Oil policies, deregulation draw scrutiny amid price spikes

Government policies on energy are under renewed scrutiny as officials and analysts flagged structural gaps, deregulation issues, and weak oversight amid persistently high fuel prices.

Former Department of Energy Undersecretary Astra Pimentel-Naik said incomplete implementation of devolution policies has limited regulatory control and allowed oil firms to raise prices with minimal intervention.

“They allowed the oil companies to raise prices,” she said, pointing to Executive Order 138, which expanded the fiscal autonomy of local government units (LGUs) under the Mandanas ruling.

Pimentel-Naik said the measure was intended to give LGUs greater authority, including potential roles in energy regulation, but remains only partially enforced.

“Local governments should have the power to regulate even oil,” she said.

At the same time, the Department of Energy’s directive requiring oil firms to unbundle fuel prices drew support from Bayan Muna, which said the move could expose possible price manipulation.

‘Black box’

“This is a victory for the public’s right to information and a necessary step toward exposing possible price manipulation and excessive profit-taking,” Bayan Muna chairperson Neri Colmenares said.

He added that fuel pricing has long been treated as a “black box,” but stressed that deeper reforms are needed, including the repeal of the Oil Deregulation Law.

But Senator JV Ejercito echoed concerns, describing the country’s energy problems as partly “self-inflicted,” citing policies such as the Oil Deregulation Law and the Electric Power Industry Reform Act.

“They had good intentions… to lower the price of oil and electricity. But what happened? It’s the opposite,” he said.

Ejercito also warned that the Philippines’ heavy reliance on imported fuel and coal continues to drive up costs, while gaps in information reaching policymakers may hinder effective decision-making.

“You need to tell him the truth… so he can make the right decision,” he said.

Energy Secretary Sharon Garin earlier said the government is studying the suspension of fuel excise taxes, with a rollback expected this week, including a possible P20.89 per liter cut in diesel prices.