tatad v secretary of energy

8/9/2019 Tatad v Secretary of Energy

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Tatad v Secretary of Energy 281 SCRA 330

FACTS:

The petitions at bar assail the constitutionality of various provisions of R.A No. 8180 and E.O.

No. 39.

!on"ress enacted RA 8180# $%o&nstrea' Oil (ndustry %ere"ulation Act of 199).$

(n *.R. No. 1+3)0# petitioner ,rancisco -. Tatad sees the annul'ent of section /b of R.A.

No. 8180. -ection /b. The said la& provides the i'position of tari2 on i'ported crudes and

dere"ulation to be ti'ed and i'ple'ented by %OE &hen the prices of crude oil and

petroleu' products in the &orld 'aret are declinin" and &hen the echan"e rate of the

peso in relation to the 4- dollar is stable.

Ar"u'ents of Tatad5

1. ,irst# that the i'position of di2erent tari2 rates on i'ported crude oil and i'ported

re6ned petroleu' products violate the equal rotection clau!e" The 377 tari2

di2erential unduly favors the three eistin" oil re6neries and discri'inates a"ainst

prospective investors in the do&nstrea' oil industry &ho do not have their o&n re6neries

and &ill have to source re6ned petroleu' products fro' abroad.

. ('position of di2erent tari2 rates does not dere"ulate the do&nstrea' oil industry but it

run! counter to the o#$ective of the la% &to fo!ter a truly co'etitive 'ar(et"&

In G.R. No. 127867# petitioners Edcel !. :a"'an# ;oer


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. E"-" .o" 3/2 i'le'enting the full deregulation of the do%n!trea' oil indu!try

i! ar#itrary and unrea!ona#le #ecau!e it illegally con!idered the deletion of the

-SF fund a! a factor. a condition not found in R"A" .o" 8180" The petitioners

ar"ue that E.O. No. 39 is null and void as it &as based on indeter'inate standards set by

R.A. 8180. hether or not section 1/of RA 8180 violates the constitutional prohibition on undue

dele"ation of po&er?

b >hether or not E.O. No. 39 is arbitrary and unreasonable

c >hether or not R.A. No. 8180 is unconstitutional violates the constitutional prohibition

a"ainst 'onopolies# co'binations in restraint of trade and unfair co'petition.

6E7: ,.C-.ST4T,T4-.A7

1" T6ERE 4S .- ,.,E E7E9AT4-. -F 7E94S7AT4E -5ER *ASE -.

C-E7ETE.ESS A. S,FF4C4E.C; -F STA.AR TESTS

(t &ill be noted that !on"ress epressly provided in R.A. No. 8180 that full dere"ulation &ill

start at the end of @arch 199# and ,ull dere"ulation at the end of @arch 199 'ain" it

co'plete. The president is to ti'e it as far as practicable &hen the prices of crude oil and

petroleu' products in the &orld 'aret are declining and &hen the echan"e rate of the

peso in relation to the 4- dollar is stable. The dictionary 'eanin"s of the &ords $as far as

practicable#$ $declinin"$ and $stable$ are &ell settled and cannot confuse 'en of reasonable

intelli"ence.

2" E- 3/2 4S AR*4TRAR;

A perusal of section 1/ of R.A. No. 8180 &ill readily reveal that it only enu'erated t&o

factors to be considered by the %epart'ent of Ener"y and the Oce of the


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8180. The E)ecutive i! #ereft of any right to alter either #y !u#traction or addition

the !tandard! !et in R"A" .o" 8180 for it ha! no o%er to 'a(e la%!" (n the cases at

bar# the Eecutive co'in"led the factor of depletion of the O

tatad v secretary of energy

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