An overview of progressive oil bills pending in Congress

1
Alternative Oil Bills

• An overview of progressive oil bills pending in
  Congress

2
The problem high oil prices

• In 2007, prices of gasoline increased 16 times,
  diesel, kerosene and LPG 13 times.
• Since 2001, prices of oil and petroleum products
  have increased 275.
• World oil prices are at a historic high.

3
The problem deregulation

• monopoly pricing and other unfair practices by
  foreign oil cartel
• frequent and steep price increases
• inutility of the State to protect the people

4
The solution control oil prices and reduce taxes

• Socially-sensitive oil and petroleum products
  (diesel, LPG) should be stabilized and subject to
  price controls
• Taxes on oil and petroleum products should be
  reduced or removed

5
The solution develop a strong national oil and
energy industry

• Owned and controlled by Filipinos
• Regulated, with the State as a major player in
  the industry
• Self-sufficient, sustainable and geared for
  national development

6
Pending bills in Congress

• HB 1126 - Adding LPG and diesel to the Price
  Control Act
• HB 1724 - Repealing the Oil Deregulation Law
• HB 3029 - Regulating the downstream oil industry
• HB 3030 - Mandating centralized procurement of
  oil
• HB 3031 - Buying back Petron
• HB ____ - Removing VAT on oil and petroleum
  products (for filing upon resumption of sessions)

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HB 1724

• Repeals RA 8479 or the Downstream Oil
  Deregulation Act of 1998.

8
HB 3029

• Creates a 6-person Petroleum Regulatory Council
  to
• monitor, regulate and hold hearings on oil and
  petroleum prices
• maintain a comprehensive database on the
  industry
• manage the Oil Price Buffer Fund (OPBF)

9
HB 3029

• The OPBF is for the strict and unique purpose of
  cushioning the impact of frequent and drastic
  price fluctuations
• prohibits all other reimbursements
• prohibits the President from tapping the fund
• after five years, funds may be invested in
  secure, instruments

10
HB 3030

• Creates the National Petroleum Exchange Corp., a
  PNOC subsidiary
• formulates the Centralized Petroleum Procurement
  Plan
• determines total oil requirements and negotiates
  with suppliers for the best prices and terms
• sole supplier in-charge of importation, storage,
  sale and distribution of all petroleum products
  in the country

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HB 3031

• Mandates the buy-back of Petron Corp.
• govt to initially control 51 of the company
  and then 100 within four years
• Petron to be reoriented as a state-owned company
  with social and developmental funtions and
  responsibilities
• P4 billion initially alloted, the rest to come
  from earnings of 40 govt stake.

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Other areas needing legislation

• Clean and renewable energy
• Anti-trust

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Maraming salamat!