17 It would be a burden to all taxpayers for additional tax just for the country's oil consumption.18.
Deregulation is a good thing since it would increase competition in the oil industry. After oil deregulation law was passed, 62 new firms joined in the oil industry.19 The tighter is the competition is, the price will decrease because these companies will compete to attract consumers.20.
Deregulation method is meant to underdeveloped countries to proliferate opportunities to develop the oil industry.21 Eventually the oil companies will earn great profit to provide efficient services to the people from these opportunities. .
Practically it increases their profits since there are fewer rules to follow and fewer limitations given by the government.
C. Privatization Program as the first step of Oil Deregulation.
Privatization program is the core element in economics policy.22 Government owned properties are sold to private sectors or companies as a practical measure for certain problems.23.
This program was promoted by the I.M.F. or the International Monetary Fund to underdeveloped countries like Philippines, in order to widen the oil industry and able to pay its debts to the World Bank.24.
Its intention is to reduce public spending to cover up budget deficits caused by automatic allocation for foreign debt servicing.25 It also reorganizes the bureaucracy, which can lead into staff reduction.26.
The late president Ferdinand Marcos introduced privatization to raise more money to develop other aspects of the economy. The next administration of President Cory Aquino implemented Privatization Program as a government policy. Then the following administration of President Fidel Ramos exercises it and received praised from the I.M.F. for developing Privatization.27.
Privatization made the economy advantageous before as it encourages more investors.
The companies and industries that were privatized by the government are the Philippine National Bank, Manila Hotel, Petron and etc.