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Senate junks bill regulating Mobil, Shell
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Posted on May 02 2012
By Haidee V. Eugenio
Reporter
Reporter
Mobil Oil Mariana Islands Inc. and Shell Marianas, among other firms, can heave a sigh of relief for now, following the Senate’s rejection last night of a House bill subjecting liquid fuel distributors and retailers under the regulatory jurisdiction of the Public Utilities Commission.
By a vote of 7-0, the Senate adopted during a session on Rota the Senate Committee on Public Utilities, Transportation and Communications’ report recommending rejection of House Bill 17-238, House Draft 1, Senate President Paul Manglona (Ind-Rota) and other senators said last night.
HB 17-238, authored by House Vice Speaker Felicidad Ogumoro (Cov-Saipan), passed the House on first and final reading during a Dec. 6 session, less than a month after it was introduced on Nov. 10 and without public hearing.
The Senate, through its PUTC Committee, gathered comments from oil giants and other affected parties before recommending that the bill be rejected, citing negative impacts on consumers and the CNMI in general.
Mobil Oil Mariana Islands Inc. president Jaime Andres Ortega told Saipan Chamber of Commerce members and guests in April that HB 17-238 tries to “micromanage” fuel suppliers and retailers. He said the bill is detrimental not only to Mobil but also to the entire CNMI economy.
“Regulations do not necessarily lead to price reductions,” he had said, adding that “no amount of government intervention will help overcome the market forces driving the price of fuel.”
Among the factors affecting fuel prices is the price of crude oil; manufacturing, transportation, marketing and other costs; and taxes.
