Lawmaker: Deregulation law a boon to oil firms

The Philippines two oil refiner, Pilipinas Shell Petroleum Corp. and Petron Corp., have raked in nearly Php70 billion (US$1.55 billion) in combined net profits since the passage of the Downstream Oil Industry Deregulation Law in 1998, according to a senior member of Congress. Cebu Representative Eduardo Gullas said Shell posted Php33.59 billion US$742.1 million) in cumulative net profits from 1998 to the first quarter of 2008. On the other hand, Petron cleared Php35.18 billion (US$777.2 million) in profits over the same period, he said. He said the Downstream Oil Industry Deregulation Law has definitely been a boon to the two oil refiners and other industry players. “There is also no question that as a result of soaring world oil prices, industry players are enjoying enormous pricing power that has enabled them to pump up their profits,” Gullas said. Gullas stressed the need for the Department of Energy (DOE) to use its powers under the Downstream Oil Industry Deregulation Act to thwart possible pricing abuses by the oil companies. (July 22, 2008)