THE Supreme Court has declared that the Department of Energy may take over oil industry operations in times of emergency upon the directive of the President.
Chief Justice Alexander Gesmundo and twelve other associate justices concurred with the decision released to the public last March 4, 2024, while two others took no part. The petitioners further argued Section 14 provides the specific duration of and restrictions in wielding the takeover power. The SC anchored its decision on Article XII, Section 17 of the Constitution which provides for the takeover operations of privately owned public utilities or businesses affected with public interest by the President.
It pointed out that Article VII, Section 17 of the Constitution gives the President “control of all the executive departments, bureaus and offices. “In other words, the President may carry out their functions through the heads of the executive departments. The case stemmed when Pilipinas Shell and Petroleum Corporation assailed before the Regional Trial Court of Makati City the validity of Arroyo’s EO 839 directing oil industry players to maintain the prices of their petroleum products following the onslaught of Typhoons “Ondoy” and “Pepeng” in 2009 which affected nine million people and leaving almost 1,000 casualties, 700 injured and 84 missing.