SENATE Committee on Energy chairman Sen. Erwin Tulfo on Thursday vowed to prioritize measures aimed at lowering fuel prices, strengthening the country’s energy security and reviewing the Oil Deregulation Act in the face of persistent global oil market volatility and geopolitical tensions.
In his opening statement during the committee’s first hearing, Tulfo said the panel’s primary objective is to ensure that energy remains affordable, reliable and sufficient for households, businesses, transport operators and industries.
He noted that recent conflicts in the Middle East, escalating tensions in the West Philippine Sea and fluctuations in global oil prices continue to create uncertainty for consumers and businesses alike.
He said rising fuel prices have a cascading effect on the economy, increasing transportation costs and driving up the prices of food and other basic commodities.
Tulfo said jeepney drivers, fishermen, farmers and delivery riders are among those most affected by recurring fuel price hikes.
As its first major undertaking, the energy committee will review proposed amendments to Republic Act 8479, or the Downstream Oil Industry Deregulation Act of 1998.
Tulfo said the law, while originally intended to promote competition and efficiency, should be reassessed to determine if it remains responsive to market realities.
He also raised allegations of large-scale oil smuggling involving the underdeclaration of imported fuel shipments.
Some importers allegedly declare only a fraction of the petroleum products they bring into the country, significantly reducing the taxes they pay while earning substantial profits from undeclared fuel, he said.
Tulfo said that even the taxes paid on the declared volume are ultimately passed on to consumers through excise taxes and value-added tax collected at retail fuel stations.
He called on the Department of Finance and the Bureau of Customs to examine the tax payments of several oil importers by comparing customs declarations with records from their load ports of origin.
The companies identified by the senator were: Felcor Petroleum and Control Holdings Inc. at the Port of Cagayan de Oro; Smile Petroleum OPC at the Port of Cebu; and Powerfill at the Port of Batangas.
Tulfo directed the committee secretary to invite Customs officials to the panel’s next hearing to discuss the matter.
He did not present documentary evidence during his opening statement to support the allegations. The companies that were named and the Customs bureau have yet to publicly respond to the claims.
The committee will also deliberate on bills seeking to establish a Philippine Strategic Petroleum Reserve, also referred to as a National Strategic Fuel Reserve.
Tulfo said the proposed reserve would help protect the country during national emergencies, severe supply disruptions, or periods of extreme oil price volatility by ensuring the availability of fuel reserves.
He said the pending measures aim to improve transparency in fuel pricing, strengthen government oversight of the oil industry, cushion consumers from sudden price increases and enhance the country’s preparedness for future energy crises.
“In the end, our goal is one: an energy sector that is not only strong and reliable but truly serves and protects every Filipino,” Tulfo said.
