GR 157584 CD
GR 157584 CD
GR 157584 CD
After years of imposing significant controls over the downstream oil industry in the Philippines, the
government decided in March 1996 to pursue a policy of deregulation by enacting Republic Act No.
8180 (R.A. No. 8180) or the "Downstream Oil Industry Deregulation Act of1996."
R.A. No. 8180, this Court concluded the law as invalid because the three key provisions intended to
promote free competition were shown to achieve the opposite result;
R.A. No. 8180's provisions on tariff differential, inventory requirements, and predatory pricing
inhibited fair competition, encouraged monopolistic power, and interfered with the free interaction of
market forces.
Congress responded by enacting R.A. No. 8479 and excluded the offensive provisions found in the
invalidated law. petitioner Garcia again sought to declare the new oil deregulation law
unconstitutional on the ground that it violated Article XII, Section 19 of the Constitution. prescribed
the period for removal of price control on gasoline and other finished petroleum products and set the
time for the full deregulation of the local downstream oil industry.
Petitioner Garcia contended that implementing full deregulation and removing price control at a time
when the market is still dominated and controlled by an oligopoly[5] would be contrary to public
interest, as it would only provide an opportunity for the Big 3 to engage in price-fixing and
overpricing.
Section 19 of R.A. No. 8479 is "glaringly pro-oligopoly, anti-competition, and anti-people," and thus
asked the Court to declare the provision unconstitutional.
Issues:
invokes the exercise by this Court of its power of judicial review, calling for the exercise of judicial
power.
Ruling:
The petition fails to satisfy the very first of these requirements - the existence of an actual case or
controversy
An actual case or controversy is one that involves a conflict of legal rights, an assertion of opposite
legal claims susceptible of judicial resolution; the case must not be moot or academic or based on
extra-legal or other similar considerations not cognizable by a court of justice.
the issue involved must be susceptible of judicial determination.
Excluded from these are questions of policy or wisdom, otherwise referred to as political questions:...
political questions refer "to those questions which, under the Constitution, are to be decided by the
people in their sovereign capacity, or in regard to which full discretionary authority has been
delegated to the legislative... or executive branch of government."
Principles:
For a court to exercise this power, certain requirements must first be met, namely:
(1) an actual case or controversy calling for the exercise of judicial power;
(2) the person challenging the act must have "standing" to challenge; he must have a personal and
substantial interest in the case such that he has sustained, or will sustain, direct injury as a result of its
enforcement;
(3) the question of constitutionality must be raised at the earliest possible opportunity; and
(4) the issue of constitutionality must be the very lis mota of the case.[13]... if an issue is clearly
identified by the text of the Constitution as matters for discretionary action by a particular branch of
government or to the people themselves then it is held to be a political question.