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| Inquirer |
Let's examine the complaints made by Bulatlat
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| Bulatlat |
Here's a chart from Bulatlat that compares the increase in prices of gasoline between the Philippines, Thailand, and Malaysia. It's always problematic when people ignore simple economics. It's funny, but Bulatlat mentions this on their website:
Note also how expensive our diesel and gasoline products are compared to those of our ASEAN neighbors. The estimated common price today of diesel in NCR is around P99 per liter compared to Indonesia’s P24 per liter (subsidized diesel) and P50 (non-subsidized diesel); Malaysia’s P33 per liter (subsidized) and P60 per liter (non-subsidized); and Thailand’s P61 per liter. For gasoline (RON95), the estimated common pump price in NCR is around P82 per liter. In Malaysia, subsidized RON95 retails at P30 per liter, and in Thailand, at P57-59 per liter. Aside from the lack of price regulation and state subsidies, petroleum products in the Philippines are more expensive due to onerous taxes. Our value-added tax (VAT) rate of 12 percent on oil products is the highest in ASEAN.
But the bigger culprit is deregulation – a policy imposed on the Philippines by the International Monetary Fund (IMF) through conditional loans – that took away all the necessary policy tools that the government could use today to protect the people and the economy from the global oil shock. Compared with Indonesia, Malaysia, and Thailand, Philippine fuel prices are the most exposed to global price spikes due to deregulation. A set of metrics developed by GlobalPetrolPrices.com on fuel market pricing policies shows that the Philippines has the highest price flexibility (how often the fuel price changes), oil price correlation (how closely the fuel price follows the world oil price), and pass-through (how much a change in global oil price affects fuel prices).
Blaming oil deregulation again? Does Bulatlat even understand the basic principle of supply and demand? If we must understand oil regulation, let me post the Republic Act No. 8479's definition, just the heck of it!
CHAPTER II
LIBERALIZATION OF THE DOWNSTREAM OIL INDUSTRY AND PROMOTION OF FREE COMPETITIONSection 5. Liberalization of the Industry. – Any law to the contrary notwithstanding, any person or entity may import or purchase any quantity of crude oil and petroleum products from a foreign or domestic source, lease or own and operate refineries and other downstream oil facilities and market such crude oil and petroleum products either in a generic name or his or its own trade name, or use the same for his or its own requirement: Provided, That any person who shall engage in any such activity shall give prior notice thereof to the DOE for monitoring purposes: Provided, further, That such notice shall exempt such person or entity from securing certificates of quality, health and safety and environmental clearance from the proper governmental agencies: Provided, furthermore, That such person or entity shall, for monitoring purposes, report to the DOE his or its every importation/exportation: Provided, finally, That all oil importations shall be in accordance with the Basel Convention.Section 6. Tariff Treatment. – (a) Any law to the contrary notwithstanding and starting with the effectivity of this Act, a single and uniform tariff duty shall be imposed and collected both on imported crude oil and imported refined petroleum products at the rate of three percent (3%): Provided, however, That the President of the Philippines may, in the exercise of his powers, reduce such tariff rate when in his judgment such reduction is warranted, pursuant to Republic Act No. 1937, as amended, otherwise known as the Tariff and Customs Code: Provided, further, That beginning January 1, 2004 or upon implementation of the Uniform Tariff Program under the World Trade Organization and ASEAN Free Trade Area commitments, the tariff rate shall be automatically adjusted to the appropriate level notwithstanding the provisions under this Section.(b) For as long as the National Power Corporation (NPC) enjoys exemptions from taxes and duties on petroleum products used for power generation, the exemption shall apply to purchases through the local refineries and to the importation of fuel oil and diesel.Section 7. Promotion of Fair Trade Practices. – The Department of Trade and Industry (DTI) and DOE shall take all measures to promote fair trade and prevent cartelization, monopolies, combinations in restraint of trade, and any unfair competition in the Industry as defined in Article 186 of the Revised Penal Code, and Articles 168 and 169 of Republic Act No. 8293, otherwise known as the "Intellectual Property Law". The DOE shall continue to encourage certain practices in the industry which continue to encourage certain practices in the Industry which serve the public interest and are intended to achieve efficiency and cost reduction, ensure continuous supply of petroleum products, and enhance environmental protection. These practices may include borrow-and-loan agreements, rationalized depot and manufacturing operations, hospitality agreements, joint tanker and pipeline utilization, and joint actions on spill control and fire prevention.The DOE shall monitor the relationship between the oil companies (refiners and importers) and their dealers, haulers and LPG distributors to help ensure the observance of fair and equitable practices and to ensure the enforcement of existing contracts: Provided, That the DOE shall conciliate and arbitrate any dispute that may arise with respect to the contractual relationship between the oil companies and the dealers, haulers and LPG distributors involving the dealers' mark-up, the freight rate in transporting petroleum products and the margins of LPG distributors for the protection of the public and to prevent ruinous competition: Provided, further, That the arbitration award of the DOE shall be subject to judicial review under existing law.
Even funnier are Bulatlat's own words by Janess Ann J. Ellao, written last June 2, 2021, during the pandemic period with fearmongering about economic cha-cha:
MANILA – Filipino farmers are worried as lawmakers approved on third reading the proposal to amend the Philippine Constitution, dubbed as the “economic Cha-cha” bill, allowing full foreign ownership of land and of the country’s resources.
Proponents of the Resolution of Both Houses No. 2, which was adopted on its third reading in the House of Representatives yesterday evening, claimed that opening up the economy to big, foreign powers will provide a more conducive climate for investment, resulting in job opportunities and the spurring of the country’s economic growth as it recovers from the onslaught of the pandemic.
But for Filipino farmers, allowing foreign multinational companies full ownership of land and other key finite resources may result in “irreversible economic and political repercussions” that may leave them landless.
“The so-called deluge of foreign investment to be brought by economic Cha-cha is only for the benefit of hacienderos and big businesses and not for the Filipino people,” said peasant leader Danilo Ramos of the Kilusang Magbubukid ng Pilipinas.
He said that under the guise of foreign direct investments, capital will be channeled to plantations and agricultural businesses devoted to crops for export. As such, only big landlords and agribusinesses will benefit from the so-called investments in agriculture while farmers and farmworkers will continue to suffer from landlessness and slave wages.
I can only say is that's more fearmongering. Now, for their information, Bulatlat had just cited countries that are more FDI-friendly than the Philippines! Let's take a look at these countries!
The case of Indonesia
Ongoing business reforms
Indonesia has continued to refine its business regulations following the enactment of the Omnibus Law in 2020, aiming to enhance the investment climate. Notably, in March 2023, the government passed Law No. 6 of 2023, which formalized Government Regulation in Lieu of Law No. 2 of 2022, thereby reinforcing the legal foundation for ongoing reforms.Key developments include the introduction of a risk-based business licensing system through the Online Single Submission (OSS) platform, simplifying the permit process for low-risk enterprises. This system is now governed by the newly issued Regulation No. 28 of 2025 (PP No. 28 Tahun 2025), which regulates the implementation of Risk-Based Business Licensing (Perizinan Berusaha Berbasis Risiko/PBBR) through the OSS-RBA platform. Additionally, the Financial Services Authority (OJK) issued Regulation No. 45 of 2024 to clarify changes affecting issuers and listed companies, providing greater regulatory certainty.The most notable change to doing business is the introduction of the ‘positive investment list’. The general principle under the positive investment list is that a business sector is open to 100 percent foreign investment unless it is subjected to a specific type of limitation. The regulation presents one of the greatest liberalizations in foreign ownership limitations in Indonesia since the negative investment list was first introduced in the 1980s.Important sectors that had previous foreign ownership restrictions, which have now been lifted include, among others:
- Telecommunications;
- Transportation;
- Energy;
- Distribution; and
- Construction services.
Another significant reform act is the risk-based approach to the issuance of business licenses. Business licenses will now be issued based on the assessment of the ‘business risk level’ determined by the scale of hazards a business can potentially create.To determine the risk level, the government will conduct a risk analysis of each application before deciding on issuing a business license. This will comprise of:
- Identifying the relevant business activity;
- Assessing the hazard level;
- Assessing the potential occurrence of hazards;
- Determining the risk level and business scale rating; and
- Determining the type of business license.
Based on the aforementioned risk analysis, the business activities undertaken by the applicant company will be classified into one of the following risk-level types:
- Low-risk businesses;
- Medium-low risk businesses;
- Medium-high risk businesses; and
- High-risk businesses.
- Based on this risk-based approach, the lower the business risk, the simpler the business licensing requirements will be.
The government will undertake the risk analysis for business activities in the following sectors:
- Maritime affairs and fisheries;
- Agriculture;
- The environment and forestry;
- Energy and mineral resources;
- Nuclear energy;
- Industry;
- Trading;
- Public works and housing;
- Transport;
- Health, medicine, and food;
- Education and culture;
- Tourism;
- Religious affairs;
- Post, telecommunications, broadcasting, and electronic system, and transactions;
- Defense; and
- Employment
What's more important to understand is that the 1945 Constitution of Indonesia is that it doesn't contain any of the restrictions similar to Article XII of the "sacred" 1987 Constitution of the Philippines. It becomes harder. Instead, Article 33 of the Indonesian constitution says this:
Article 33
Article 33 embodies the principle of economic democracy which states that production is done by all for all, under the leadership of supervision of members of the community. Social prosperity is the primary goal, not individual prosperity. Hence, the economy is organized as a common endeavour based on the principles of the family system. The form of enterprise which meets those conditions is the cooperative.
The economy is based on economic democracy which envisages prosperity for everybody. Therefore, economic sectors which are essential for the country and which affect the life of the people, must be controlled by the state. Otherwise the control of production might fall in the hands of powerful individuals who could exploit the people. Hence, only enterprises which do not affect the life of the general population may be left to private individuals.
The land, the waters and the natural resources therein are basic assets for the people's prosperity and should, therefore, be controlled by the state and exploited to the greatest benefit of the people.
The big difference is that Indonesia says, "Okay, we need to ease this to improve our economy." It's easy to say that even this country has restrictions. The problem is the kind of restrictions because I don't read the mandatory 60-40 restriction in the Indonesian constitution.
The case of Thailand
Let's look at Thailand now, which is why relying on oil subsidy isn't as glamorous as it looks:
The Oil Fuel Fund Office (OFFO) is accelerating the use of the Oil Fuel Fund to subsidise diesel by as much as 18.31 baht per litre to prevent retail prices from rising above 30 baht per litre, amid sharp volatility in global oil markets that is pressuring energy costs and household living expenses. The office said the measure is intended as a short-term price-stability tool, while maintaining the principle that prices should reflect real costs and avoiding cross-subsidies between fuel groups.
OFFO issued Announcement No. 21 on contribution rates to the fund, compensation, refunds from the fund, and repayment of compensation to the fund for petroleum products, aimed at keeping domestic fuel prices at an appropriate level. The announcement takes effect from March 14, 2026.
The main objective is to ease the cost-of-living impact after domestic retail fuel prices showed signs of rising beyond what is considered appropriate—set at more than 30 baht per litre. OFFO said allowing prices to climb unchecked could have broad economic consequences and affect national energy security.
However, OFFO stressed that the intervention is temporary, and that it continues to adhere to cost-reflective pricing to avoid distorting market mechanisms, while also avoiding cross-subsidies.
However, we can also read this from the Lex Nova law firm by Vincent Birot. Here's something about foreign investment in Vietnam:
What Makes Thailand’s BOI Incentives Unique? (2026 Overview)
Thailand’s Board of Investment (BOI) is a government agency responsible for promoting and facilitating foreign investment under the Investment Promotion Act B.E. 2520 (1977). Established in 1966, the BOI operates under a unique legal framework that allows promoted businesses to benefit from incentives and ownership structures not available to standard Thai companies, specifically designed to attract and support foreign capital.
The key benefits of a BOI investment promotion include:
- Eligibility for 100 percent foreign ownership
- Corporate income tax holidays of up to 13 years
- Import duty exemptions on machinery and qualifying materials
- Possibility to own land
- Reduced requirements to support work permit and visa processing
Recent data released by the Ministry of Commerce Thailand highlights the impact of these incentives. Between January and November 2025, foreign investment into Thailand reached THB 311.16 billion, representing a 45 percent year-on-year increase. A total of 973 foreign companies were approved, creating 5,718 Thai jobs. BOI-promoted projects accounted for approximately 74.7 percent of total investment value, with strong inflows from Singapore, Japan, China, Hong Kong, and the United States. Notably, the Eastern Economic Corridor (EEC) alone attracted 33 percent of all foreign capital.
For foreign investors, BOI promotion provides advantages that are not available through standard company structures due to the restrictions imposed by the Foreign Business Act. Non-BOI structures are typically subject to foreign ownership limits and limited tax relief options, whereas obtaining a BOI promotion certificate can open access to enhanced ownership rights, tax incentives, and increased operational flexibility.
With new or updated BOI incentives and promotion rules expected to be introduced in 2026, staying up to date with BOI incentives news and BOI promotion news is highly recommended. Checking your eligibility for a BOI promotion is always recommended for foreign investors as a successful application will have a real impact on how successfully a foreign investment can operate in Thailand.
For more information about the BOI and whether your project will be eligible for a BOI, please feel free to contact our team of experts here.
If Bulatlat just carefully looks at the details, we realize that Thailand has been far more aggressive with courting FDI than the Philippines has been, even since 1966 to the present. If they want to really be able to do subsidies, why didn't we start courting FDI before? Thailand has never been colonized and never will be.
Finally, let's take a look at Malaysia
From page 308:
Nevertheless the increase in foreign investments helped to create jobs and so lowered the unemployment rate, which was high at the time. Our approach differed from those of Japan and Korea, where the preference was for acquiring foreign technology for investment by the locals. We did not have local entrepreneurs with the money or the willingness to invest in industries they were not familiar with. It was only after many years that the Malaysians acquired the knowledge and industrial skills to invest in manufacturing. Thus it was through FDI that we succeeded in converting our agricultural economy into an industrial economy and eventually solving our unemployment problem.
From page 334:
Managing a manufacturing industry is very difficult and there was no substantial industry in Malaysia at that time that we could take our lessons from. We went for foreign investments because we did not have locals who were willing to take the leap. Locals wanted to stay within their comfort zones. When there is no competition in the mix, it is easy to get away with low quality, bad management, dirty processes and inefficiency. But in a competitive environment, you must always be on guard. You have to look for ways to improve your product and be more cost-efficient. If you do not, you can be very sure that your competitors will be doing exactly that. Tax protection may provide some comfort but it should not make things too easy and discourage effort. It should certainly not cultivate bad attitudes and habits.
From page 372:
Creating jobs, especially by implementing policies that encourage the creation of private sector work opportunities, is the proper role of government. That was why when Malaysia invited foreign investment, we did not insist on immediately collecting taxes. We were prepared to forgo taxes if the investors created jobs for our people. In our view, no one who was prepared to work should remain unemployed. In fact, the Government was so successful in creating jobs that there are now more than two million foreign workers in the country. We cannot ourselves meet the demand for labour that our economic development has generated.
Besides, if we decide to read through the Malaysian constitution, you will never find the economic restrictions within it. That means when protectionist measures are needed (such as tariffs), the country simply puts them into legislation and revokes them via legislation.
To put it simply, FDI is also key to help regulate oil prices
If you think about it, because the other ASEAN nations are more FDI-friendly than the Philippines, they can do stuff like:
- Find ways to refine gasoline within their own country to shorten the supply chain.
- Drilling for oil in their own country (if ever), which can greatly help when you can refine gasoline in your own country.