Authorizing as an Emergency Measure, the Importation of Liquefied Petroleum Gas Free From Customs Duties and the Consumer Price Equalization Fund Payment.

EXECUTIVE ORDER NO. 881 March 15, 1983

AUTHORIZING AS AN EMERGENCY MEASURE, THE IMPORTATION OF LIQUEFIED PETROLEUM GAS FREE FROM CUSTOMS DUTIES AND THE CONSUMER PRICE EQUALIZATION FUND PAYMENT.

WHEREAS, the Philippines imports about 50% of its liquefied petroleum gas (LPG) requirements mostly from Saudi Arabia;

WHEREAS, the recent reduction in the crude oil production of Saudi Arabia has resulted in a force majeure reduction of the Philippines' LPG supply by about 14,000 metric tons for March and April this year;

WHEREAS, while alternative supplies are being arranged to cover our needs through June, current spot prices of available LPG have shot up from about $315 before the emergency to as high as $480 to 500 per metric ton and the market is so unstable that government action must be taken immediately;

WHEREAS, at these prevailing spot prices, importers stand to lose substantially unless LPG imports are temporarily exempted from the payment of Customs duties and the Consumer Price Equalization Fund payments;

WHEREAS, even with these exemptions, importers will...

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Summary of Executive Order No. 881

Importation of Liquefied Petroleum Gas (LPG) Exempted from Customs Duties and Consumer Price Equalization Fund Payment
- As an emergency measure due to LPG supply shortage from Saudi Arabia's reduced crude oil production. (Section 1)
- Exemption applies to importation by authorized persons/entities by Bureau of Energy Utilization. (Section 1)
- Exemption valid for the duration of the emergency supply situation, unless terminated earlier by the President. (Section 1)

Adjustment Mechanism for Exemptions
- Minister of Finance authorized to adjust the exemptions based on improvement in supply situation and/or spot prices. (Section 2)
- Adjustments subject to President's approval, upon recommendation of Minister of Energy. (Section 2)
- Adjustments based on the degree of alleviation of LPG supply situation and/or improvements in LPG spot prices compared to the current situation. (Section 2)

Immediate Effect
- The order takes effect immediately. (Section 3)