Camacho vows to protect deregulated environment

Energy Secretary Jose Isidro "Lito" Camacho yesterday vowed to protect the integrity of the deregulated environment of the oil industry by allowing market forces to prevail.

Camacho was reacting to earlier proposals to repeal the deregulation law and establish a national oil exchange. He noted that since RA 8479 or the Downstream Oil Industry Deregulation Act was passed in 1998, 62 new players have entered the market and have infused a total of P13 billion in fresh investments. In return, they have captured 10 percent of the market, Camacho said.

"Based on these yardstick, clearly the deregulation of the oil industry is working as intended. This early success, coupled with a renewed confidence in the Philippine economy, can definitely serve as a springboard for further expansion of the downstream industry," he said.

At the same time, he urged local oil players to police their own ranks to enhance transparency and help curb the proliferation of unfair trade practices.

"Government and the private sector need to work more closely together for our mutual benefit to try new approaches, to be more innovative – to fuel the country’s growth momentum in a sustainable manner," Camacho, said during the 5th general meeting and induction of the new officers of the Petroleum Institute of the Phils. (PIP).

"I am all for the spirit of healthy competition. But this can only be possible if the rules and roles are clear and the players play fair. In other words, we all have a responsibility if we want this game to last," he said.

Camacho acknowledged that any new business environment will experience some birth pains and the best way to nurture it is to allow market forces to come into play. "You can therefore set aside your apprehensions. We have no intention of fixing ‘what ain’t broken’," he said.

For its part, the DOE will continue to actively monitor industry trends to make sure retail prices in the country reflect market trends, and will keep tight watch over compliance to quality, safety and environmental standards of products and services. – Donnabelle Gatdula