The government has had limited authority to regulate fuel prices since the passage of the Oil Deregulation Law of 1998, a Department of Energy (DOE) official said at a Senate hearing on Monday.
Rino Abad, director of the DOE Oil Industry Management Bureau, said the removal of the Oil Price Stabilization Fund and the government’s exit from oil trading transferred control of pricing to private companies, leaving the DOE to monitor prices and request staggered weekly adjustments from firms.
Oil companies raised pump prices on Tuesday for the 10th consecutive week driven largely by Middle East conflict–related supply disruptions, pushing global oil benchmarks higher.
This prompted lawmakers to call on the government to urgently address rising fuel prices and their impact on commuters and the transport sector.
Senator Raffy Tulfo convened an online meeting with the DOE, Department of Transportation, and other agencies to tackle challenges faced by drivers and commuters amid consecutive oil price hikes.
Tulfo cited consumer complaints that oil companies implemented near-immediate price increases following the Middle East conflict, even while selling older “buffer stock” supplies.
He also noted that price hikes in the Philippines reached as high as 97 percent, higher than increases in neighboring countries.
Meanwhile, Senator Risa Hontiveros said more commuters are relying on public transport to cope with rising costs, while many jeepney units remain idle due to daily losses.
She said solutions should go beyond suspending excise taxes, describing the proposed P5,000 transport subsidy as a “good start” but insufficient.
“Transport cooperatives should also be assisted, as they shoulder the costs of diesel and the repayment of bank loans for new jeepneys,” Hontiveros said.
“Through the expanded service contracting program, transport cooperatives can carry out their work and operate their drivers along their routes, instead of stopping operations and relying on aid,” she added.
The senator recently filed Senate Bill No. 1986, proposing a P52.8-billion subsidy package that includes a P12-billion transport subsidy fund for drivers, delivery riders, and transportation network vehicle service operators.
Hontiveros also urged faster distribution of subsidies and the removal of bureaucratic hurdles, including the “first owner” rule affecting second- and third-hand jeepney operators.
“We should not wait until the entire transport sector is paralyzed and the prices of goods rise even further. We must work on the solutions that the people have been waiting for,” she said.
