Metro Manila (CNN Philippines, March 15) — The House Energy Committee approved on Tuesday a measure seeking to amend the Downstream Oil Industry Deregulation Act as another round of hefty fuel price hikes took effect.
Among the changes proposed in the unnumbered substitute bill include requiring oil firms to unbundle the cost of petroleum and setting the minimum inventory requirements for fuel products.
Marikina Rep. Stella Quimbo, an economist, proposed that the substitute bill include a provision stating that the Department of Energy’s price monitoring system be based on the unbundled retail price of petroleum products.
She also suggested that the President be given the power to suspend or decrease fuel excise tax rates when the cost of Dubai crude oil based on the Mean of Platts Singapore (MOPS) pricing reaches US$80 per barrel.
Based on Quimbo’s estimates, the prices of gasoline, kerosene, and diesel have increased by 17.8%, 26.8%, and 35.6%, respectively, since February 21, 2022.
The price hikes, she said, means a jeepney driver who uses 25 liters of oil daily for 24 days monthly will have to pay an additional ₱11,880 for fuel.
“Since most, if not all, products and services use gasoline products for production and distribution, we expect inflation to increase substantially,” Quimbo added.
During the hearing, the committee also approved the motion of Bayan Muna Party-list Rep. Carlos Zarate for the panel as a whole to request President Rodrigo Duterte to call for a special session so the House can pass the proposed amendments to the Oil Deregulation Law.
