Whichever comes first

“I told you so.” Senate President Vicente “Tito” Sotto III could only wish he can say this to Congresses past behind the passage into law that removed the government from price-fixing of gasoline, diesel and other refined crude oil products. In particular, Sotto pointed to Republic Act (RA) 8479, otherwise known as the “Downstream Oil Industry Deregulation Act of 1998.”

Almost three decades later, there is now snowballing demands and urgent calls to amend, if not repeal, this Oil Deregulation Law. For the nth time, the Philippines is reeling from the latest price shocks in the aftermath of the latest Middle East conflict that disrupted supply from major crude oil producers in the Gulf states.

Saying he was outvoted when it went through the Congress approval process in 1998, Sotto is more than willing and ready to file a Senate bill to repeal the Oil Regulation Law. “It will just be a one-paged Senate bill and I can file it right away,” Sotto told us at the Kapihan sa Manila Bay news forum last Wednesday.

Sotto was among the minority senators who voted “No” to the approval of the then proposed Oil Deregulation Law. “So I pushed for review, or a repeal of that law, so that the government can intervene in the pricing,” he explained.

Sotto, however, clarified it will take a lot of time before any law goes through the legislative mill. Surely, Sotto foresees a strong push back from those who will be affected and lobby hard against the proposed repeal of the Oil Deregulation Law.

RA 8479 was the law that liberalized and deregulated the downstream oil industry, intended to ensure true competitive pricing among players in the local oil industry. It allowed the local oil industry players to adjust the prices of gasoline, diesel, kerosene every week. Supposedly based on supply and demand in the world market for crude oil, the local oil industry players come up with cartel-like pricing, or the same amount of adjustments, whether it’s a rollback or price hike.

Among other problems it spawned through the years, the Oil Deregulation Law prevents the government from effectively intervening in the oil price setting, Sotto pointed out. Thus, Sotto has no regrets having voted against its enactment.

“Because I voted against the laws that I felt during that time will be very difficult…on our country. When I voted then I said ‘I wish I was wrong.’ Apparently it’s turning out in the end, we were right,” Sotto cited.

“Majority won but later on they realized, it’s time really to talk about this Downstream Oil Deregulation,” Sotto urged his colleagues in the 20th Congress. But this is not to cry over spilt milk, he hastily added.

A veteran lawmaker since he first entered the Senate in 1992, Sotto served multiple terms. Now 77 years old, Sotto got elected to the Senate of the 20th Congress in the May 2025 elections. A few months later, a majority of the senators voted him anew as Senate president.

Sotto is a record-holder of sorts for being elected Senate president five times.

Sotto disclosed the Senate has started the legislative process for the proposed approval of seven bills recently filed seeking to address the problems that erupted from the ME conflict. At least two or three Senate bills sought to suspend the excise tax on imported crude oil and/or to reduce or suspend the 12 percent value added tax on the sale of gasoline, diesel and other refined petroleum products.

On its public hearing later that same day, the Senate ways and means committee and the Senate committee on energy, both chaired by Sen. Pia Cayetano, agreed to endorse for plenary approval “on principle” the proposed grant of special powers. Once enacted, it will authorize the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies.

Sen. Cayetano announced at the end of the public hearing she will sponsor a consolidated version for Senate plenary debate by Monday, March 16. Since it involves tariff and taxes, the proposed law must originate from the House of Representatives.

Ahead of the Senate, the Lower Chamber approved later that night on second reading House Bill (HB) 8418, or the consolidated version of all similar House measures to grant conditional and limited emergency powers to the President.

Yesterday, President Ferdinand “Bongbong” Marcos Jr. (PBBM) certified HB 8418 as an “urgent” administration measure. As priority bill of the President, it will no longer require waiting period for its approval into law on second and third reading. This is the shortcut process, especially at a time both chambers of the 20th Congress are set to adjourn their sessions for the Holy Week recess starting March 18.

The Senate President clarified that while the lawmakers will have a one-month recess, Congress remains open in the conduct of their legislative functions such as holding public hearings or even convene the bicameral conference committee (bicam). What is not done during adjournment is holding plenary sessions, Sotto explained.

Moving forward from this latest oil price crisis, Sotto initiated a Senate bill where he proposed the establishment of a Philippine Strategic Petroleum Act. Sotto’s bill seeks to “create a state-managed petroleum stockpiling and establish oil stock inventory of at least 90 days to enhance our fight against the energy crisis.”

Sotto believes though the more immediate relief is for PBBM to just issue an Executive Order to invoke a provision of RA 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law. This law mandates the automatic suspension of excise taxes on petroleum products if the average global oil price reaches $80 per barrel for three consecutive months.

Though not included in the common legislative priority bills, Sotto promised to ensure speedy approval of the bill to grant PBBM the special powers on excise tax suspension. In the meantime, we have to wait for whichever comes first, sooner not later.