Repealing Oil Deregulation Law? Palace says up to Congress

Malacañang said Tuesday it is up to Congress to decide whether there is a need to repeal the Oil Deregulation Law amid the continuing increase in the prices of fuel products. 

At a press briefing in Cebu, Palace Press Officer Undersecretary Atty. Claire Castro was asked about Malacañang's position on calls to repeal the law, which liberalizes the oil industry.

''Nasa Kongreso na po 'yan kung ano po ang kanilang nasa saloobin o kung ano ang nakikita nilang maganda para sa ating bansa at kung maipapakita nila o maiimpluwensyahan nila sa pamamagitan ng kanilang pagbalangkas ng batas ang ating Pangulo, lahat po ng ikagaganda ng bansa, hindi naman po ito tututulan ng Pangulo,'' Castro said.

(It's up to Congress to decide on the measures which they think can best addressed the country's concerns. If they can influence the President in crafting this measure, the President will not oppose to it especially if it's for the welfare of the country.)

Republic Act No. 8479 or the "Downstream Oil Industry Deregulation Act of 1998'' seeks to liberalize and deregulate the downstream oil industry in order to ensure a truly competitive market under a regime of fair prices, adequate and continuous supply of environmentally-clean and high-quality petroleum products.

This law removes direct government control over the pricing and distribution of petroleum products, allowing market forces of supply and demand to set the prices.

Section 5 of the law states that: ''Any law to the contrary notwithstanding, any person or entity may import or purchase any quantity of crude oil and petroleum products from a foreign or domestic source, lease or own and operate refineries and other downstream oil facilities and market such crude oil and petroleum products either in a generic name or his or its own trade name, or use the same for his or its own requirement: Provided, That any person who shall engage in any such activity shall give prior notice thereof to the DOE for monitoring purposes: Provided, further, That such notice shall exempt such person or entity from securing certificates of quality, health and safety and environmental clearance from the proper governmental agencies: Provided, furthermore, That such person or entity shall, for monitoring purposes, report to the DOE his or its every importation/exportation: Provided, finally, That all oil importations shall be in accordance with the Basel Convention.''

Under the law, the Department of Energy shall monitor the relationship between the oil companies (refiners and importers) and their dealers, haulers and LPG distributors to help ensure the observance of fair and equitable practices and to ensure the enforcement of existing contracts.

There have been calls by some lawmakers to scrap this law due to the impact of the Middle East conflict to the prices of oil products.

The DOE earlier said it has no authority to impose a cap on fuel prices due to the said law.

According to DOE Secretary Sharon Garin, while the amendment of the oil deregulation law would help moving forward, there are currently no measures that give the department an authority to implement a ceiling on prices.

The DOE announced the following projected fuel price adjustments for the period of March 17 to 23:

• Diesel: ₱20.40 to ₱23.90 per liter
• Gasoline: ₱12.90 to ₱16.60 per liter
• Kerosene: ₱6.90 to ₱8.90 per liter

— RSJ/RF, GMA Integrated News