House panel OKs oil deregulation act amendments amid price surge

The House Committee on Energy has approved amendments to the Downstream Oil Industry Deregulation Act to address soaring global fuel prices.

The proposed amendments require oil companies to increase their minimum inventory to 30 days' worth of supplies for refiners, importers, and distributors.

Oil companies will also be required to submit an "unbundled" breakdown of retail prices to the Department of Energy.

This unbundling aims to prevent oil firms from unjustifiably raising prices on old stock, even if inventory was purchased at a lower price.

The Department of Energy (DoE) has previously pushed for oil price unbundling, but a temporary restraining order from a local court has hindered its implementation.

The committee believes that unbundling the retail price does not contradict deregulation but can be a tool to ensure its effectiveness.