Most of us know that the standards measure for petrol products, crude, light sweet etc.....is the BBL (barrel). This is exactly equal to gasoline. Whether it is a milk or molten uranium or gas or crude oil..Refineries of the Organization of the Petroleum Exporting Countries (OPec) nations, or just general already know for the past year experience. In order to not waste our crude oil, chemical engineers will perform hydro cracking which will cleave longer (CRUEDER) oil chains into smaller more volatile compounds. and Why is this done?  this is done so that the distilling the "OIL" the engineers will not be able to separate the oil with the greater ease and efficiency. Someone told me that there was a rule of how many gallons of gasoline you can get from one gallon of crude.  

Oil Deregulation is the lifting of certain government controls (such as price control) on several aspects of a specific industry, specifically the oil industry. Under the Oil Deregulation Law (Republic Act No. 8479) enacted in by the Tenth Congress in 1998, government does not interfere with the pricing, export and importation of oil products, nor the establishment of retail outlets (gasoline stations); storage depots; ocean-receiving facilities; and refineries. People can put up these installations practically wherever and whenever they want. In the case of retail outlets, they can even be set up beside or across the street each other. Provided of course the owners/operators of these installations & facilities notify and give prior notice to the Department of Energy (DOE). The location of these installations & facilities conform to the zoning laws of the local government unit concerned. Large business establishments and government corporations can also import their fuel requirements without securing any permit from the government; they just have to inform the DOE. They can also choose any local or foreign supplier to provide these requirements. Should they choose a foreign supplier, they can import their requirements directly from this foreign supplier. For instance, the National Power Corporation (NPC) regularly bids out its fuel requirements for its power plants. Before the deregulation of the industry, Petron Corporation was its exclusive supplier, which more or less dictated its price. With deregulation, competitive offers were tendered, among them by Unioil, thus enabling NPC to purchase its fuel requirements at lower cost. This in turn allows NPC to price electricity from its fuel-fired power plants at lower cost to the consumer.

For the three players of the Oil in the market like Caltex(Philippines), Inc. (now Chevron Philippines, Inc); Pilippinas Shell; and Petron in 1996, there are currently more than 80 new players.

Gabriela Women's Party today renewed calls for the scrapping of 12% value-added tax (VAT) on petroleum products and the Oil Deregulation Law, urging Congress to take up the legislative measures filed by its representatives upon resumption of sessions, in the light of the recent price increases in gasoline and kerosene by P1 to P2 over the weekend.

Gabriela Representatives Maza and Luz Ilagan have filed HB 3458 removing the 12% VAT on oil products and HB 3433 to repeal the RVAT. They have likewise co-authored HB 1724 to repeal the Oil Deregulation
Law.

"The VAT on oil is another heavy burden to an already mammoth one, that is the already steep prices of basic commodities. Its removal is becoming a more pressing demand as the effect of the weekly rise in oil prices are becoming more unbearable for the people. Congress should work immediately to give immediate respite to consumers and the transportation sector," said Cristina Palabay, Gabriela Women's Party Secretary General. Palabay further said discarding the 12% VAT, price of diesel will be reduced by P6.53, gasoline products by P7.26 and 11-kg tank by P97, with their existing rates. "Oil deregulation has only paved the way for the unabated increase in prices, giving leeway to Shell, Petron and Chevron (formerly Caltex) in dictating prices and hikes. The consumers, who are at the receiving end of these measures, are left to bear with the soaring prices that led to the 11.4% current inflation rate," said Palabay. Gabriela Women's Party will be holding and joining the series of community and street protests for the scrapping of the EVAT and Oil Deregulation Law.

Deregulation and competition encourage oil companies to be more effective and efficient; they are compelled to improve their service. Under a regulated set-up, however, domestic oil companies have little reason to strive to meet “world class” standards. Under a regulated set-up, the three oil companies were guaranteed returns on their investments. Hence, there was no incentive for them to provide customers with better service. However, under a deregulated environment, the industry players would have to compete aggressively against each other for customers, and consequently, returns on their investments.

WHAT ARE THE EFFECTS OF OIL DEREGULATION IN THE PHILIPPINE ECONOMY

The Philippines is presently having serious concerns with the effects brought by Oil Deregulation Law. As the fact that it permits oil companies to freely adjust their oil prices that led to the increase of other basic commodities and resulted to economic crisis as people defined.
The underprivileged Filipinos are primarily affected of these concerns for the reason that it makes their budget tighter than before.

Everybody blamed it to oil deregulation law, and as a result they create massive rallies against the administration and oil companies. This paper aims to inform Filipinos the reasons why the oil industry is deregulated and how it came to be. This will be beneficial to people in order to understand the impact of the oil industry in our economy. The advantages, disadvantages and significance of Oil Deregulation will be mention in order to give the readers the effects undergone by the country.

Lastly this paper intends to prove whether or not the method of deregulating the oil industry will improve the economy and the lives of the Filipinos or it will lead to the breakdown of the Philippine Economy.

Government should take hold again of Petron, to be able control the competition among oil companies. If the pricing is controlled, other companies will eventually follow due to competition and of course, Petron is major oil company in the country. The oil companies strive to meet the “ world class standards”. With the use of their profit and improvements of their facilities, they will be able to compete not only in the domestic market but also in the international market.

Deregulation and competition encourage oil companies to be more effective and efficient; they are compelled to improve their service. Under a regulated set-up, however, domestic oil companies have little reason to strive to meet “world class” standards.

Under a regulated set-up, the three oil companies were guaranteed returns on their investments. Hence, there was no incentive for them to provide customers with better service. However, under a deregulated environment, the industry players would have to compete aggressively against each other for customers, and consequently, returns on their investments.

Why is there a need to deregulate the oil industry?

There is a need to deregulate the industry because under a regulated environment, prices are not allowed to rise and fall with market levels. This means that when prices went up, government had to shell out money to subsidize the difference between the old and the new price. Had the government opted not to deregulate, the Oil Price Stabilization Fund.

Why do the prices of oil products keep on increasing?

Prices are determined by a host of factors, including, among others, supply, demand, speculation, weather, and geopolitical factors. Like nations the world over, prices of local fuel products are all dependent on just one raw material: Crude oil. This raw material is produced by several countries known as the Organization of Petroleum Exporting Countries (OPEC), which counts Algeria; Angola; Ecuador; Indonesia; Iran; Iraq; Kuwait; Libya; Nigeria; Qatar; Saudi Arabia; the United Arab Emirates; and Venezuela as its members. The OPEC members produce about 40% of the world’s oil and hold more than 77% of the world’s proven oil reserves. OPEC members also control most of the world’s excess oil production capacity. However, Indonesia recently announced it will suspend its membership in the organization as it has now become a net oil importer.

Scrapping the of oil deregulation law opposed: MANILA, Philippines—(UPDATE) A congressional think tank has opposed proposals to junk the oil deregulation law as it is, warning that taxpayers would have to bear the burden of keeping oil prices stable if the whole law is scrapped. The Congressional Planning and Budget Department of the House of Representatives said in a report released to the media on Tuesday that without the oil deregulation law, there would have to be price intervention in the domestic oil markets. “This would require reviving the oil price stabilization fund (OPSF) to be funded again by the taxpayers, which the government, given its fiscal record and outstanding debts, simply cannot afford,” CPBD director general Rodolfo Vicerra said in his report. Vicerra also said the OPSF has been one of the factors behind the government's deficit and indebtedness.

The Alliance of Concerned Transport Organizations (ACTO) is set to stage a nationwide strike tomorrow to protest the implementation of a Department of Transportation and Communication (DOTC) order increasing the fines on erring drivers caught violating traffic rules. “(Holding a) transport strike is a violation of their franchise to operate. We will file the necessary case with the Land Transportation Franchising and Regulatory Board (LTFRB),” Vicente Millora, NCCP chairman. ACTO national president Efren de Luna said the transport strike will be staged by some 100,000 public utility vehicles – jeepneys, FXs, and taxicabs – affiliated with their group.“We are also inviting other transport groups to join us in the strike,” he said. Calling the increased amount of fines as “inhumane,” De Luna said it would seriously burden public utility drivers. The Department of Transportation and Communications Order 2008-39 increased by almost 200 percent fines imposed on violations committed by drivers of public utility vehicles such as wearing slippers, disregarding traffic signs and loading passengers not in designated places.De Luna said that from the previous fine of P150 for the first offense, the amount has been raised to P1,000. A second offense is punishable with a P1,500 fine and suspension of driver’s license for two months.