THE global crisis could have been manageable if not for the government’ stupid policy covering the oil industry.
In an ambush interview coinciding a forum held at the Bonifacio Global City in Taguig, Jose Luiz Yulo, in his capacity as president of the Chamber of Commerce of the Philippine Islands (CCPI), hinted at a squandered opportunity that could have spared the Philippines from the adverse effects of the of ongoing tension in the Middle East.
He particularly cited the sale of 40 percent stake of the government in Petron – to San Miguel Corporation, as well as the removal of the Oil Price Stabilization Fund (OPSF) which designed to cushion oil price shocks.
CCPI, formerly referred as La Cámara de Comercio de las Islas Filipinas, was established through a Spanish Royal Decree 140 years ago.
“The government did a major mistake — they sold their ownership in Petron,” which could have given it partial control where oil was sourced and access to figures that could help it influence fuel prices in the market” Yulo said.
What’s happening now is they are “from the outside looking in. They have no control,” he added.
He recalled that the government used to have 40 percent in Petron, while Saudi Arabia held another 40 percent and the remaining 20 percent was in the stock market.
Asked whether the country still needed more industry players even as the Philippine National Oil Co. sought to build up inventory, Yulo sharpened his criticism and pointed to another scrapped mechanism.
“A lot of stupid things the government did, selling out this ownership of a company that had all the information, they also took out the oil stabilization program or the OPSF.”
According to Yulo, the OPSF used to serve as a buffer by allowing the government to accumulate funds when oil prices were low and use them to prevent pump prices from rising too quickly when global costs surged.
The history of the OPSF in the Philippines is closely tied to the state’s efforts to regulate the downstream oil industry, while the sale of government stakes in Petron was a pivotal step in deregulating that same industry in the 1990s.
BUFFER FUNDS
The OPSF was created on October 10, 1984 by the Marcos Sr. administration under Presidential Decree No. 1956 to cushion local consumers from sudden shocks in international oil prices.
It operated as a buffer fund. When global oil prices were low, oil companies contributed to the fund. When prices rose above the prescribed level, the fund paid oil companies to keep domestic pump prices stable.
Executive Order No. 137, issued by President Corazon Aquino, broadened the fund’s sources, including additional tax collections to ensure adequate supply and manage foreign exchange losses.
The fund frequently fell into deficits, becoming a massive burden on the government. Critics argued it was abused for purposes other than stabilizing prices.
The OPSF was abolished in 1996, followed by the deregulation of the oil industry in 1998 under the late President Fidel V. Ramos, allowing oil companies to set their own price based on market competition.
There had been clamor to revive the OPSF or create a similar buffer fund to mitigate rising fuel prices, especially amid geopolitical instability.
LOSING PETRON
The government, through the Philippine National Oil Company (PNOC), acquired Petron (formerly Esso Philippines) during the 1973 oil crisis to ensure fuel security.
But as part of the oil deregulation process, the government sold its 40 percent stake in Petron to Saudi Aramco on March 4, 1994.
Next came the sale through IPO (initial public offering) on September 7, 1994 of another 20 percent of its shares in Petron through the Philippine Stock Exchange.
These two transactions reduced the government’s stake in Petron, allowing private sector management to take control as part of a move to improve operational efficiency.
Saudi Aramco in 2008 sold its stake to the Ashmore Group, which subsequently sold a controlling interest to San Miguel Corporation (SMC) in 2009-2010.
CURRENT STATE
With the country finding itself in a difficult situation caused by the war in Iran (since February 2026), SMC (Petron’s management) expressed its willingness to sell back to the government to help in managing supply stability.
Meantime, the government has so far been working out palliative measures to contain the fuel crisis in the country– which has caused more miserable conditions in transport, logistics, and a worsening food inflation.
Pump prices have been rising uncontrollably– some token rollbacks are being given few and far between only to be replaced soon with a vindictive double digit rise in pump prices.
Public transport systems are being paralyzed by drivers and operators’ strike and farmers/fishermen have difficulty obtaining their production inputs (which are mostly imported) and getting their farm/fishery products to the markets. The peso has been on constant depreciation.
Consumers– many of them from the lower middle and lower income classes– are gravitating towards poverty, with the high prices of basic commodities that government ayuda could not cope with and utilities like water and electricity exacerbate their financial miseries to the point of reducing their disposable income for basic food for the family.
———- Forwarded message ———
From: Rose De La Cruz osang55@gmail.com
Date: Mon, Apr 20, 2026, 12:44 PM
Subject: As requested to me by Luchie, for posting
To: Luchie Aclan Arguelles luchieaclanarguelles@gmail.com, fernanjoseangeles@gmail.com, Luz Anselma Arguelles thephinsider.editorial@gmail.com
CCPI calls stupid govt.’s oil industry policy
By Rose de la Cruz
THE COUNTRY’S old business chamber labelled as “stupid” the government’s policy decisions on the oil industry, citing, among others, the sale of 40 percent stake of the government in Petron– to San Miguel Corp.; and the removal of the Oil Price Stabilization Fund, which has weakened the country’s ability to cushion oil price shocks.
Jose Luiz Yulo, president of the 140-year old Chamber of Commerce of the Philippine Islands– founded as La Cámara de Comercio de las Islas Filipinas through a Spanish Royal Decree, at the sidelines of a forum it held at the UP Bonifacio Global City.
“The government did a major mistake — they sold their ownership in Petron,” which could have given it partial control where oil was sourced and access to figures that could help it influence fuel prices in the market” Yulo said.
What’s happening now is they are “from the outside looking in. They have no control,” he stressed.
He recalled that the government used to have 40 percent in Petron, while Saudi Arabia held another 40 percent and the remaining 20 percent was in the stock market.
Asked whether the country still needed more industry players even as the Philippine National Oil Co. sought to build up inventory, Yulo sharpened his criticism and pointed to another scrapped mechanism.
“A lot of stupid things the government did, selling out this ownership of a company that had all the information, they also took out the oil stabilization program or the OPSF (Oil Price Stabilization Fund),” he said.
Yulo said the OPSF used to serve as a buffer by allowing the government to accumulate funds when oil prices were low and use them to prevent pump prices from rising too quickly when global costs surged.
The history of the Oil Price Stabilization Fund (OPSF) in the Philippines is closely tied to the state’s efforts to regulate the downstream oil industry, while the sale of government stakes in Petron was a pivotal step in deregulating that same industry in the 1990s.
The OPSF
The OPSF was created on October 10, 1984 by the Marcos Sr. administration under Presidential Decree No. 1956 to cushion local consumers from sudden shocks in international oil prices.
It operated as a buffer fund. When global oil prices were low, oil companies contributed to the fund. When prices rose above a set level, the fund paid oil companies to keep domestic pump prices stable.
Executive Order No. 137, issued by President Corazon Aquino, broadened the fund’s sources, including additional tax collections to ensure adequate supply and manage foreign exchange losses.
The fund frequently fell into deficits, becoming a massive burden on the government. Critics argued it was abused for purposes other than stabilizing prices.
The OPSF was abolished in 1996, followed by the deregulation of the oil industry in 1998 under the late President Fidel V. Ramos, which allowed oil companies to set their own prices based on market competition.
There had been clamor to revive the OPSF or create a similar buffer fund to mitigate rising fuel prices, especially amid geopolitical instability.
Sale of govt. stake in Petron
The government, through the Philippine National Oil Company (PNOC), acquired Petron (formerly Esso Philippines) during the 1973 oil crisis to ensure fuel security.
But as part of the oil deregulation process, the government sold a 40 percent stake in Petron to Saudi Aramco on March 4, 1994.
Next came the sale through IPO (initial public offering) on September 7, 1994 of another 20 percent of its shares in Petron through the Philippine Stock Exchange. These two transactions reduce the government’s stake in Petron, allowing private sector management to take control as part of a move to improve operational efficiency.
Saudi Aramco later sold its stake to the Ashmore Group in 2008, which subsequently sold a controlling interest to San Miguel Corporation (SMC) in 2009-2010.
Current Condition (2026)
With the country finding itself in a difficult situation caused by the war in Iran (since February 2026), SMC (Petron’s management) expressed its willingness to sell back to the government to help in managing supply stability.
Meantime, the government has so far been working out palliative measures to contain the fuel crisis in the country– which has caused more miserable conditions in transport, logistics, and a worsening food inflation.
Pump prices have been rising uncontrollably– some token rollbacks are being given few and far between only to be replaced soon with a vindictive double digit rise in pump prices.
Public transport systems are being paralyzed by drivers and operators’ strike and farmers/fishermen have difficulty obtaining their production inputs (which are mostly imported) and getting their farm/fishery products to the markets. The peso has been on constant depreciation.
Consumers– many of them from the lower middle and lower income classes– are gravitating towards poverty, with the high prices of basic commodities that government ayuda could not cope with and utilities like water and electricity exacerbate their financial miseries to the point of reducing their disposable income for basic food for the family.