INTRODUCTION
We sign another landmark economic law today — Republic Act No. 8479 also known as the Downstream Oil Industry Deregulation Act of 1998.

Congress has insured that this entirely new law is bereft of the infirmities cited by the Supreme Court in its decision last year. At the outset, we cite the outstanding leadership of both houses of Congress for vigorously pursuing its passage despite the delaying tactics of oppositors of this law.

After more than twenty-years of a regulated environment in the downstream oil industry, the country now enters a new chapter in realizing government’s overall liberalization program that will make the private sector the main engine for national growth in a truly level although competitive playing field. The interest of the consuming public is the primordial concern of this new law.

In its main decision (Decision of 5 November 1997, P. 38), the Supreme Court categorically stated that it did not disagree with deregulation as an economic policy. And in the resolution denying the motions for reconsideration (Resolution of 3 December 1997, P. 21), the High Court reiterated that it “did not condemn the economic policy of deregulation as unconstitutional”. The Supreme Court further stressed that it is not its “will to return even temporarily to the regime of regulation” for such a regime has “pernicious consequences”. The court even added that “congress can block the revival of the status quo ante or stop its continuation by immediately enacting the necessary remedial legislation” (Resolution, P. 21).
SALIENT FEATURES OF R.A. 8479
Republic Act No. 8479 is this remedial legislation to continue the deregulatory measures we must adopt for this very vital industry.

Our public is assured that the constitutional parameters set by the supreme court are upheld in this law. The High Court clarified that “there is no impediment in enacting RA No. 8180 minus its provisions which are anti-competition” (Resolution, P. 21). This new law even went further than that.

First, in consonance with Executive Order No. 461, Series of 1997, a single and uniform tariff duty of three percent (3%) is imposed and collected on both imported crude oil and imported refined petroleum products. While this provision assured the public of adequate supply of refined petroleum products at a substantial reduction of tariff duties, it also allows existing new and potential players to import and compete with the major oil companies in this country.

Second, the new law does not require industry players a minimum inventory, thereby eliminating a basic barrier that has hampered the entry of new players.

Third, to ensure fair competition and prevent cartels in the industry, anti-trust safeguards are explicitly provided which prohibit cartelization and give a more precise characterization of predatory pricing, consistent with and adopted by the supreme court in its resolution.

Fourth, as the supreme court was quite explicit that the new oil deregulation law could do away with the transition phase and start full deregulation upon the effectivity of the law, congress has authorized the president to determine the date of full deregulation earlier than the five-month transition period, except for the following products: liquefied petroleum gas (LPG), kerosene and regular gasoline, which are socially sensitive items — meaning that a large majority of our population depend upon these for their daily needs and livelihood. As aptly suggested by the Supreme Court, this is a judgment call of Congress.
A NEW CHAPTER IN DEREGULATION
To date, at least thirty-two (32) new players are covered and benefited by this deregulation. They are engaged in gasoline stations, fuel bulk marketing, bulk marketing/refilling of LPG, bunkering, and transshipment/storage. There will be, I am sure, more to follow — all to the benefit of the consuming public because of the new competitive environment, and the higher attractiveness of the Philippines resulting from the level playing field.

To implement RA 8479, the Department of Energy (DOE), in coordination with the Energy Regulatory Board (ERB), the Departments of Environment and Natural Resources (DENR); Foreign Affairs (DFA); Labor and Employment (DOLE); Health (DOH); Trade and Industry (DTI); as well as the National Economic and Development Authority (NEDA) and the Technology and Livelihood Resource Center (TLRC) shall jointly formulate and issue the necessary implementing rules and regulations within sixty (60) days from the effectivity of this law.

Moreover, within one (1) month, the ERB shall conduct public hearings in the formulation of the automatic pricing formula for the wholesale posted prices of petroleum products.

Additional features of the law that will further protect and promote public interest include:

1. Institutionalizing the concept of government intervention and private suits to address the problem of anti-trust violations;

2. Requiring oil refiners to list their shares and offer ten percent (10%) thereof to the public through the stock exchange. This requirement fosters more transparency and accountability on the operations and pricing policies of oil refiners, because a publicly-listed company is required to disclose its quarterly financial statements, profit margins and pricing strategy; and,

3. Enhancing the data-gathering powers of the Secretary of the Department of Energy.
OTHER REFORM FEATURES
Even with the outstanding points of this law, we must emphasize that RA 8479 is not a panacea to prevent oil price increases. Whether in a deregulated or a regulated environment, market forces are the prime determinants of upward or downward price movements.

What this new law guarantees is that our people will not suffer from a dearth of supply even as they enjoy a wider variety of choices, and that collusion and price-fixing and supply-manipulation among our oil companies will be prevented.

These are the safety nets that protect the consuming public, and our insurance that the newly-deregulated oil industry will remain a major positive contributor in our moves to pole-vault the economy out of the current regional economic turmoil.

As an extra added value, RA 8479 signals our completion of the conditionalities imposed upon us by the International Monetary Fund (IMF). With it, we prove to the whole world our ability to fulfill our international commitments. If there is proof of political will on the part of the Ramos presidency or of any other Philippine presidency, let this new oil deregulation law be the proof of that, and let it be tested before the consuming public — our people, who are our court of last resort.

This proof, as you all know, is crucial in our negotiations for new arrangements that will enable us to steer the country more effectively through this economic crisis and back to the path of growth.
LOCAL LAWS WITH NATIONAL IMPACT
We also sign into law today RA 8480 transforming the town of Urdaneta in Pangasinan into a city. As I have often said, the transformation of town into cities are not only indicative of continued growth and the improvement of social, educational and cultural amenities but also of the desire of the residents to avail of more efficient services from their local officials. These new cities are Passi in Iloilo, the city of Tagum and the island Garden city of Samal both in Davao, Ilagan in Isabela and Calapan in oriental Mindoro.

I also share the happiness of the people of Camiguin, an island province — small but with great potential — over the creation of the Camiguin School of Arts and Trades from the Mambajao National High School under RA 8481; the upgrading of its provincial hospital into Tertiary-II Level under RA 8482; and the grant of legislative franchise for the local operations of the Camiguin Telephone Cooperative through RA 8483. With these improved facilities, there should be no way for Camiguin to go but up.
CONCLUSION
As we sign into law this batch of additional laws passed by the 10th Congress, let us acknowledge the tremendous efforts that each author, sponsor, committee chairman and bicameral committee member had to put in for each of the hundreds of laws that have been passed since 1995.

The heated debates and the occasional bickering among our legislators notwithstanding, the 10th Congress and the 9th Congress before it have been the most productive of all our Congresses of the past. We give rousing applause to the leadership of the House — speaker Jose de Venecia — and of the Senate — Senate President Neptali Gonzales, as well as former Senate Presidents Ernesto Maceda and Edgardo Angara before him — who served as pivot points in ensuring the passage of the critical laws that enabled the country to start pole-vaulting vigorously into the new millennium.

I have scheduled a daily series of bill-signing ceremonies over the next few days to highlight the role of and give credit to the legislature in charting our new path to development during my administration. It is important for our people to recognize that without the enabling laws passed by Congress, the measures taken by this administration would have not been as effective.

I look forward to seeing you again tomorrow as we sign another batch of laws to enable the Filipino people to cope with the challenges of the future. Once more let me express on behalf of our government and the Filipino people my sincere thanks to the men and women of the house of representatives and the senate who have made possible the passage of all of these new reform and structural laws, especially the much-awaited oil industry deregulation law.

Maraming salamat at hanggang sa muli, mabuhay kayong lahat!