NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No. 20ft1
if&t'.i Senate
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23 APR 19 P3 :16
RtCEIVtDBV,
Introduced by Senator WIN GATCHALIAN
AN ACT
INSTITUTIONALIZING TRANSPARENCY IN THE PHILIPPINE 
DOWNSTREAM OIL INDUSTRY AND AMENDING FOR THE PURPOSE 
REPUBLIC ACT NO. 8479 OTHERWISE KNOWN AS THE DOWNSTEAM OIL
INDUSTRY DEREGULATION ACT
EXPLANATORY NOTE
In 1998, Congress enacted Republic Act No. (RA) 8479 or the Downstream Oil 
Industry Deregulation Act of 1998 which liberalized and deregulated the downstream 
oil industry in order" to ensure a truly competitive market under a regime of fair prices, 
adequate and continuous supply of environmentally-clean and high-quality petroleum 
products."1
Since the enactment of the law, there are recurring allegations that oil 
companies take advantage of supply issues and price shocks by imposing large profit 
margins leading to even higher prices of petroleum products to the detriment of the 
consumers. For example, in 2006 there were calls to check the profit margins of oil 
companies after an oil company allegedly earned large net income belying its claims 
that it has been experiencing losses.2 These are however only mere allegations as the 
public, as well as the government through the Department of Energy (DOE), is not 
aware of the profit margins oil companies make because the information is not
1 Sec. 2 of Republic Act. No. 8479.
2 Oil firms roll back LPG prices by PI more per kilo. Philstar. Available at
https://\A/ww.philstar.com/headlines/2006/03/22/327511/oil-firms-roll-back-lpg-prices-pl-more-kiio/amp/. Accessed on April 16, 
2023.


available. As an industry imbued with public interest, it is important that the public is 
confident that petroleum prices imposed on consumers are fair pursuant to the 
objective of RA 8479.
To promote transparency in petroleum product pricing, the DOE issued 
Department Circular No. DC 2019-05-008 or the Revised Guidelines for the Monitoring 
of Prices on the Sale of Petroleum Products by the Downstream Oil Industry in the 
Philippines which mandates oil companies to report their respective unbundled price 
adjustments which includes costs that contribute to changes in retail prices of the 
petroleum products.3 The circular however was not implemented after a temporary 
restraining order (TRO) and afterwards a writ of preliminary injunction was issued by 
the Regional Trial Court (RTC) pending the main petition for declaratory relief against 
the policy.4 This was after oil companies argued that the DOE does not have this power 
under RA 8479.5
This measure seeks to address this legislative gap by providing DOE the explicit 
power to require downstream oil industry participants engaged in the retail of 
petroleum products to submit information on the cost components of the pump price 
in cases where the average price of Dubai crude oil for three consecutive months is 
equal to or greater than eighty dollars per barrel. In requiring such information, the 
bill also provides limitations to the power of DOE to protect the proprietary information 
of the company. First, it explicitly enumerates information that the DOE cannot 
require. Second, it prohibits DOE from disclosing any proprietary and confidential 
information to the public and other oil industry participants without the consent of the 
oil company except In cases where a government agency requests the same in the 
performance of its functions.
Given the foregoing, the immediate passage of this measure is sought.
3 DOE appeals TRO on oil unbundling policy. Philstar. Available at
https://www.philstar.eom/business/2019/08/21/1945046/doe-appeals-tro-oil-unbundling-policy. Accessed on April 16, 2023.
4 Id.
5 DOE asks Senate to revisit oil deregulation law. Philippine News Agency. Available at 
https://www.pna.gov.ph/articles/1177189. Accessed on April 16, 2023.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S.B. No. 2081
rf ilit fan'
23 APR 19 P3:16
RKE4'.-EDBv.
Introduced by SEN. WIN GATCHALIAN
AN ACT
INSTITUTIONALIZING TRANSPARENCY IN THE PHILIPPINE 
DOWNSTREAM OIL INDUSTRY AND AMENDING FOR THE PURPOSE 
REPUBLIC ACT NO. 8479 OTHERWISE KNOWN AS THE DOWNSTREAM OIL
INDUSTRY DEREGULATION ACT
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
Section 1. Section 14 of Republic Act No. 8479 is hereby amended to read as
follows:
"Section 14. Monitoring -
(a) The DOE shall monitor and publish daily international crude 
oil prices, as well as follow the movements of domestic oil prices.
IN PURSUANCE OF THIS MANDATE, THE DOE SHALL 
HAVE THE POWER TO REQUIRE DOWNSTREAM OIL 
INDUSTRY PARTICIPANTS ENGAGED IN THE RETAIL OF 
PETROLEUM PRODUCTS TO SUBMIT MONTHLY 
INFORMATION PERTAINING TO THE COST 
COMPONENTS OF THE PUMP PRICE OF THEIR 
PETROLEUM PRODUCTS SOLD AT RETAIL FUEL OUTLETS: 
PROVIDED, THAT THE AVERAGE PRICE OF DUBAI CRUDE


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OIL, BASED ON THE MEAN OF PLATTS SINGAPORE, FOR 
THREE (3) CONSECUTIVE MONTHS IS EQUAL TO OR 
GREATER THAN EIGHTY DOLLARS (USD 80) PER 
BARREL: PROVIDED FURTHER, THAT THE COST 
COMPONENTS SHALL INCLUDE THE FOLLOWING 
ACTUAL COSTS:
1. INTERNATIONAL CONTENT SUCH AS IMPORT COSTS, 
FREIGHT COSTS, INSURANCE, AND FOREIGN EXCHANGE 
COSTS;
2. GOVERNMENT IMPOSITIONS SUCH IMPORT DUTIES, 
EXCISE TAXES, VALUE ADDED TAXES, AND OTHER 
TAXES;
3. BIOFUEL COST;
4. OTHER COSTS SUCH AS PORT CHARGES, REFINING 
COSTS, STORAGE COSTS, HANDLING COSTS, 
MARKETING COSTS, TRANSSHIPMENT COSTS, AND 
OTHER COSTS; AND
5. THE OIL COMPANY'S PROFIT.
THE DOE SHALL HAVE NO POWER TO REQUIRE THE 
SUBMISSION OF THE FOLLOWING FROM THE 
DOWNSTREAM OIL INDUSTRY PARTICIPANTS ENGAGED 
IN THE RETAIL OF PETROLEUM PRODUCTS:
1. PRICING FORMULA,
2. DETAILED COMPUTATION OF EACH OF THE ACTUAL 
COST COMPONENTS,
3. EXPLANATION AND SUPPORTING DOCUMENTS OF 
CAUSES OR REASONS OF THE MOVEMENTS OF EACH 
OF THE COST COMPONENTS, AND
4. OTHER TRADE SECRETS OR PROPRIETARY 
INFORMATION NOT REQUIRED TO BE DISCLOSED 
PURSUANT TO THIS SECTION.


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THE DOE SHALL NOT DISCLOSE ANY PROPRIETARY AND 
CONFIDENTIAL INFORMATION TO THE PUBLIC AND TO 
OTHER OIL INDUSTRY PARTICIPANTS UNLESS PRIOR 
CONSENT OF THE SOURCE OR OWNER OF SUCH 
INFORMATION HAS BEEN OBTAINED BY THE 
REQUESTING PARTY: PROVIDED, THAT PRIOR CONSENT 
SHALL NOT BE REQUIRED IF THE PROPRIETARY AND 
CONFIDENTIAL INFORMATION IS REQUESTED BY A 
GOVERNMENT AGENCY IN THE PERFORMANCE OF ITS 
FUNCTIONS: 
PROVIDED, FINALLY, THAT THE
REQUESTING GOVERNMENT AGENCY SHALL NOT 
DISCLOSE THE PROPRIETARY AND CONFIDENTIAL 
INFORMATION TO THE PUBLIC AND TO OTHER OIL 
INDUSTRY PARTICIPANTS.
It shall likewise monitor the quality of petroleum products and 
stop the operation of businesses involved in the sale of 
petroleum products which do not comply with the national 
standards of quality that are aligned with the national 
standards/protocols of quality. The Bureau of Product Standards 
of the DTI, together with the Department of Environment and 
Natural Resources (DENR), the DOE, the Department of Science 
and Technology (DOST), representatives of the fuel and 
automotive industries and the consumers, shall set the 
specifications for all types of fuel and fuel-related products to 
improve fuel composition for increased efficiency and reduced 
emissions. The BPS shall also specify the allowable content of 
additives in all types of fuels and fuel-related products.
XXX"
Section 2. Section 24 of Republic Act No. 8479 is hereby amended to read as
follows:


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"Section 24. Penal Sanction. - Any person who violates any of
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the provisions of this Act shall suffer the penalty of three (3)
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months to one (1) year Imprisonment and a fine ranging from
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Fifty thousand pesos (P 50,000.00) to Three hundred thousand
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pesos (P 300,000.00): PROVIDED, THAT, ANY
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PARTICIPANT IN THE DOWNSTREAM OIL INDUSTRY
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ENGAGED IN THE RETAIL OF PETROLEUM PRODUCTS
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WHO SHALL FAIL TO COMPLY WITH THE REQUIREMENT
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TO SUBMIT INFORMATION PURSUANT TO THE
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PROVISIONS OF SECTION 14 (A) OF THIS ACT SHALL BE
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SUBJECT TO AN ADMINISTRATIVE PENALTY
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EQUIVALENT TO A FINE RANGING FROM A MINIMUM OF
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FIVE MILLION PESOS (PHP 5,000,000.00) TO A
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MAXIMUM OF FIFTY MILLION PESOS (PHP
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50,000,000.00): PROVIDED, FURTHER, THAT ANY
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GOVERNMENT OFFICIAL WHO SHALL DISCLOSE
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PROPRIETARY AND CONFIDENTIAL INFORMATION
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CONTRARY TO THE PROVISIONS OF SECTION 14 (A) OF
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THIS ACT SHALL BE SUBJECT TO AN ADMINISTRATIVE
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PENALTY EQUIVALENT TO A FINE NOT EXCEEDING THE
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EQUIVALENT OF SIX (6) MONTHS' SALARY OR
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SUSPENSION NOT EXCEEDING ONE (1) YEAR, OR
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REMOVAL DEPENDING ON THE GRAVITY OF THE
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OFFENSE."
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Section 3. Separability Clause. - Should any provision of this Act be held
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unconstitutional, no other provision hereof shall be affected thereby.
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Section 4. Effectivlty. -This Act shall take effect fifteen (15) days after Its
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publication In at least two (2) newspapers of general circulation.
Approved,