"PCCI should submit its proposal to the five-person review panel so that it is discussed in the context of the on-going review of Republic Act 8479 or the Downstream Oil Industry Deregulation Law," Energy Secretary Raphael P.M. Lotilla said.
But Lotilla said the DOE itself has yet to receive a copy of the PCCI proposal.
"We have yet to receive such proposal from PCCI. Any plans to revive the OPSF will have to be studied closely because the Oil Deregulation Law was passed to address the huge budget deficit incurred by the government arising from the application of OPSF," he said.
Lotilla noted that the OPSF was scrapped because of its impact on the government’s coffer.
"By the time it (OPSF) was abolished in mid-1996, the government had owed the oil companies some P5 billion," he pointed out.
The OPSF was implemented between 1987 to mid-1996 to absorb the fluctuations in crude and foreign exchange costs. This kept fuel pump prices at steady levels.
Lotilla noted that the government initially provided the seed money for the fund. Local oil companies contributed to the fund when world oil prices were low and then withdrew from it when prices were high.
He said the steep rise in world oil prices, however, depleted the fund which left the government subsidizing fuel prices.
Lotilla also urged other sectors to submit their views to the independent review panel on the implementation of the oil deregulation law.
The review committee is expected to conduct a series of consultations with various stakeholders. The schedule of the consultations is being finalized. It has 90 days to study and evaluate the law. The committee’s recommendations will then be submitted to the DOE.