65 to P54. There are five (5) market structures that are given here specifically: (1) Perfect Competition; (2) Monopoly; (3) Natural Monopoly; (4) Monopolistic Competition; and (5) Oligopoly. Statement of the Problem The 1987 Constitution has entailed the adaptation of an implicit competition policy framework which refers to all laws, government policies and regulations aimed at the establishment and maintenance of competition that aims to promote, advance, and ensure competitive market conditions by the removal, as well as to redress anti-competitive results of, public and private restrictive practices. House Bill (HB) 255 claimed the inaction of the government, specifically the Department of Energy (DOE), even if faced by such oil price adjustments. 12. The petition of Rep. Garcia regarding the unconstitutionality of Sec. Deregulation and other measures are used in order to promote economic efficiency. This law amends certain sections of PD 87, offering improved fiscal and contractual terms to service contractors with special reference to deepwater oil exploration. This assumption will be studied later on. Then, it would bring about a free interaction of market forces that would eventually lead to hindrance of fair competition in the market. The law seeks to attain “a truly competitive market that runs with fair prices and a suitable supply of environmentally-clean and high quality petroleum products. we might edit this sample to provide you with a plagiarism-free paper, Service A review of the Philippine Tariff Commission’s statement regarding the competition policy will be used in order to have knowledge on market industries, deregulation, and competition laws in the country. 8479. The OIC can fix prices of petroleum products, control … The last three solutions presented explored what the government can do beyond tweaking the legal provisions of deregulation. Up until now, the big three have remain to be most profitable in the market. In October 1997, because of a strike, the Supreme Court issued a temporary restraining order (TRO) against the law and, eventually, deemed as unconstitutional in the decision being discussed earlier on. On another note, a law may be good on paper but not in practice. Lastly, because of the hastened transition, he pointed out that Sec. The Oil Price Stabilization Fund (OPSF) was then created,2 in 1984, as a buffer against the fluctuations in oil prices. The first topic covers the Competition Policy framework of the 1987 Constitution. Dr Jello. AN ACT DEREGULATING THE DOWNSTREAM OIL INDUSTRY AND FOR OTHER PURPOSES. Whether direct or indirect, whatever policy the government shall take will have an advantageous or disadvantageous effect. Historically, the Philippine oil industry has been deregulated. 6 of the R. A. In effect, Philippine legislature has been adamant in ratifying laws both in realization of this provision and the protection of consumers, examples of which are R. A. MANILA, Philippines Sen. Sherwin Gatchalian is contemplating a review of the Oil Deregulation Law to impose stricter monitoring of oil inventories and price hikes and harsher penalties for non-compliant oil companies and negligent government … First, the provisions laid down were already advantageous to the major competitors; it will give more power to the oligopoly of the big three. AN ACT DEREGULATING THE DOWNSTREAM OIL INDUSTRY AND FOR OTHER PURPOSES. 19 B. 16 Sources of market failure are also discussed, which a monopoly can cause. The DOE should give the consumers assurance on the pricing, for they are obliged to monitor increases in the gas prices from time to time. Due to an oil crisis’ occurrence in 1997, the government created the Oil Industry Commission (OIC) to regulate the goings-on of businesses working with oil. As for my personal opinion on the matter, it can be said that I am not in favor of repealing the existing law. The petition seeks to know if the new oil deregulation law is indeed constitutional and will ensure equal competitive market and welfare of its consumers. Hi there, would you like to get such a paper? Republic Act 8479 will be compared to deregulation laws in other countries. The digest also pointed out the control of foreign companies over the industry, where almost every operations in the country at the time is owned by these companies. 5 Its unconstitutionality was because of the violation against a Constitutional provision that states “the State shall regulate or prohibit monopolies when public interest so requires. This site contains quotes, articles, ebooks, and other related documents on Philippine historical studies.Philippine History Source Materials. The Philippines has removed the majority of all consumer energy subsidies, successfully phasing out price subsidies in the late 1990s as a result of wider structural reform to deregulate both the downstream oil and electricity sectors, including the removal of the country’s Oil Price Stabilization Fund and privatization of the National Power Corporation. Since then, deregulation of select economic industries, such as civil aviation, telecommunication, electric power, and downstream oil industry, have been implemented. GET YOUR CUSTOM ESSAY 3247 (An Act to Prohibit Monopolies and Combinations in Restraint of Trade), The Philippine Corporation Code Batas Pambansa Blg. If the idustry is deregulated quality of products can decline and there could be consolidation of existing providers leading to monopoly pricing of oil and gas. The literature gave the definition of an oligopolistic market and indications of anti-competitive practices. The main objective of the ODL is to promote a truly competitive market, but did the law actually do so? 18 Although there are no developed legislation relating to anti-trust and monopoly activities, a competition policy framework is a strong backbone to safeguard consumer welfare. Short Title. The first one is the goal of the oil deregulation law, to have a perfect competition in the oil market. Tinker v. Des Moines Indep. Consumers and transport groups alike have thus repeatedly called for temporary or permanent reestablishment of price controls, only to be ignored by a government firm in the belief that deregulation as part of a liberalized approach to the economy will ultimately benefit the country in the long run. Contained in a November 5, 1997 Supreme Court decision, which deemed the first oil deregulation law, the Republic Act No. The study aims to determine whether the law is constitutional: Does its provisions and effects violates the constitutional provision to achieve market competitiveness for public welfare? If, however, the opposite has been concluded and the oil deregulation is in fact deemed to attain its goals, the government must focus its energies towards ensuring that the expected benefits are actually felt by consumers. Caltex, Shell, and PNOC, or Petron, were the only three remaining oil companies in the country came 1985. With the Constitution’s anti-monopolistic agenda particularly, Sec. The first solution seemed a long shot at the moment, with the administration of President Rodrigo Duterte seeking to pass the Comprehensive Tax Reform Program (CTRP). His decision was supported by the DOE and DOF because of two reasons: (1) the prices of crude oil and petroleum products in the world market are beginning to be stable and on a downtrend since January 1998; and (2) the exchange rate of the peso in relation to the US dollar has been stable for the past three months, averaging at around P40. 10 The Oil Deregulation law was enacted to address this new framework of the Constitution. 24 And because of that, the law is a very vital and grave abuse of discretion on the part of the legislative and executive branches of government. FOR ONLY $13.90/PAGE, Deregulation of media access and rates increasing…, Comparative Analysis of the Family Code and Code of…, Planned Parenthood of Southeastern Pennsylvania v. Casey. Garcia insists that the court should consider his petition that the downstream oil industry should go back to partial deregulation, in which the main features of deregulation would be allowed but the retail prices of petroleum products would still be regulated through an automatic pricing mechanism. 8479. 8479. In reviewing the constitutionality of the Republic Act 8479, it is necessary to know what was changed from the first oil deregulation law which was the Republic Act 8180, “An Act Deregulating the Downstream Oil Industry of 1996”. SAMPLE. 8180 that was not present in the revamped R. A. He pointed out that the court’s power of judicial review should protect its people from laws that could harm their rights. To achieve this end, what must be done with the current government policy characterized mainly by Republic Act (RA) 8479? The DOE was created by virtue of RA 7638. 8479, the Downstream Oil Industry Deregulation Act of 1998, is consistent with what the constitution provides for. This law aims to expel all government control over the oil industry and is to be done within two phases. 2. Under Philippine import laws, it is the responsibility of the importer to ensure that any product entering the country’s customs territory is in full compliance with Philippine health and phytosanitary regulations. Congratulations! It is therefore in both private and public interests that the policy’s actual effect and its constitutionality be tested through empirical analyses. However, President Benigno Simeon C. Aquino himself was firm that deregulation will not be repealed, claiming that it will only create an artificial picture of low fuel prices while keeping the pressure on the resources of the government. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: CHAPTER I GENERAL PROVISIONS. 20 In this topic, a case study of the petition of honorable Enrique T. Garcia in 1999 against the 1998 Oil Deregulation Law is essential to know if R. A. 8180, to be unconstitutional1, is a brief history of the Philippine oil industry. When the government takes action, it may be any of the solutions presented or perhaps a new solution might be thought up altogether. No. 8479 February 10, 1998. He added that conviction against monopolies and combination in restraint of trade should be given legal consequence by the court. All he said points out to the question, whether or not the execution of deregulating the oil industry conflicts the mandate of free competition under section 19, Article XII of the 1987 constitution. Cmty. Contrary to expectations, diesel and other petroleum product prices have consistently risen at a seemingly accelerating rate unfair to the average Filipino. However, what must be clear is that the government must not remain doing nothing, or at least refrain from giving the public an impression of inaction to the concerns of the oil industry. DOE Circular No. And therefore, the law was processed unconstitutionally for being foul and disparaging infringement of the constitutional policy and command embodied in Article XII, Section 19 of the 1987 constitution against monopolies and combinations in restraint of trade. 19 is anti-competitive, thus it is contrary to what the constitution says. These two aspects of the legislation piece must be in harmony together in order to work. CHAPTER I GENERAL PROVISIONS SECTION 1. 26 Subsequently, respondents claim that the decorum of full deregulation is a non-justifiable issue for it involves the perception of congress and the acceleration was also recommended by the DOE and DOF because of the two conditions that were discussed earlier. 9 Part of the competition policy framework is the liberalization and deregulation of select Philippine industries such as the maritime industry, civil aviation, telecommunications, energy and utilities. While enumerating the grounds, this part will touch on the effects of the ODL to the oil industry, and to the people. REPUBLIC ACT NO. 13 Given these issues, it would seem that the oil deregulation law is unconstitutional, a fact which the paper seeks to determine. can send it to you via email. 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