) years from his retirement, resignation, or separation therefrom,’” she said.
“Thus while the matter is reviewed to determine whether an independent director is considered an officer of the company, Lotilla is considered a nominee,” she added.
Lotilla previously served as Energy Secretary from 2005 to 2007 during the administration of former President Gloria Macapagal-Arroyo.
Prior to that position, he was the President of the Power Sector Assets and Liabilities Management Corporation and the Deputy Director General of the National Economic Development Authority.
After the Palace announcement, industry players expressed strong support for Lotilla’s nomination.
“Popo Lotilla is intelligent, very competent, and a good leader. He can lead DOE to greater heights. We will give him all the support to ensure that the energy industry will thrive well, especially under current conditions of high prices,” said Jay Layug, president of the Developers of Renewable Energy for AdvanceMent, Inc. (DREAM).
Manila Electric Co., the country’s biggest power retailer, also lauded the appointment.
“We look forward to working with Secretary Lotilla as we have done in the past. We hope to contribute positively to many of the issues in the power industry. We are very optimistic that with him at the helm, we will be able to address many of these concerns to the benefit of the consuming public,” Meralco spokesperson Joe Zaldarriaga said.
Terry L. Ridon, convenor of Infrawatch PH, said Lotilla has had a long experience serving at the highest levels of government, with a track record of competence and integrity in public service.
“We intend to work with him to reduce the costs of electricity through reducing taxes in the energy sector, removing unnecessary charges and renegotiating power supply deals with power generators,” Ridon said.
Consumer group Laban Konsyumer Inc. president Victorio Mario Dimagiba said Lotilla is honest and transparent and promotes participatory management.
Lotilla began his career in the academe as an Assistant Professor of Law in 1985 at the University of the Philippines upon his admission to the Bar.
Before joining the government, Lotilla served as a legal consultant to the Senate and the Senate Committee on Foreign Relations.
Lotilla holds undergraduate degrees in Psychology and History, a Bachelor of Laws degree from the University of the Philippines, and a Master of Laws degree from the University of Michigan Law School.
Meanwhile, the country’s oil firms implemented a big-time rollback in pump prices of as much as P6.10 per liter effective 6 a.m. today (Tuesday) to reflect the movement of prices in the world oil market.
Oil firms cut diesel prices by P6.10 per liter, kerosene by P6.10 per liter, and gasoline by P5.70 per liter.
This is the second consecutive week that the oil firms cut the price of diesel and kerosene.
On July 5, the oil companies implemented a price cut for diesel by P3 per liter and kerosene by P3.40 per liter. Gasoline prices did not move. These resulted in the year-to-date adjustments to stand at a net increase of P42.90 per liter for diesel and P36.35 per liter for kerosene, while gasoline remained at P30 per liter.
At the House of Representatives, a party-list lawmaker on Monday proposed the revival of the old Oil Price Stabilization Fund (OPSF) created by the first Marcos administration in 1984.
“We should revive the OPSF or establish a similar buffer fund, which the government could use to avoid frequent adjustments in the pump prices of oil products due to fluctuations in the cost of crude oil in the world market and in the peso-dollar exchange rate,” 1-Pacman Rep. Mikee Romero said.
Romero proposed that the fund be sourced from higher excise taxes imposed on diesel, gasoline, cooking gas, and other oil products under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
“Since the government is not agreeable to the suggested suspension of excise taxes while the cost of crude is above $80 per barrel, we could use part of these impositions as a price stabilization fund to provide relief to the public from increased fuel and consumer prices,” he said.