Oil prices surged despite Marcos Sr.’s regulation policies

Oil prices in the Philippines spiked from 1971 to 1984 — a period marked by two global oil crises — despite then-President Ferdinand Marcos Sr.’s oil regulation policies, contrary to Sen. Robin Padilla’s claim that the country did not experience such shocks during that period.

Marcos introduced oil regulation through the Oil Industry Commission (OIC) Act on April 30, 1971. But regulation did not shield the country from the oil crises triggered by the Yom Kippur War in 1973 and the Iranian Revolution in 1979.

Petroleum products prices surged by as much as 241% from September 1973 to April 1974 and by up to 186% from July 1979 to August 1980.

Source: Department of Energy · Created with Datawrapper

Yet Padilla said in an interview with the Bilyonaryo News Channel last April 15:

Nasubukan na natin itong oil regulation na ‘to, bago nila ‘yan [ipinasa] noong 1998. Kay Marcos Sr. ‘yan eh. May oil crisis noong 1971. Ipinasa niya [‘yung oil regulation policies]… So nakatulong no’ng panahon na ‘yon. Ang tagal no’n, from ‘71 to 1984, wala tayong naranasan na ganito — na bigla tayong shinashock ng pagtaas ng langis (We had already tried oil regulation before it was passed in 1998. That was under Marcos Sr. There was an oil crisis in 1971 when he implemented oil regulation policies, which were helpful at the time. That was a long period — from ‘71 to 1984, we did not experience shocking spikes in oil prices like we see today). [8:16 mark]

Padilla made the remark while arguing that repealing the Oil Deregulation Law and reinstating oil regulation would better address today’s rising fuel prices amid the ongoing conflict involving Iran, the United States and Israel than the proposed 12% cut on value-added and excise taxes.

Department of Energy historical price data show that pump prices in the Philippines rose sharply during both the 1973 oil crisis and the 1979 oil shock. 

After the 1973 Arab oil embargo, regular gasoline rose by 241% from P0.32 per liter in September 1973 to P1.09 in April 1974, while premium gasoline climbed by 211% from P0.37 to P1.15 over the same period. Kerosene and diesel also more than tripled, rising from P0.27 to P0.84 and from P0.27 to P0.87.

The pattern repeated during the second oil shock. From July 1979 to August 1980, regular gasoline rose from P1.66 to P4.75 per liter or 186%, while premium gasoline went from P1.81 to P4.59 or 154%. Kerosene and diesel also posted steep increases, from P1.12 to P2.81 and from P1.21 to P2.81.

Price surged even though the Philippines had already adopted regulatory measures and created the Philippine National Oil Co. in 1973 to help secure supply. 

Marcos also imposed energy conservation measures in 1980 through Batas Pambansa Blg. 73 as the country continued to grapple with unstable world oil supplies.  (JA)