Gatchalian wants Downstream Oil Deregulation Act updated

Senator Sherwin Gatchalian is looking to file a measure which he said would strengthen fair competition and further prevent cartels and predatory pricing in the downstream oil industry.

In an emailed statement, the Senate Committee on Energy chair cited the need to fortify government oversight on the industry.

"I'm planning to file a bill that will give more teeth to existing laws in the downstream oil industry and we are studying ways to strengthen the anti-trust safeguards in RA (Republic Act) 8479 and how it can interact with the Philippine Competition Act," he said.

Signed on February 10, 1998, RA 8479 or the Downstream Oil Industry Deregulation Act of 1998 liberalized the industry to ensure a competitive market.

Gatchalian noted, however, that there is a need for transparency in the pricing mechanism for pump prices of fuel products.

"The promise of the law is to provide reasonable prices, encourage competition and investments. The cut-throat competition among oil companies leading to lower prices, which was envisioned when RA 8479 was enacted, is simply not happening," said Gatchalian.

Just last week, the Supreme Court overturned a lower court's decision mandating the country's major oil companies to open up their books for an investigation on the supposed anti-competitive pricing practices. —Jon Viktor D. Cabuenas/KBK, GMA News