HOUSE Ways and Means Committee Chairman and Marikina 2nd District Representative Miro Quimbo is calling for a review of the Oil Deregulation Law to help the government better manage the impact of global oil price shocks fueled by the ongoing conflict in the Middle East.
During Monday’s committee hearing into the proposed suspension of the excise tax on fuel products, Quimbo said a review of this measure is in order to empower the government to take the necessary measures that will cushion the effects of the continuing increases in pump prices.
“Kung walang power ang gobyerno para i-regulate ang presyo, ibig sabihin kailangan natin i-review ang oil deregulation law para magkaroon kayo ng power to be able to enforce especially in extraordinary times,” the lawmaker said.
Formally known as the Downstream Industry Deregulation Act of 1998, the law removes government control to help oil companies become more competitive with their supply and pricing of petroleum products.
Quimbo, however, pointed out that the implementation of the staggered fuel price increases is only an agreement between the Department of Energy (DOE) and the oil companies and does provide any sanction under the law should an oil firm step away from the deal.
“Kung ano man ‘tong lumalabas na usapin na dapat hanggang dito lang, dapat staggerd, lahat ito it’s a modus vivendi, parang informal na usapan between the DOE and the big oil companies, tama? At tinatalaga ninyo ito pag Tuesday para mas predictable? Pero in reality, pwede nilang hindi sundin ‘yan, tama?” Quimbo said.
“So, halimbawa mayroon kayong nailagay na diyan na dapat ito lang ang presyo at pag may nahuli tayo o may nakita tayo na mas mataas ang pagbenta, wala tayong karapatan under the law para parusahan sila at sabihin na they’re in violation of a specific law,” he added.
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