Facts:

• Two petitions were filed by Senator Ernesto Maceda and Atty. Oliver Lozano against the Energy Regulatory Board (ERB) and several oil companies, including Pilipinas Shell Petroleum Corporation, Caltex (Philippines) Inc., and Petron Corporation.
• The petitions challenged an ERB Order dated September 21, 1990, which authorized a provisional increase in petroleum product prices.
• Price increases included:
  • Premium Gasoline and Regular Gasoline: P1.7700 per liter
  • Avturbo: P1.8664
  • Kerosene and Diesel Oil: P1.2400
  • Fuel Oil: P1.4900
  • LPG: P0.8487
• The oil companies applied to the ERB on September 10, 1990, citing rising importation costs and a depreciating peso.
• The ERB granted these applications without a prior hearing, prompting the petitioners to argue that the Order was issued with grave abuse of discretion, lacked jurisdiction, and violated due process.
• The petitioners claimed the ERB's action constituted a new tax, which only Congress can impose, and effectively re-collected ad valorem taxes abolished by Republic Act No. 6965.
• A hearing was scheduled for October 25, 1990, where both sides presented arguments, and the cases were consolidated for resolution.

Issue:

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Ruling:

• The Supreme Court dismissed the petitions filed by Senator Maceda and Atty. Lozano.
• The Court ruled that the ERB did not commit grave abuse of discretion in issuing the questioned Order.
• The ERB acted within its authority under Executive Order No. 172, which allows for provisional relief wi...(Unlock)

Ratio:

• The Court's decision was based on the interpretation of Executive Order No. 172, particularly Section 8, which permits the ERB to grant provisional relief without a prior hearing based on verified supporting documents.
• While a hearing is generally required, the ERB is authorized to act ex parte in urgent situations, with a hearing scheduled within thirty days thereafter.
• Evidence from the oil companies, including rising import...continue reading