MANILA, Philippines - President Benigno “Noynoy” Aquino III is against the repeal of the Oil Deregulation Law, saying this will only make fuel prices artificially low, while putting pressure on the limited resources of the government.
“It is very nice to hear if we scrap the Oil Deregulation Law. But how can we do that if world oil prices are really on the uptrend? Where will we get the money to pay for the difference between the crude sold and our actual imports,” he said during his Labor Day speech on Sunday.
He said this could be done, but the effect will only be artificial. “The value of the peso will go down. The prices of commodities with an imported content will go up…,” he said.
Aquino said the government instead allotted resources to people directly affected by rising oil prices. Aquino said the fuel subsidy for the transport sector prevented an increase in transportation fares, easing the burden of commuters as well.
He said the government has limited resources, which is why these must be spent well. “We are putting the budget where it is needed. Since there is no need to adjust transportation fares, we are helping a lot of commuters especially since the opening of classes is nearing,” he added.