Sotto backs session to amend oil deregulation law

SENATE President Vicente C. Sotto III said the President can address high fuel prices by recalling legislators from the campaign trail via a special session of Congress, during which they will review the oil deregulation law.

Mr. Sotto, who is himself running for vice-president, said via Viber message that the Palace can summon legislators back to review the law from their campaign break, which runs until May 22.

It may take time to review the law, he said, but he expressed his willingness to do so if needed. Mr. Sotto had previously voted against the law.

President Rodrigo R. Duterte met with Cabinet members and national security officials on Tuesday to discuss the political and economic impact of the Russian invasion of Ukraine.

The Energy department has warned that diesel and gasoline prices are expected to continue rising, with a prolonged Russia-Ukraine crisis possibly pushing global crude prices to $120 per barrel, which would drive pump prices here to about P68.70 and P78.33 per liter respectively.

As of Feb. 28 when the Dubai crude price, the benchmark for much of Asia’s oil, stood at $96.89 per barrel, the prices of diesel and gas were P54.20 and P69.28, respectively.

Republic Act No. 8479, also known as the Downstream Oil Industry Deregulation Act of 1998, removed government controls on the pricing, export, and import of petroleum products, allowing market forces to dictate their prices.

Malacañang has not confirmed whether it will call for a special session to start the amendment process.

“I’m open to reviewing the Oil Deregulation Law to improve transparency among industry players and assess the benefits to our consumers. Considering that this is a 24-year-old law, the review can be helpful in optimizing the oil industry,” Senator Sherwin T. Gatchalian, who is seeking reelection, said in a statement on Thursday.

However, the Senate Energy Committee chairman said the Philippines’ real problem is overdependence on imported oil.

“We import almost 100% of our oil requirements. As long as we import oil, we will be susceptible to global oil shocks that we have absolutely no control of,” he said.

As a way forward, Mr. Gatchalian noted the need to explore for new domestic oil and gas reserves, transition to renewable energy, and promote the use of electric vehicles over the medium to long term. 

Senate Minority Leader Franklin M. Drilon, said he is open to reviewing the law to find a long-term solution that will address the impact of rising fuel prices. He added, however, that as most legislators are preoccupied with the elections, it may be difficult to be thorough while drafting amendments.

“The debates may instead be influenced by politics,” he added.

“To carry out a major policy shift in the twilight of the Duterte administration would tie the hands of the next administration. The proposal of the outgoing administration to revisit the oil deregulation law is a major policy shift that needs to be weighed carefully,” he said.

The campaign period for national candidates began on Feb. 8, while local government candidates are expected to begin campaigning on March 25. The campaign period ends on May 7, two days before the election. — Alyssa Nicole O. Tan