The last three solutions presented explored what the government can do beyond tweaking the legal provisions of deregulation. Sources used in this part will cover news articles, House and Senate bills. However, in 2008 the reserve was decreased to 64 days of supply. The third solution had been in use when the, There has been a number of possible ways to make government policy on the oil industry better for the public. No. 62 and now it went up to 300% ranging from P48. And therefore, the law was processed unconstitutionally for being foul and disparaging infringement of the constitutional policy and command embodied in Article XII, Section 19 of the 1987 constitution against monopolies and combinations in restraint of trade. 8180, to be unconstitutional1, is a brief history of the Philippine oil industry. The transparency of the oil prices has been an issue for the consumers as oil price hikes have not stopped since the law was approved by the congress. Notably Petron Corp. at the top, followed by Pilipinas Shell and Chevron Corp. PNOC, operating as PETRON, was the first Philippine-owned Corporation in the market. The first solution seemed a long shot at the moment, with the administration of President Rodrigo Duterte seeking to pass the Comprehensive Tax Reform Program (CTRP). However, what must be clear is that the government must not remain doing nothing, or at least refrain from giving the public an impression of inaction to the concerns of the oil industry. It also claimed that an indefinite period of time would only discourage new players for they hoped that the price regulation would be lifted within a reasonable time. Ramos, is pro-oligopoly, anti-competitive, and is against the economic welfare of the people. Pugad Lawin and the Start of the Revolution, Reserving the nation: ROTC in the Philippines, Lessons on the Peace Process from the Pact of Biak-na-Bato, Conscious Hero or Man of No Ego? If, however, the opposite has been concluded and the oil deregulation is in fact deemed to attain its goals, the government must focus its energies towards ensuring that the expected benefits are actually felt by consumers. 2003-05-005. No. In 1977, the government created and maintained a Strategic Petroleum Reserve (SPR). The OIC can fix prices of petroleum products, control refinery capacities, license new refineries, and regulate the general operations of affected businesses. 26 Subsequently, respondents claim that the decorum of full deregulation is a non-justifiable issue for it involves the perception of congress and the acceleration was also recommended by the DOE and DOF because of the two conditions that were discussed earlier. The OIC can fix prices of petroleum products, control … This part is relevant because the grounds that will be listed can be our bases as to what our recommendations will be. This assumption will be studied later on. AN ACT DEREGULATING THE DOWNSTREAM OIL INDUSTRY, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I GENERAL PROVISIONS SECTION I. The law is formally known as Republic Act 8479, or the “Downstream Oil Industry Deregulation Act of 1998.” The DoE has been exploring ways to mandate oil companies to itemize the components of their fuel prices, including the industry’s take, for more transparency. CHAPTER I GENERAL PROVISIONS SECTION 1. Deregulation and other measures are used in order to promote economic efficiency. If the idustry is deregulated quality of products can decline and there could be consolidation of existing providers leading to monopoly pricing of oil and gas. Whether direct or indirect, whatever policy the government shall take will have an advantageous or disadvantageous effect. Anonymous. Therefore, you can buy oil when prices are low, and then use them when prices are high. The newer act retains almost everything except the unconstitutional provisions present in the previous law. Historically, the Philippine oil industry has been deregulated. The digest also pointed out the control of foreign companies over the industry, where almost every operations in the country at the time is owned by these companies. The act allowed oil companies to set their own prices. Please, specify your valid email address, Remember that this is just a sample essay and since it might not be original, we do not recommend to submit it. Issues about the oil market today, regarding possible oligopoly, predatory pricing, and consumer well-being should be taken a look at. The petition seeks to know if the new oil deregulation law is indeed constitutional and will ensure equal competitive market and welfare of its consumers. The law provides for the deregulation of downstream activities such as importation, exportation, manufacturing, marketing and distribution C. Objectives of the Study The objective of the study is to provide a more accurate assessment on the unconstitutionality of the Oil Deregulation Law. The statement by the Philippines Tariff Commission about competition policy is an evidence that the government should issue anti-competitive practices in the country. Gregorio del Pilar's Last Stand, An aerial shot of the Strategic Petroleum Reserve in Texas, Workers rally for repealing oil deregulation. Instead, the prices are kept down by ensuring adequate supply during an oil crisis. 12. If the latter is the answer, then it’s affecting the Filipino majority negatively, meaning the deregulation of the oil industry is actually unconstitutional because it violates the for-the-people essence of our constitution. The first topic covers the Competition Policy framework of the 1987 Constitution. 22 The petitioner turned his attention to the phases that happened after the approval of the R. A. 8180, which is the law discussed in the Supreme Court decision, was enacted. Republic Act (RA) 8479 was passed into law in 1998. Apparently not, as the third part will discuss the different reasons from various persons and groups why RA 8479 is unconstitutional. Contained in a November 5, 1997 Supreme Court decision, which deemed the first oil deregulation law, the Republic Act No. The focus has been on the legal basis of deregulation. Consumers and transport groups alike have thus repeatedly called for temporary or permanent reestablishment of price controls, only to be ignored by a government firm in the belief that deregulation as part of a liberalized approach to the economy will ultimately benefit the country in the long run. 29 The Supreme Court Justice at that time, Corona, thought that his petition lacked legal basis even though it seem beneficial to the public. Since then, deregulation of select economic industries, such as civil aviation, telecommunication, electric power, and downstream oil industry, have been implemented. Or in other countries as well. 8479, the Downstream Oil Industry Deregulation Act of 1998, is consistent with what the constitution provides for. Lastly, he also pointed out that reviewing the wisdom of the law is not a power of the judiciary, that power is only vested in the congress. Coverage These rules shall apply to all persons or entities engaged in any, a combination of, or all activities or business of the downstream oil industry, such as importing, exporting, re-exporting, shipping, transporting, processing, refining, The study aims to determine whether the law is constitutional: Does its provisions and effects violates the constitutional provision to achieve market competitiveness for public welfare? The focus has been on the legal basis of deregulation. The last three solutions presented explored what the government can do beyond tweaking the legal provisions of deregulation… MANILA, Philippines Sen. Sherwin Gatchalian is contemplating a review of the Oil Deregulation Law to impose stricter monitoring of oil inventories and price hikes and harsher penalties for non-compliant oil companies and negligent government … The 4% tariff differential from R. A. With Sec. Short Title. While enumerating the grounds, this part will touch on the effects of the ODL to the oil industry, and to the people. To further ensure that the rights of the consumers are protected, R. A. The Constitution provided in Section 19, Article XII that deregulation must be only allowed if the public needs such action. 27 Interposing economic arguments by the public respondents claim that price regulation is not beneficial to the public as well as to the economy. No. There was a time when the country had four refining (Bataan Refining, Filoil, Caltex, Shell) and six marketing companies (Esso, Filoil, Caltex, Getty, Mobil, Shell). In effect, Philippine legislature has been adamant in ratifying laws both in realization of this provision and the protection of consumers, examples of which are R. A. Read the rest of this entry . Lastly, because of the hastened transition, he pointed out that Sec. The exchange rate continues to be market-oriented with the BSP participating in the foreign exchange market when warranted to minimize unwanted fluctuations.RA 8479 (Downstream Oil Industry Deregulation Act of 1998) was approved on 10 February 1998. 8479 will form a task force with members of the DOJ and DOE to investigate anomalies in the deregulated oil industry. He also said that true competition exists only when there can be a sizable number of players, and at that time there was only 3% of the market share which belongs to new competitors. REVIEW OF RELATED LITERATURE INTRODUCTION The researchers will cover four important topics central to the thesis. He added that the job of the Supreme Court was just to interpret and apply the law as conceived and approved by other departments of the government in accordance with the prescribed procedure. E. Scope and Limitations of the Study. But for years it has been Petron Corp, Chevron Corp. , and Pilipinas Shell that are enjoying high market revenues. Working 24/7, 100% Purchase 21 The judicial review also pointed out provisions that will make the oil industry be more attractive to potential competitors that should support the anti-trust protection of the R. A. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I. Academic Content. Short Title. 8479 February 10, 1998. The transition period should last up to five months following the enactment of the law but with the power granted to him at that time, President Fidel V. Ramos accelerated the start of full deregulation through E. O. 8479. 17 Discussion of anti-competitive agreements are also given. Declaration of Policy. Competition policy contains actions to keep or create competiveness in economic industries, which taking away the power of the government to take control of it, is included. In that way, the goal of R. A. What makes this an alternative to the OPSF is that the country does not keep prices down by pouring in money to oil companies. For the second part of this series, read here. 19 of R. A. No. B. The big three still have 68% of the market share, which has improved from before but still with over a hundred of competitors, the number is staggering and it remains a question why the big three are still controlling the industry even with the oil deregulation law is in effect for 15 years. The first one was declared by the Supreme Court unconstitutional in November 5, 1997 for mainly three reasons. Philippine Oil Deregulation, Oil Crisis, Oil Deregulation Law, Oil Crisis in the Philippines, Oil Deregulation policy, nuclear power plant, bataan nuclear power plant, Energy crisis in the Philippines, oil speculation, crisis, philippine oil crisis, oil, marlou mumar, oil crisis, how to solve oil crisis, power crisis, power crisis in … 19, not the essence of it. In his eagerness to write history for all the people around the world, he began the. - It shall be Hi there, would you like to get such a paper? In the transition phase, all non-pricing facets were lifted. 98-03-004 Rules and Regulations Implementing Republic Act 8479, “Downstream Oil Industry Deregulation Act of 1998” Pursuant to Chapter VII, Section 23 of Republic Act 8479, “Downstream Oil Industry Deregulation Act of 1998,” the Department of Energy, in coordination with the Energy Regulatory Board, Department of Environment and Natural If you have any problems with writing, feel free to ask our writers for help! HAVEN’T FOUND ESSAY YOU WANT? Included in the interview will be possible solutions, amendments or replacements to the still-contentious Oil Deregulation Law. These two aspects of the legislation piece must be in harmony together in order to work. 8180 that was not present in the revamped R. A. 19 should be declared null and void for the transition and full deregulation should have price controls that should protect the public interest from the big three oligopoly’s price fixing and overpricing. In a budget hearing in Congress, DOE Assista – This Act shall be known as the "Downstream Oil Industry Deregulation Act of 1998. In response to the consequences of deregulation, the first three solutions presented explored what can be done with the existing law in force. Results should be disseminated and scrupulously explained to the public at large to put to rest the clashing beliefs of the two concerned parties. 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