Senator Erwin Tulfo, chair of the Senate Committee on Energy, has pledged to prioritize legislation aimed at reducing fuel costs and enhancing energy security. The committee will review the 1998 Oil Deregulation Act and investigate alleged large-scale oil smuggling. Tulfo also highlighted plans for a strategic petroleum reserve to protect against supply shocks and price volatility, emphasizing the need for a more responsive and protective energy sector for all Filipinos.
Senate Committee on Energy Chairman Senator Erwin Tulfo announced on Thursday a commitment to advancing legislative measures designed to reduce fuel prices, bolster the nation's energy security, and reassess the Oil Deregulation Act.
This comes amid ongoing global oil market instability and geopolitical unrest. During the committee's inaugural hearing, Tulfo articulated that the panel's central mission is to guarantee that energy stays affordable, dependable, and adequate for households, commercial enterprises, transport operators, and industrial sectors. He emphasized that recent Middle East conflicts, rising tensions in the West Philippine Sea, and oscillations in worldwide oil prices consistently foster an environment of unpredictability for both consumers and businesses.
He explained that climbing fuel costs exert a cascading influence across the entire economy, lifting transportation expenses and pushing upward the prices of food and other essential goods. According to Tulfo, jeepney drivers, fishermen, farmers, and delivery riders are among the groups most severely impacted by the repeated surges in fuel prices. The committee's first major initiative will be to evaluate suggested revisions to Republic Act 8479, known as the Downstream Oil Industry Deregulation Act of 1998.
Tulfo observed that while the law originally aimed to encourage competition and efficiency, it must be reexamined to ascertain whether it still aligns with contemporary market conditions. He additionally spotlighted accusations of extensive oil smuggling that involve the underreporting of incoming fuel consignments. It is alleged that certain importers declare only a small proportion of the petroleum they bring into the country, thereby drastically cutting their tax liabilities while reaping significant gains from the unreported fuel.
The senator noted that the taxes remitted on the reported quantity are ultimately transferred to consumers via excise duties and value-added tax collected at retail outlets. He urged the Department of Finance and the Bureau of Customs to scrutinize the tax contributions of specific oil importers by cross-checking customs filings with documentation from their ports of origin.
The senator named Felcor Petroleum and Control Holdings Inc. at the Port of Cagayan de Oro, Smile Petroleum OPC at the Port of Cebu, and Powerfill at the Port of Batangas. Tulfo instructed the committee secretary to summon Customs authorities to the panel's subsequent hearing to address these concerns. No documentary evidence was presented during the opening statement to substantiate the claims. Neither the mentioned companies nor the Customs bureau have issued public statements regarding the allegations.
The committee will also consider bills proposing the formation of a Philippine Strategic Petroleum Reserve, also called a National Strategic Fuel Reserve. Tulfo contended that such a reserve would safeguard the nation during crises, major supply interruptions, or times of extreme oil price turbulence by maintaining a stockpile of fuel.
The proposed legislation aims to boost transparency in fuel pricing, augment government supervision of the oil sector, soften the blow of abrupt price hikes for consumers, and improve national readiness for prospective energy emergencies. He concluded that the ultimate objective is an energy industry that is robust and trustworthy while genuinely serving and shielding every Filipino citizen
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