Update: Government will review the law for revision and not move to scrap it.
The government has admitted that they lack the laws to effectively regulate the oil industry and because this they are seriously considering scrapping the almost decade old RA 8479 (or more popularly known as The Oil Deregulation Law.)
Add to this the heat received from the public due to the high price of LPG in the local market (despite the low price of oil in the world market) and the Department of Energy unable to find the true cause of the LPG shortage, had helped turn this bush fire into an inferno.
RA 8479 scrapped the Oil Price Stabilization Fund which acted as a buffer when the price of oil was high and allowed the entry of small oil players to make the petroleum market more competitive. It was hoped that competition among the oil retailers would benefit the consumers with regards to the price of fuel.
One reason why the government lacks any more direct influence on the price of oil is because they sold their shares in Petron last year to the Ashmore Group of UK, who then sold it to San Miguel. The government’s stake in a major oil player was one of the major options it had to keep the price of oil in check.
Aside from the scrapping of the Oil Deregulation Law, government has also hinted the enactment of anti-trust laws to keep the price of oil in check.
[source, source, source, source]
Category: Oil, Law, Oil Price
