Piston continues to condemn the Oil Deregulation Law (Republic Act 8479), blaming it for continuously crippling the income and livelihoods of drivers and consumers. The law, enacted 27 years ago on Feb. 10, 1998 to liberalize the oil industry, has left drivers and consumers at the mercy of volatile global oil markets and unchecked corporate pricing.
Since its implementation, the Oil Deregulation Law has stripped the government of its power to regulate fuel prices, enabling oil companies to impose frequent and arbitrary hikes. Piston estimates that jeepney drivers now spend up to 60% of their daily earnings on fuel alone.
“What was promised as ‘market efficiency’ has become a tool of exploitation,” said Mody Floranda, national president of Piston. “For 27 years, this law has bled drivers and consumers dry while oil cartels rake in record profits.”
The deregulation of the downstream oil industry was a component of the broader liberalization framework pursued by the late former President Fidel Ramos. It served as one of the structural conditionalities for a 1994 loan from the International Monetary Fund (IMF).
Historical data shows that since the enactment of the Oil Deregulation Law in 1998, the retail pump price of diesel has surged by 714% (P8.10/liter in March 1998 to P57.81/liter in January 2025) and gasoline prices by 563% (P11.62/liter in March 1998 to P65.41/liter in January 2025).
The Department of Energy (DOE) attributes this surge primarily to fluctuations in global crude oil prices and the depreciation of the Philippine Peso. However, Piston argues that this only demonstrates that deregulation does nothing to address these structural vulnerabilities and has only exacerbated the vulnerability of ordinary Filipino consumers to price shocks.
“Now, a single price hike can wipe out a week’s income,” said Floranda. “We’re trapped in a cycle of poverty, with no relief in sight from the Marcos administration who cuts budget on basic social services while pouring money on programs and projects vulnerable to corruption.”
Floranda, who is also running for senator under the Makabayan Coalition, advocates for the repeal of the Oil Deregulation Law. His campaign emphasizes the need for genuine regulation as the long-term solution to high oil prices. This includes retaking Petron under state control, implementing a centralized procurement system, and exploring alternative trading arrangements. To provide immediate relief, Floranda proposes eliminating the Value-Added Tax (VAT) and excise tax on oil and pushing for complete transparency through the unbundling of oil firms’ pricing mechanisms.