Palace says it's time for Congress to review oil deregulation law

Malacañang on Tuesday said it is already time for Congress to look at the oil deregulation law, following the steep increase in the prices of fuel with the global supplies hit by the ongoing conflict between Russia and Ukraine.

In an ANC interview, Acting Cabinet Secretary Melvin Matibag said the Department of Energy (DOE) and the Department of Finance (DOF) are set to discuss with President Rodrigo Duterte on Tuesday night the call to suspend the fuel excise tax following the fuel price hikes implemented weekly.

“I think tonight, when the President meets with the Cabinet members, a more solid decision and a more compelling answer will be given to the public. I think tungkol sa [about the] oil subsidy will already be out after that meeting,” he said.

“The President also mentioned that they might call for an emergency session for the Congress. There should be some legislation to address this looming problem,” he added.

On Tuesday, oil firms implemented another major price hike, marking the 11th straight week of increases with domestic pump prices already hitting P84.55 per liter in select areas across the country. Prices per liter of gasoline went up by P7.10, diesel by P13.15, and kerosene by P10.50 effective March 15.

Asked if there is anything Duterte could do to delay this increase, Matibag said, “I’m sure it’s in the agenda of the President later today when they will meet with the Cabinet. But the problem is alam naman natin na [we know that] there’s an oil deregulation law that’s been a problem a long, long time ago. So, it should be addressed.”

“Siguro [maybe] what should we do with this problem is to amount with a solution. Not only a short-term solution but a long-term one. Maybe time for Congress to take a look at the oil deregulation law if it still serves the public interest,” he added.

Malacañang earlier called on Congress to review the oil deregulation law, particularly the provisions on unbundling the price and the inclusion of the minimum inventory requirements in the law, as well as giving the government intervention powers or authority to intervene when there is a spike and/or prolonged increase in the prices of oil products.

Under the law, formally known as the Downstream Industry Deregulation Act, government control is removed to help oil companies become more competitive with their supply and pricing of petroleum products.

Meanwhile, Oil Industry Management Bureau director Rino Abad said the DOE is also seeking that the oil deregulation law be amended as part of its proposal that local oil firms be mandated to keep a minimum inventory on a per product and per depot basis. —KG, GMA News