WHAT ARE THE EFFECTS OF OIL DEREGULATION IN THE PHILIPPINE ECONOMY.
The Philippines is presently having serious concerns with the effects brought by Oil Deregulation Law.1 As the fact that it permits oil companies to freely adjust their oil prices that led to the increase of other basic commodities and resulted to economic crisis as people defined.2 .
The underprivileged Filipinos are primarily affected of these concerns for the reason that it makes their budget tighter than before.3.
Everybody blamed it to oil deregulation law, and as a result they create massive rallies against the administration and oil companies.4.
This paper aims to inform Filipinos the reasons why the oil industry is deregulated and how it came to be. This will be beneficial to people in order to understand the impact of the oil industry in our economy.
The advantages, disadvantages and significance of Oil Deregulation will be mention in order to give the readers the effects undergone by the country. .
Lastly this paper intends to prove whether or not the method of deregulating the oil industry will improve the economy and the lives of the Filipinos or it will lead to the breakdown of the Philippine Economy. .
I. What is Oil Deregulation?.
A. Background of the study of oil deregulation.
Deregulation is a method of lifting of certain government controls such as price control on several aspects of a specific industry, specifically the oil industry.5.
Under the Oil Deregulation law or Republic Act no. 8479 enacted in by the Tenth Congress in 1998, the Philippine Government does not interfere with the pricing of export and importation of oil products, retail outlets (gasoline station), refineries, etc.6.
Previously, Oil industry was still regulated not until 1998 where government takes controls with the pricing of oil products. The government would adjust the oil price by subsidizing the original price.7Basically that is the reason why the government lifts their hands from the oil industry.