Oil deregulation law essay

Many argue that the oil industry is an oligopoly of the big three Petron, Shell, and Caltexmeaning that they can influence the price and output of the market by themselves.

Downstream oil industry philippines

He articulated that dominant oil companies still dictate the price because even new oil industry players get their supply from the giants Sisante References Arao, D. The minimum inventory level requirement was also removed from the R. He also pointed out that to execute full deregulation depending on the number of new players would be to legislate a floating provision reliant on the happening of a conditional event. Since then, government has no longer control over the industry. To further ensure that the rights of the consumers are protected, R. However, the state of the oil industry then and now is different, and it would take a different strategy to deal with a different problem. These denunciations were done by either being direct to the point in articulating concerns about the deregulated regime or through the creative use of prevailing signs and symbols to get the message across.

Garcia in against the Oil Deregulation Law is essential to know if R. In his petition, he said that the Sec. That another woman holds the placard shown in Figure 8 is just a coincidence.

Oil deregulation law essay

All these places are only a learned few can fully clean and orderly. Even if the law is repealed, the Philippines will still be subjected to the same factors-a rise in oil prices in the global market. This has been the case even prior to oil deregulation, as may be seen on the cover of a primer on oil 99 Arao prices prepared by the PNOC in Figure 4. However, for every action, anticipate the consequences. Under the Cory Aquino administration, the Energy Regulatory Board ERB was created with the purpose of, much the same as the functions of the OIC, regulating operations of oil companies with the addition of paying the OPSF to recover the importer's expense from importing whenever there is petroleum product-deficit to temporarily adjust price levels, among others. Arao 2 That the Philippine oil industry was initially deregulated may be gleaned from its actual state in the s. Garcia pointed out four reasons for the unconstitutionality of R. In taking a stand for nationalization, various cause-oriented groups and individuals argue that this can reverse the depoliticized price setting of petroleum products by having instead a regulated pricing mechanism. The absence of conflict gives the impression that everything is in order. Lutgardo Jurcales, personal interview, January 14, This situation may explain why, at least for the government, the main personalities i. As already stated, the oil crisis is a global one and has to be addressed not only at the national level, but at the international level as well.

In this context, proponents of deregulation argue that it should be given a chance to work. They are accused of not working for the interests of the people since the latter end up shouldering the burden of increased prices of petroleum products.

Deregulation tagalog

Many believe that oil companies took advantage of the policy, hiking oil prices, but even in a regulated environment, oil prices will continue to rise. 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 ; 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 P I see that if one takes away something, another has to take its place — re-regulation. The analyses, after all, get confined to the corruption of oil companies and the current trend in world crude prices and the exchange rate i. State control would enable the industry to respond to the power and energy demand of the economy and the Arao people. The selected photographs show the direct and creative ways of promoting a culture of resistance to the deregulated regime. Another blessing experienced under a deregulated environment is protection from unusual fluctuations. Proposed solution 5 country-to-country oil agreement can address the issue of the oil crisis at the international level. These things can be solved with prohibitions or authorizations, which are few examples of solution for anti-competitive practices. As in the past, a buffer fund will still be established to stabilize the prices of petroleum products. Mainstream Media in the Culture of Acclimatization Based on the events that transpired in the past, some government officials through the mainstream media helped in announcing plans of oil companies to increase prices of petroleum products. We do not have PNOC now, and the environment is different than that of In the eyes of the powers-that-be, the complexities of the Philippine oil industry can only be understood by a learned few. More essays like this:.

Nationalizing the oil industry is tough, but Bad points are to be struck out. Second, it will block the entry of effective competitors.

deregulation of oil

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. Proposed solution 5 country-to-country oil agreement can address the issue of the oil crisis at the international level.

regulation and deregulation
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Oil Deregulation Law