With the fluctuations in gasoline price today, Bongbong Marcos is expressing his support to return the Oil Price Stabilization Fund. In an interview with Erwin Tulfo, he said that it would be wise to consider the OPSF with the rising oil prices. His father, Ferdinand Marcos, set up the OPSF to protect the consumers from the fluctuations of oil prices. However, he also adds that during Ramos’ administration, it was scrapped in favor of the deregulation of the oil industry.
YouTube video by GMA News
[VIDEO]: Papalo na ng mahigit P60 ang kada litro ng gasolina bukas kapag ipinatupad na ang malakihang taas-presyo ng ilang kumpanya ng langis. ‘Yan na po ang pinakamahal na presyo ng gasolina sa loob ng halos isang dekada. Pero alam niyo ba na sa ibang bahagi ng Pilipinas, ngayon pa lang, nasa P71 na ang gasolina?
As Bongbong Marcos explains, the OPSF works by taking a portion of the sales of the top three oil companies, Shell, Caltex, as well as the government-owned Petron. In an event of a price hike, the fund can serve as a buffer.
Gasoline Price Buffer Fund
With a buffer fund, BBM states that this will protect the Filipinos from the effects of rising oil prices. Because the fund will be able to cushion the increase.
He also states that ultimately this would cushion inflation as well. Because a higher price in oil almost immediately translates to a higher price of commodities. However, sadly wherein there is a decrease in oil price, it doesn’t automatically translate to a lower price of commodities.
Confusion on Rising and Falling Oil Prices
He finds it odd that when the oil prices go down, unlike when it goes up, the prices of goods don’t follow suit. He understands that with everything using up crude oil, rising oil prices would certainly affect the prices of goods. However, why is it that when the prices for oil go down, the prices for goods just stay stuck.
Insights from the Opposition
The main argument against the OPSF Fund is that back then the oil companies formed a cartel and dictated the prices. Setting up the OPSF again may mean going back to the era where oil prices are fixed.
Bleeding Ramos Administration
With all of the bleeding in the finances of the Philippines in President Ramos’ time, His economic and finance ministers had enough. This led to President Ramos signing the R.A. 8479 or the “Downstream Oil Industry Deregulation Act of 1998”. The purpose of the said act was to ensure a competitive market in the oil industry by deregulating it. Furthermore, the act also promotes the entry of new participants.