What is the Oil Fund?: The Oil Fund comprises of a monetary RESERVE that will be used to maintain domestic retail price level at a set ceiling in times when global petroleum prices soar by subsidizing domestic oil producers and importers.
Which petroleum products are being subsidized?: From 1979-1990, the Government had regulated retail prices of all types of petroleum products both imported and domestic. Then in 1991, regulations to control retail prices of Gasoline, Kerosene, Diesel and Fuel oil were abrogated and free competition was allowed in the market. The only type of petroleum product that is still being regulated today (up until 31 December 2000) is Liquid Petroleum Gas (LPG).