According to Bernales(2010), “deregulation is the lifting of certain government controls (such as price control) on several aspects of a specific industry, specifically the oil industry”. Oil deregulation, therefore, means that there is nothing that the government can do to interfere with pricing and operation of oil companies except policy making. On the other hand, under a regulated environment, government establishes Oil Price Stabilization Fund(OPSF) which pays for the difference in price set by government and price of oil in the global market.
Those who oppose R.A. 8479 claim that deregulation will result to abuses from oil companies whilst advocates of Oil Deregulation Law argue that it must be retained primarily because it encourages competition and protects government from vulnerability of price changes. The data gathered by Ibon Foundation, an independent think-tank, shows that pioneering oil companies, Shell, Caltex, and Petron has earned enormous profits in 2007 alone amounting to Php4.12 billion, Php 2.75