In response to the government’s threat to sue oil firms for overprice, Rep. Winnie Castelo has this to say, “Mere review of the Oil Deregulation Law will not lower oil prices, not even filing of charges against the three oil cartels cannot legally compel them to decrease their oil rates. Unless we repeal the Oil Deregulation Law, major players could always argue pegging their prices against prevailing market forces.”
The QC Solon today joins other lawmakers who moved for the repeal of the oil deregulation law amidst a series of oil price hikes perpetrated by the three big companies.
In response to proposal to review the oil pricing formula, Castelo had this to say, “A mere review of oil prices cannot lower its cost. It’s time to repeal the oil deregulation law to enable the government to regulate once again oil prices”.
Apparently, RA 8479 failed to yield the desired results of a truly competitive market that would result in fair prices and adequate supply of oil and petroleum products.
“As of now, we are at the mercy of the three big oil cartels in pegging prices of crude oil,” the QC solon pointed out. According to Castelo, many stakeholders or 6 out of 10 Filipinos already favor the repeal of the oil deregulation scheme.
“With the strong positions in the oil industry of the top 3 players, Shell, Petron and Chevron and in fact, their possible collusion to dictate prices, the intent of the RA 8479 of a free market competition is systematically defeated. We have produced oligopolies instead”, Castelo finally pointed out.
“The Filipino people in general are the principal stakeholders whenever oil prices keep on changing and therefore, government should step in to effect the necessary safeguards against cartel, monopoly and unfair market competition”, the administration lawmaker said. 30
