1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _____ 
---------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. FRANCE L. CASTRO,  
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,  
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL 
---------------------------------------------------------------------------------------------------- 
AN ACT INSTITUTING THE UNBUNDLING OF PRICES IN THE SALE OF 
PETROLEUM PRODUCTS BY THE DOWNSTREAM 
OIL INDUSTRY IN THE PHILIPPINES 
EXPLANATORY NOTE 
Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 is a 
failure. 
For more than 20 years since its enactment, R.A. 8479 failed to fulfill its promise to 
“ensure a truly competitive market under a regime of fair prices” through the liberalization 
and the deregulation of the local downstream oil industry. Not even the pandemic crisis can 
stop oil price hikes. This year alone, from January 4 to June 21, 2022, gasoline price 
increases have totaled to P29.8 per liter; diesel, P44.25; and kerosene, P39.65. 
To begin with, R.A. 8479 had the wrong premise that the world pricing of petroleum 
and petroleum products is fair and justifiable. Coupled with a lack of knowledge on all data 
like the actual cost of fuel, the Philippine government became  incapable of determining 
predatory pricing and overpricing. This is the tragic folly of deregulation. 
From the very beginning, R.A. 8479 was bound to fail in implementing fair prices 
since it ignored monopoly-pricing practices and cartel behavior by the giant transnational oil 
corporations. Worse, deregulation had given transnational oil corporations even more room 
to manipulate prices through automatic oil price hikes (OPH); less transparency in pricing, 
profits, and operations; and virtually no accountability to the consuming public. 
Petroleum is a sensitive commodity, since its price directly affects the cost of almost 
all other commodities and services, including essentials such as food, housing, social 
services, as well as transportation.  Deregulation has allowed oil price increases to go 
unchecked. Deregulation has given transnational oil corporations even more leeway to 
influence the country’s cost of living, livelihood, business and commerce, employment, and 
the National Budget. 
There is a pressing need to interdict the hidden and unchecked transfer-pricing 
August 2, 2022
4:40 pm
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between oil company subsidiaries, including probable price-padding in the sale of petroleum 
and petroleum products between refiners and local subsidiaries, to protect the majority of 
Filipinos from current runaway increases in oil prices.  
 
 
Since 2017, Bayan Muna, along with other progressive groups and organizations had 
been demanding for the oil pricing data from oil companies in numerous hearings in 
Congress but to no avail. They argue that there is nothing confidential about the actual cost 
of producing oil. But these data would have capacitated the government in protecting the 
consuming public from the abuses of the oil companies. Furthermore, deregulation has been 
here for 20 years and the consumers could have overpaid billions of pesos in overpriced 
fuel. 
 
 
Bayan Muna Partylist Representatives Carlos Zarate, Ferdinand Gaite and Eufemia 
Cullamat first filed this measure during the 18th Congress as House Bill No. 10386 to 
institutionalize the unbundling of oil prices in the downstream oil industry in the Philippines. It 
is merely pursuant to the powers of the Department of Energy (DOE) and the DOE 
Secretary1 which among others, are to monitor both the international and domestic price 
movements of petroleum products and require persons or entities engaged in a particular 
activity of the industry to file an annual or special report, or both in such form as the 
Congress and or the Secretary may prescribe. 
 
 
Thus, immediate passage of this bill is earnestly sought. 
 
 
Approved, 
 
 
 
___________________________ 
REP. ARLENE D. BROSAS 
Gabriela Women’s Party 
 
 
 
 
     __________________________  
      __________________________________ 
         REP. FRANCE L. CASTRO 
 
 
REP. RAOUL DANNIEL A. MANUEL 
            ACT Teachers Partylist 
 
                           Kabataan Partylist 
 
  
 
 
                                                 
1 Section 14 (a) and Section 15 (b) (i), Chapter IV of Republic Act (R.A.) No. 8479 or the “Downstream Oil 
Industry Deregulation Act of 1998”   


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL No. _____ 
---------------------------------------------------------------------------------------------------- 
Introduced by  
ACT Teachers Party-List Rep. FRANCE L. CASTRO,  
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,  
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL 
---------------------------------------------------------------------------------------------------- 
AN ACT INSTITUTING THE UNBUNDLING OF PRICES IN THE SALE OF 
PETROLEUM PRODUCTS BY THE DOWNSTREAM 
OIL INDUSTRY IN THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Republic of the Philippines 
in Congress assembled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1. Short Title. – This Act shall be known as the “Unbundling of Oil Prices Act of 
2022.” 
SECTION 2. Declaration of Policy. – It is enshrined in the 1987 Philippine Constitution that 
“the State shall promote social justice in all phases of national development” (Article II, 
Section X) and “shall pursue a trade policy that serves the general welfare and utilizes all 
forms and arrangements of exchange on the basis of equality and reciprocity” (Article XII, 
Section XIII). 
Moreover, the Constitution also mandates that, “the State shall regulate or prohibit 
monopolies when the public interest so requires. No combinations in restraint of trade or 
unfair competition shall be allowed” (Article XII, Section XIV). 
Consistent with the foregoing, crude oil and socially and economically sensitive refined 
petroleum or petroleum products, being vital to national security and their supply at 
reasonable prices being essential to the general welfare, it is hereby declared to be the 
policy of the State to ensure transparency in every aspect of the oil trade to come up with 
reasonable prices in such products. Moreover, it is hereby declared a policy of the State to 
protect the public interest against monopoly and unscrupulous practices that affect the rates 
and services in the oil industry. 
SECTION 3. Scope and Coverage. – The provisions of this Act  shall apply to any person 
or entity in any or all of the activities covered under Section 5, Chapter 2 of R.A. 8479, 
specifically on the sale of the following petroleum products: gasoline, automotive and 
industrial diesel, kerosene, jet fuel and aviation gas, and household and automotive 
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Liquefied Petroleum Gas (LPG). 
 
 
ARTICLE II 
PRIOR NOTICE ON PRICE ADJUSTMENT AND IMPLEMENTATION 
 
SECTION 4. Prior Notice Requirements. – For liquid fuels, Oil Companies shall notify the 
Department of Energy (DOE) not later than three o’clock in the afternoon (3:00 PM) of the 
day before the Implementation Day for any price adjustment (either increase or decrease) or  
no adjustment, and prior to any public announcement thereof.   
 
For LPG, Oil Companies shall notify the DOE not later than the end of every month for any 
price adjustment (either increase or decrease) or no adjustment, and prior to any public 
announcement thereof.  
 
SECTION 5. Implementation Day. – For the purpose of effective monitoring thereby 
avoiding possible confusion among stakeholders and consumers, the price adjustment for 
liquid fuel may preferably be implemented beginning every Tuesday of the week and 
applicable for the next seven days (Tuesday to the next Monday) and for LPG, beginning 
every first day of the month and applicable for the whole month. 
 
 
ARTICLE III 
FORM AND CONTENT OF PRICE ADJUSTMENT PRIOR NOTICE 
 
SECTION 6. Short Message Service (SMS). – Oil Companies shall strictly comply with a 
notice sent via SMS message with the following conditions: 
 
a) the SMS is sent by the authorized representative of the Oil Company; 
b) the message is sent to the Director, Assistant Director, and the Division Chief of the 
Oil Industry Competition and Monitoring Division of the Oil Industry Management 
Bureau (OIMB) and duly acknowledged by any of them; 
c) the Committee Secretary of the Congress Energy Committee 
d) the message is sent strictly within the timeframe specified in Section 4, Article II of 
this Act; and 
e) the message shall include the list of products and their corresponding price 
adjustments (increase or decrease) or no adjustment and the summary of reasons 
explaining the same. 
 
SECTION 7. Formal Notice. – A formal notice to the OIMB sent through electronic mail 
(oimbpricing@doe.gov.ph and oimbpricing@gmail.com) and the Congress Energy 
Committee through (cttee_energy@yaho.com) of any price adjustment (increase or 
decrease) or no adjustment shall be required with the following conditions:  
 
a) the formal notice is sent by the authorized representative of the Oil Company; 
b) the formal notice is sent to the OIMB addressed to OIMB Director with attention 
to the Division Chief of the Oil Industry Competition and Monitoring Division and 
duly acknowledged by any of them; 
c) the formal notice is sent to the Congress Energy Committee addressed to the 
Committee Chairman with attention to the Committee Secretary and duly 
acknowledged by any of them; 
d) the formal notice is sent strictly within the timeframe specified in Section 3, 
Article II; and 
e) the formal notice shall be compliant to the contents provided for in Article IV 
below. 


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ARTICLE IV 
UNBUNDLED PRICE ADJUSTMENT 
  
SECTION 8. Unbundled Price Adjustment. – The Oil Companies shall strictly comply with 
the submission of the formal notice within the timeframe as specified under Section 4, Article 
II of this Act to OIMB and Congress for any price adjustment or no adjustment of petroleum 
products subject of sale on a per liter and per product basis for liquid fuel and automotive 
LPG and on a per kilogram basis for household LPG. Provided, That, the formal notice shall 
contain the detailed computation with corresponding explanation and supporting documents 
on the cause/s or reason/s of the movement of the individual unbundled price adjustment 
item as provided for in the format below: 
 
a) International Content 
i. 
Import Cost (crude or finished product); 
ii. 
Freight Cost; 
iii. 
Insurance; and 
iv. 
Foreign Exchange Rate 
 
b) Taxes and Duties 
i. 
Duties; 
ii. 
Excise Tax; 
iii. 
Value Added Tax; and 
iv. 
Other Imposts 
 
c) Biofuel Cost 
 
d) Oil Company Take Components 
i. 
Port Charges; 
ii. 
Refining Cost (for crude); 
iii. 
Storage Cost; 
iv. 
Handling Cost; 
v. 
Marketing Cost; 
vi. 
Transshipment Cost; 
vii. 
Other Cost; and 
viii. 
Oil Company Profit Margin 
 
 
ARTICLE V 
UNBUNDLED OIL COMPANY PRICE AND LIQUID FUEL RETAILER’S PUMP PRICE / 
HOUSEHOLD LPG DEALER’S PICK-UP PRICE 
 
SECTION 8. Report. – 
 
a) Oil Company. – Within two (2) months after the effectivity of this Act, oil companies shall 
be required to submit a report to the OIMB, on a per liter and per product basis for liquid fuel 
and automotive LPG and on a per kilogram basis for household LPG, containing the detailed 
computation with corresponding explanation and supporting documents on the unbundled 
items comprising the Oil Company Price as provided for in the format below: 
 
A. Oil Company Price 
1. International Content 
a) Import Cost (crude or finished product); 
b) Freight Cost; 


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c) Insurance; and 
d) Foreign Exchange Rate 
 
2. Taxes and Duties 
a) Duties; 
b) Excise Tax; 
c) Value Added Tax; and 
d) Other Imposts 
 
3. Biofuel Cost 
 
4. Oil Company Take Components 
a) Port Charges; 
b) Other Imposts; 
c) Refining Cost (for crude); 
d) Storage Cost; 
e) Handling Cost; 
f) Marketing Cost; 
g) Transshipment Cost; 
h) Other Cost; 
i) Oil Company Profit Margin; a 
j) Total Oil Company Price 
 
The above report shall remain as a continuing requirement of the downstream oil industry 
and strict compliance shall be required using the price as of December 31 of every year 
thereafter, and shall be submitted to the OIMB and Congress on or before February 28 of 
the succeeding year. 
 
The same report for a specified period and in the format provided above shall be submitted 
whenever required by the DOE or by the DOE-Department of Justice (DOJ) Task Force for 
purposes of investigation. Nothing in this Act however prevents the DOE-DOJ task force to 
enforce the submission of other reports which it may deem necessary for the performance of 
its mandate. 
 
b) Liquid Fuel (LF) Retail Outlet Price (Pump Price), LPG Refiller’s Pick-Up Price, and 
LPG Dealer’s Pick-Up Price. – Whenever required by the DOE or by the DOE-DOJ Task 
Force, LF Retail Outlets, LPG Refillers and LPG Dealers shall submit to the OIMB and 
Congress an unbundled computation with corresponding explanation of the price per liter of 
all liquid fuel and automotive LPG and price per kilogram for household LPG sold for a 
specified period and in the format provided below: 
 
1. Oil Company Price; 
2. Hauler’s Fee 
3. Taxes; 
4. Fixed Cost; 
5. Variable Cost; 
6. Profit Margin; and 
7. Total LF Retail Price or LPG Refiller’s/Dealer’s Pick-up Price 
 
LPG Dealers shall use the same computation format above. However, the appropriate price 
for item no. 1 shall be either the Oil Company Price or Refiller’s Pick-Up Price depending on 
where the LPG is sourced. Nothing in this Act however prevents the DOE-DOJ task force to 
enforce the submission of other reports which it may deem necessary for the performance of 
its mandate. 
 


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SECTION 9. Price Display Board. – For the awareness and information of the public, all LF 
retail outlets, LPG Refillers and Dealers shall display prominently and conspicuously 
updated prices in their display boards as required by existing DOE Circulars. 
 
 
ARTICLE VI 
FINAL PROVISIONS 
 
SECTION 10. Penalties. – (a) Any person who violates any of the provisions of this Act shall 
suffer the penalty of three (3) months to one (1) year imprisonment and a fine ranging from 
Fifty thousand pesos (P50,000.00) to Three hundred thousand pesos P300,000.00).  
 
Whenever any of the violations described above is committed by a corporation or 
association, the president and each one of its agents or representatives in the Philippines in 
case of a foreign corporation or association, who shall have knowingly permitted or failed to 
prevent the commission of such offense, shall be held liable as principals thereof. 
 
(b) In addition to the preceding penal provision, the DOE and Congress shall have the power 
to suspend or cancel the acknowledgement to engage in any activity in the Downstream Oil 
Industry, the Certificate of Compliance or the Standard Compliance Certificate, respectively, 
of the non-compliant Oil Company, LF Retail Outlet, LPG Refiller and Dealer thereby 
suspending or cancelling the further processing of any application or request to the DOE in 
relation to its downstream oil operations.  
 
(c) The DOE may further recommend to the proper government agency the suspension or 
revocation or termination of the business permit of the non-compliant oil company or LF 
Retail Outlet, LPG Refiller and Dealer. 
 
SECTION 11. Release of Data. – Release of data submitted by the Oil Companies to the 
DOE and Congress pursuant to this Act shall be subject to and in accordance with the 
following: 
 
1. Section 15 (g) of Republic Act (R.A.) No. 8479 or the “Downstream Oil Deregulation 
Act of 1998;” 
 
2. Section 4 of Executive Order No. 2, Series of 2016 or the “Operationalizing in the 
Executive Branch the people’s constitutional right to information and the state 
policies to full public disclosure and transparency in the public service and providing 
guidelines therefore;” and 
 
3. Section 1 (5) (c) of the “DOE People’s Freedom of Information Manual.” 
 
SECTION 12. Implementing Rules and Regulation. – The DOE shall formulate and issue 
the necessary implementing rules and regulations within thirty (30) days after the effectivity 
of this Act. 
 
SECTION 13. Amendatory and Repealing Clause. – All laws, decrees, executive orders, 
resolutions, revenue regulations, ordinances or circulars inconsistent with the provisions of 
this Act are hereby repealed or modified accordingly or declared null and void and 
inoperative.  
 
SECTION 14. Separability Clause. – If, for any reason, any section or provision of this Act 
is declared unconstitutional or invalid, such other sections or provisions not affected thereby 
shall remain in full force and effect. 
 


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SECTION 15. Effectivity. – This Act shall take effect fifteen (15) days upon its publication in 
the Official Gazette or in a newspaper of general circulation.  
 
Approved,