Philippines to Review Oil Deregulation Law

Petron Corp., Pilipinas Shell Petroleum Corp. and Total Philippines Inc. last week implemented an across-the-board price increase of their oil products. The three oil companies increased the price of diesel products by 25 centavos per liter, standard fuel by 50 centavos, and E-10 blended gasoline by 75 centavos.

The oil firms said the price increases reflected the cost of the fuel blend mandated under the new biofuels law. Remonde said the government is using every bit of persuasive power to get the oil companies to lessen the impact on consumers. “Because until the deregulation law is repealed, the government is left with only persuasive powers when it comes to the price of oil,” Remonde said. “Maybe government can apply more pressure in terms of looking into their books, etc. But we leave that matter to Energy Secretary (Angelo) Reyes,” he said.

An even bigger problem for consumers than the increase in fuel prices was the shortage in the supply of LPG in the market. Reyes had repeatedly asserted a sufficient supply of LPG in the market, but consumers continue to complain about their inability to buy this basic need. Reyes conceded the need for legislation to regulate and penalize LPG hoarding.

Proposals were filed during the previous Congress seeking to revive the licensing function of the Department of Energy (DOE) scrapped by Republic Act 8479 or the Oil Deregulation Law.  By restoring the function to grant license to operate to LPG suppliers, Reyes said the DOE could ensure that only compliant LPG industry players can engage in the business. Under the current regulatory framework, LPG players only submit a notice prior to engagement and other requirements.

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