Republic of the Philippines
Congress of the Philippines
Metro ManilaEighth Congress
Republic Act No. 6952 May 17, 1990
AN ACT ESTABLISHING THE PETROLEUM PRICE STANDBY FUND TO SUPPORT THE OIL PRICE STABILIZATION FUND (OPSF), AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled::
Section 1. The Petroleum Price Standby Fund is hereby established to support the Oil Price Stabilization Fund (OPSF) to cover claims arising from transactions up to November 30, 1989 and, whenever feasible, to maintain oil prices at December 1, 1989 retail/pump price level. The Fund shall be deposited in the National Treasury and administered by the Office of the President. The administration, utilization, and disposition of the Petroleum Price Stand-by Fund herein established shall be subject to the audit jurisdiction of the Commission on Audit (COA) which shall promulgate the necessary accounting and auditing rules and regulations to carry out the provisions of this Act.
Section 2. Application of the Fund shall be subject to the following...
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Republic Acts
AN ACT ESTABLISHING THE PETROLEUM PRICE STANDBY FUND TO SUPPORT THE OIL PRICE STABILIZATION FUND (OPSF)
Republic Act No. 6952
Summary of Republic Act No. 6952
Establishment of the Petroleum Price Standby Fund (Section 1):
- The Petroleum Price Standby Fund is established to support the Oil Price Stabilization Fund (OPSF).
- It covers claims arising from transactions up to November 30, 1989, and whenever feasible, maintains oil prices at the December 1, 1989 retail/pump price level.
- The Fund is deposited in the National Treasury and administered by the Office of the President.
- The Commission on Audit (COA) has audit jurisdiction and shall promulgate necessary accounting and auditing rules and regulations.
Application of the Fund (Section 2):
- The Fund shall be used to reimburse oil companies for:
- Cost increases of imported crude oil and finished petroleum products resulting from foreign exchange rate adjustments and/or increases in world market prices of crude oil (Section 2(1)(a)).
- Cost underrecovery incurred as a result of fuel oil sales to the National Power Corporation (NPC) (Section 2(1)(b)).
- Other cost underrecoveries incurred as may be finally decided by the Supreme Court (Section 2(1)(c)).
- The return on investment of the oil companies should not exceed twelve percent (12%) (Section 2(2)).
- No amount of the Fund shall be used to pay any oil company with an outstanding obligation to the Government without said obligation being offset first, subject to the requirements of compensation or offset under the Civil Code (Section 2(3)).
Appropriation (Section 3):
- Five billion pesos (P5,000,000,000.00) is appropriated for this purpose.
- The amount shall be sourced from excess revenues from ad valorem tax and/or import duty on crude oil and finished petroleum products, incremental dividends and receipts from government corporations, and overall savings of the National Government.
- Any claims against the Fund in excess of Five billion pesos (P5,000,000,000.00) shall be sourced from the 1991 budget.
Implementation (Section 4):
- The Department of Finance and Department of Budget and Management shall prescribe the necessary rules and regulations to implement this Act.
Reporting (Section 5):
- The Department of Budget and Management shall, within ten (10) days after the end of each month, submit to Congress a monthly report on the releases to each oil company and outstanding balance of the Fund.
Effectivity (Section 6):
- This Act shall take effect upon its publication in at least two (2) newspapers of general circulation.
Establishment of the Petroleum Price Standby Fund (Section 1):
- The Petroleum Price Standby Fund is established to support the Oil Price Stabilization Fund (OPSF).
- It covers claims arising from transactions up to November 30, 1989, and whenever feasible, maintains oil prices at the December 1, 1989 retail/pump price level.
- The Fund is deposited in the National Treasury and administered by the Office of the President.
- The Commission on Audit (COA) has audit jurisdiction and shall promulgate necessary accounting and auditing rules and regulations.
Application of the Fund (Section 2):
- The Fund shall be used to reimburse oil companies for:
- Cost increases of imported crude oil and finished petroleum products resulting from foreign exchange rate adjustments and/or increases in world market prices of crude oil (Section 2(1)(a)).
- Cost underrecovery incurred as a result of fuel oil sales to the National Power Corporation (NPC) (Section 2(1)(b)).
- Other cost underrecoveries incurred as may be finally decided by the Supreme Court (Section 2(1)(c)).
- The return on investment of the oil companies should not exceed twelve percent (12%) (Section 2(2)).
- No amount of the Fund shall be used to pay any oil company with an outstanding obligation to the Government without said obligation being offset first, subject to the requirements of compensation or offset under the Civil Code (Section 2(3)).
Appropriation (Section 3):
- Five billion pesos (P5,000,000,000.00) is appropriated for this purpose.
- The amount shall be sourced from excess revenues from ad valorem tax and/or import duty on crude oil and finished petroleum products, incremental dividends and receipts from government corporations, and overall savings of the National Government.
- Any claims against the Fund in excess of Five billion pesos (P5,000,000,000.00) shall be sourced from the 1991 budget.
Implementation (Section 4):
- The Department of Finance and Department of Budget and Management shall prescribe the necessary rules and regulations to implement this Act.
Reporting (Section 5):
- The Department of Budget and Management shall, within ten (10) days after the end of each month, submit to Congress a monthly report on the releases to each oil company and outstanding balance of the Fund.
Effectivity (Section 6):
- This Act shall take effect upon its publication in at least two (2) newspapers of general circulation.