Almost all Filipinos are in mental and emotional state over rising prices of foods and basic commodities. Above all, is the  full force jumps in the prices of petroleum products continue in the Philippines. Prices of gasoline and diesel have gone up 16 times, and by no less than P12 a liter, since last January alone.  For months now, the price of a barrel of crude oil has been rising steadily and with no signs of stopping. There has been a lot of complain and murmuring about how oil companies are reaping records profits. How they are charging the consumers without mercy. The thing is, what can the government and the people do about it?

In this case, the issue of oil deregulation law was emerged. Legislators, private and government sectors and the masses are protesting for the repeal of oil deregulation law, but Malacanang would not dare to give in.

Under the oil deregulation law (Republic Act No.8479) enacted in by the Tenth Congress in 1998, government does not interfere with the pricing, export and importation of oil products, nor the establishment of retail outlets (gasoline stations); storage depots; ocean receiving facilities and refineries, people can put up these components practically wherever and whenever they want. In the case of retail outlets, they can even set up beside or across the street each other. Provided of course the owner/operator of these installation and facility notify and give prior notice to the  Department of Energy (DoE). The location of these installation and facility conform to the zoning laws of the local government unit concerned.

 Now, what was the objective of the law?

Deregulation lets oil companies to be more competitive, effective and efficient. They are compelled to improve their service. Under a regulated set up, domestic oil companies have little reason to strive to meet world-class standards. There was no incentive for them to provide customers  with better service. However, under  a deregulated environment, the industry players would have to compete aggressively against each other for customers and consequently returns on their investments.

Meanwhile, the wake of weekly oil price hikes and skyrocketing pump prices, as reported 6 out of 1o Filipinos favored the repeal of the oil deregulation law. Results of the April 2008 Ibon survey showed that 58.6% of respondents agreed with proposal to restore government regulation of the local oil industry and repeal the oil Deregulation Act. According to them, deregulation is supposed to bring down the gas prices by offering consumers more option on where to buy their gas products from industry players.The competition was supposed to lower the price, but this has not been the case.

But would prices of gasoline and diesel be  lower if the industry was regulated or would it be higher if it was not deregulated?

 As far as I am concerned, nothing is wrong with the oil deregulation law. Repealing the RA 8479 is not the solution against the rise in oil prices. Even if the law were repealed, the Philippines will still be subjected to the same factors - a rising oil prices in the global market. Even the so-called G8+5 was trying to find solutions to a world that has gone crazy with record-breaking prices of crude oil and basic commodities, yet they summed up to a lot of talks of donations.

Hence, high pump prices in the local market are influenced mainly by the rising world oil prices and not a result  of the deregulation of the local oil industry. Prices have really gone up in the market that even if you give control to the government or the private sector, the price will still be the same.

Given the current Philippine economic situation, the Filipino people continue to struggle against poverty. Eighty percent of the population lives below the poverty line, spending only $2/day or P84 a day; and 160,000 Filipinos increase in number for every 10% hike in fuel prices. Definitely, we need more radical competition than what the oil deregulation law issue brings in. There must be a paradigm shift from Filipinos' dependency on imported oil to proven technologies like solar, geothermal, hydro and wind energy. Many countries in the world have great , untapped potential on these emerging technologies which would surely and significantly reduce  oil importations especially the Philippines, which imports 94$ of crude oil.