Review the oil deregulation law? What for?

Here we go again. Just when the oil companies increased their pump prices a couple of weeks ago, they will once more increase oil pump prices this week. Of course we don’t have to tell you that with the world oil price index hitting close to a US$100 per barrel, consequently, this causes everything to rise. In truth, there really isn’t much that we can do about this situation. What we really need is for the big car companies to speed up production of their electric vehicles, many of whom will start selling this year. We hope that the Nissan Leaf will also be brought to Philippine shores.

With the recent rising prices of crude, suddenly Sen. Juan Miguel Zubiri is pushing for the immediate review of the Oil Deregulation Law saying, “The unabated oil price hike has rendered the law ineffective in keeping the prices of petroleum products at a reasonable level. It has been 13 years since the RA 8479 dubbed as “The Downstream Oil Industry Deregulation Act” was enacted. We need to revisit and review it to make it more responsive to the needs of the public.” Sen. Zubiri noted that the oil prices have been going down in the past three months. But oil prices have gone up.

If you open your TV and watch CNN, BBC or Bloomberg TV, you will get instant reports on the world prices of crude and we too keep on following this which makes me wonder where Sen. Zubiri got his reports that oil prices are going down? The last report I got was that oil prices continue to hover at a very high rate, which has a direct effect on our pump prices of fuel. It makes me wonder where Sen. Zubiri got his source?

Now, the Senate can review the Oil Deregulation Law all it wants; however, it is more than obvious to me that Sen. Zubiri got his facts all wrong, that this law was designed to keep oil prices at a “reasonable level”. In the first place, the Philippines is not an oil producing country, hence it is “hostage” to the fluctuations of the world oil prices of crude, like most countries. There really is nothing that the Philippine Senate can do to bring oil prices down except if our Senators decided to use their pork barrel to help alleviate the prices of gasoline and other fuel products.

Perhaps it is time to remind our Senators of our great fortune of having enacted the Oil Deregulation Law, which effectively spared the President of the Philippines from the great stress we had in the past where crippling mass transportation strikes were called to roll back the prices of oil whenever the pump prices of oil increases significantly.

Just a few short weeks ago, the Bolivian government decided to stop subsidizing the prices of oil in their country, hence gasoline prices increased by a whooping 73%! From 92 cents a liter (US$3.48/gal) for regular gasoline, up from 50 cents ($1.89). Such increases sent angry mobs into the streets of Bolivia’s capital La Paz, even from the core supporters of Bolivia’s first indigenous and highly-popular President Evo Morales, who was then forced to stop these proposed increases in fuel prices.

Sen. Zubiri comes from Bukidnon, hence his heart or at least his sentiments come from the South. If any, what the Senate ought to do is come up with answers to our still unanswered questions why oil prices in Cebu are the highest in the country! This is something that the Senate can tackle and decide on. At least our pump prices should be at par with that of Manila or Mindanao but as it is, we Cebuanos pay the highest in fuel cost. The biggest surprise of all, even the militant transport groups are not holding any mass actions against this obvious imbalance!

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There was a one-page ad that appeared in yesterday’s The Philippine Star by the Liberal Party (LP) on page 15, just beside where my Star column appeared and in a short message, it said “For the past 65 years, the Liberal Party has been a voice of statesmanship: Of the best minds, of the purest hearts, of the most committed public servants in the nation. We never faltered. We never wavered. We have led, and we will continue to lead through our deeds and intentions. And now, the people have rallied behind us under the banner of good governance. It is up to us to make the most of it, in the name of service to the Republic. The Liberal Party will continue to be the political backbone of reform in this country. We will move Onward, The Future is Now. Ngayon na ang Pagbabago!”

Indeed, 65 years with the Liberal Party and when Martial Law was declared, they conveniently became part of the amalgam called the KBL. When they got back power in 1986, the country was a 3rd world nation. They brag about reforms but reforms can only be had with charter changes. So, what has the Liberal Party really contributed to national development?

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