RECEIVED

Republic of the Philippines

DATE:_16 AUG 2016
HOUSE OF REPRESENTATIVES = ive Lb oven

Quezon City ay ;
SEVENTEENTH CONGRES
4 4 REGISTRATION UNIT
eater sen 04 BILLS AND INDEX SERVICE
HOUSE BILL NO.

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

The oil deregulation law and its vision of a competitive market instead rears its ugly head.
There arose instead a scheme where only three leading oil companies appear to command
the price. Thus, instead of veering away from predatory pricing that the intent of the original
law actually seeks, the opposite was the result.

It can be said that a sort of oil cartel does exist. New players will find it difficult to join the
game. The vicious pattern of price increases in oil cripples the purchasing power of the peso
on the part of end-users or consumers of oil and high quality petroleum products.

There are quarters who vent sentiment for a revisit of the regime of regulation in the oil
industry with the failure on the expectations that should have unfolded except they all did not
materialize, one way or the other. A whole community of stakeholders is pushed to the
verge of an economic cliff, nation included unless a scheme and scene do revert back to the
regulation of the oil industry.

This is the point that the humble measure seeks to address. Free competition and fair price
appear to have been replaced by cartel, monopolies and restraint of trade to a marked
degree. As a result, public interest is not best served thereby on account of practices that
are at bottom, unfair as they are inequitable.

The positive results of retail trade are yet to be seen even at this point in time tantamount to
having likewise been defeated

If the Department of Energy is perceived to have failed in the monitoring
may have been made a convenient advantage for the oil companies/whose present ad
future stock inventories are not even glanced at by the DOE-DOJ Task Force created for th
purpose.

The immediate passage of this bill is thus earnestly sought.

HOUSEOF REPRESENTATIVES


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

a
HOUSE BILL NO. 2943

Introduced by Rep. Winston “Winnie” Castelo

AN ACT
REGULATING OIL INDUSTRY THEREBY REPEALING REPUBLIC ACT NO. 8479, ALSO
KNOWN AS DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998

Be it enacted by the Senate and House of Representatives of the Republic of the Philippines
in Congress assembled:

SECTION 1. This Act shall be known as the “Oil Regulation Act of 2016.”

SEC. 2. Repeal. — Upon effectivity of this Act, Republic Act No. 8749, also known as
the Downstream Oil Industry Deregulation Act of 1998 is hereby repealed and the provision
of law amended or repealed by such Act are restored or revived as if such Act had not been
enacted.

SEC. 3. Budgetary Effect of this Act. - Under the scheme of regulation of the oil
industry, the Oil Price Stabilization Fund may not be revived thereby and instead, the
Department of Energy shall promote fair trade in the public interest.

SEC. 4. To effectively carry out the provision of this Act, the Department of Energy
shall issue pertinent rules and regulations.

SEC. 5. This Act shall take effect thirty (30) days after its publication in the Official
Gazette and in at least two (2) newspapers of general circulation.

Approved,