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Held:
1. R.A. No. 8180 is unconstitutional. It violated Section 19, Article XII of the
Constitution prohibiting monopolies, combinations in restraint of trade and unfair
competition. The deregulation act only benefits Petron, Shell and Caltex, the
three major league players in the oil industry.
2. Yes, Executive Order No. 392 was arbitrary and unreasonable and therefore
considered void. The depletion of OFSP is not one of the factors enumerated in
R.A. No. 8180 to be considered in declaring full deregulation of the oil industry.
Therefore, the executive department, in its declaration of E.O. No. 392, failed to
follow faithfully the standards set in R.A. No. 8180, making it void.
3. No, section 5 of R.A. No. 8180 does not violate Section 26(1), Article VI of the
Constitution. A law having a single general subject indicated in the title may
contain any number of provisions as long as they are not inconsistent with the
foreign subject. Section 5 providing for tariff differential is germane to the subject
of the deregulation of the downstream industry which is R.A. No 8180, therefore
it does not violate the one title-one subject rule.
4. No, Section 15 did not violate the constitutional prohibition on undue delegation
of legislative power. The tests to determine the validity of delegation of legislative
power are the completeness test and the sufficiency test. The completeness test
demands that the law must be complete in all its terms and conditions such that
when it reaches the delegate, all it must do is enforce it. The sufficiency test
demands an adequate guideline or limitation in the law to delineate the
delegates authority. Section 15 provides for the time to start the full deregulation,
which answers the completeness test. It also laid down standard guide for the
judgement of the President- he is to time it as far as practicable when the prices
of crude oil and petroleum products in the world market are declining and when
the exchange rate of peso to dollar is stable- which answers the sufficiency test.
Decision:
The petitions were granted. R.A. No. 8180 was declared unconstitutional and E.O. No.
372 void.