Federalism seen to regulate fuel costs
CONSTITUTIONAL Commission representatives tasked to revise the 1987 constitution sees the possibility of empowering federalized regions to look into how petroleum companies dictate the prices of fuel particularly in the Cordillera Administrative Region.
During the Baguio leg of the Regional Consultation on Federalism, Cordillera RePOLICE gion ConCom representative Dr. Virgilio Bautista explained if federalism pushes through, Cordillera can decide on what to do with erring petroleum companies despite the law on deregulation.
“A major portion of
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the decision in our proposal is to have shared powers. Although the national governs a lot of issues, federal states will have decisions in their areas. So like right now I think most of you know, it was very difficult for local gasoline stations to justify because try to imagine, La Union to Baguio having a difference of P6 to P8 per liter, how can you explain that with transportation bringing it up,” Bautista said.
Recently, Mayor Mauricio Domogan called on the Department of Energy and gasoline station owners in Baguio City to explain the reason for the high cost of fuel prices in the city.
“The difficulty here is this has to go to the Energy Regulatory Commission (ERC) in Manila who is sitting down on it up to now. If we were already federated, our own regional government can now make a decision on how petroleum products should be priced, and that’s a major difference,” Bautista pointed out.
ConCom representative Atty. Ferdinand Bocobo reiterated the possible creation of a commission tasked to look into wrong practices of business cartels which would serve as federal region.
“We are proposing for a Federal Competition Commission who will look into cartels in the country. Petroleum products are deregulated in a sense these market forces are left alone. However, if there is evidence, the commission is now strengthened to look into the possibility of cartels like the big oil companies,” Bocobo stated.
At least 18 federal states are being eyed by the commission including Metro Manila, Autonomous Region of Muslim Mindanao and CAR following the 1987 Constitution under Executive Order 220 creating the autonomous regions of Muslim Mindanao and Cordillera.
President Rodrigo Duterte created a 19 member consultative body which were tasked to do relevant revisions on the 1987 Constitution consisting of the national territory, declaration of principles and state policies, law and order/anti -terrorism, anti-dynasty law, bill of rights, right to suffrage, legislative department, the retainment of the house of representatives, the federal assembly among others.