The global increase in the price of oil brought by the Russia-Ukraine war and the rebound in consumption has raised the prices of commodities. Exorbitant costs of basic needs such as food and transportation have been hurting Filipino consumers, especially those in poverty. To ease the impact of oil price spikes, some policymakers are eyeing the revival of the Oil Price Stabilization Fund (OPSF), which was once implemented to control the local price of oil.
This infographic shows the risks of bringing back the OPSF based on its history and how other countries are struggling with a similar policy. This infographic also points out misconceptions about the deregulation law and encourages policymakers to look at other policy alternatives instead of reviving the OPSF.
This infographic is based on PIDS Discussion Paper Series 2022-16 titled “On the OPSF and the Downstream Oil Industry Deregulation: Lead Us Not into Reversal Temptation and Deliver Us from Obfuscation,” written by PIDS Senior Research Fellow Adoracion Navarro. The publication may be downloaded here: https://www.pids.gov.ph/publication/discussion-papers/on-the-opsf-and-the-downstream-oil-industry-deregulation-lead-us-not-into-reversal-temptation-and-deliver-us-from-obfuscation
