MALACAÑANG has emphasized the need for a thorough study of the proposed repeal of Republic Act (RA) 8479, or the Downstream Industry Deregulation Act of 1998, to ensure the moves benefits both the economy and consumers.
The administration of President Ferdinand R. Marcos Jr. responded to growing public pressure to bring fuel pricing back under government oversight. While the Palace remains open to reform, officials stress that any major shift in energy policy must be carefully evaluated by lawmakers to avoid unintended economic disruption.
The big question
Can the National Government effectively lower fuel prices by repealing RA 8479, also known as the Oil Deregulation Law, without disrupting the national economy?
Congressional mandate
Palace Press Officer Claire Castro said the administration welcomes all suggestions to address fuel price hikes triggered by the war in the Middle East but clarified that the power to scrap or amend existing statutes rests with the legislative branch. While the executive branch provides policy direction, she said the formal process of changing the law must originate from the Senate and the House of Representatives.
Assessment of consequences
The Palace maintains that any proposal involving major economic policy shifts requires a comprehensive review before a final decision is reached. Castro said it is better that the matter be thoroughly studied, especially by lawmakers. The government aims to determine whether a return to regulation would truly provide long-term relief or if it would result in market inefficiencies. Officials are concerned that a hasty repeal could lead to fiscal complications that the country is not currently prepared to handle.
Protection of various stakeholders
The administration is looking at the potential impact of the repeal on different sectors, including the oil industry itself. While the intent of the proposed reforms is to ease the burden on consumers, Castro said unintended negative effects on various stakeholders must also be considered. If there will be a repeal of a law, it should bring overall benefit, she said. She added that if a policy change causes negative effects on the oil industries, it would ultimately not be good for the country.
Focus on sustainable solutions
President Marcos previously stated that the National Government is focused on implementing long-term solutions to address energy woes. He acknowledged that the legislative process required to amend or repeal the Oil Deregulation Law would take significant time. The Palace said policies should ultimately aim to promote the welfare of the general public while balancing industry sustainability. Castro said the study should determine what is best for the country to ensure that those interests prevail in the final policy outcome.
Implications for the public
A repeal of the law would mean the government resumes the power to set or limit the prices of petroleum products, a practice stopped decades ago to encourage competition. For the public, this could lead to more predictable pricing at the pump, but it also risks discouraging private investment in the energy sector if the government-set prices do not align with global market costs. The next steps involve a formal review by economic managers and congressional hearings to weigh these risks against the immediate need for consumer relief. / FROM PNA
