EXECUTIVE ORDER No. 471
DECLARING FULL DEREGULATION OF THE DOWNSTREAM OIL INDUSTRY
WHEREAS, Republic Act No. 7638,* otherwise known as the "Department of Energy Act of 1992," provides that, "at the end of four years from its effectivity last December 1992, the Department [of Energy] shall, upon approval of the President, institute the programs and timetable of deregulation of appropriate energy projects and activities of the energy sector";
WHEREAS, Section 19 of Republic Act No. 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998," provides that "[T]that when the public interest so requires, the President may accelerate the start of full deregulation upon the recommendation of the DOE and the Department of Finance (DOF) when the prices of crude oil and petroleum products in the world market are declining and the value of the peso in relation to the US dollar is stable, taking into account relevant trends and prospects; Provided, further, That the foregoing provision notwithstanding, the five (5)-month Transition Phase shall continue to apply to LPG, regular gasoline...
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Executive Orders
Declaring Full Deregulation Of The Downstream Oil Industry
Executive Order No. 471
Summary of Executive Order No. 471
Declaring Full Deregulation of the Downstream Oil Industry
- Pursuant to Republic Act No. 7638 (Department of Energy Act of 1992), the Department of Energy shall institute programs and timetable for deregulation of appropriate energy projects and activities after four years from December 1992.
- Under Republic Act No. 8479 (Downstream Oil Industry Deregulation Act of 1998), Section 19:
- The President may accelerate the start of full deregulation upon recommendation of the Department of Energy (DOE) and Department of Finance (DOF) when:
- Prices of crude oil and petroleum products in the world market are declining.
- The value of the peso in relation to the US dollar is stable.
- A five (5)-month Transition Phase shall continue to apply to LPG, regular gasoline, and kerosene as socially-sensitive petroleum products, and these products shall be covered by the automatic pricing mechanism during this period.
- Recent developments favor the acceleration of full deregulation:
- Prices of crude oil and petroleum products in the world market are beginning to be stable and on a downtrend since January 1998.
- The exchange rate of the peso in relation to the US dollar has been stable for the past three months, averaging around P40.00 to one US dollar.
- Executive Order No. 377 dated 31 October 1996 provides the institutional framework for the administration of the deregulated industry by defining the functions and responsibilities of various government agencies.
- Deregulation of the industry will foster a truly competitive market which can better achieve the social policy objectives of fair prices and adequate, continuous supply of environmentally-clean and high-quality petroleum products.
- The President declares the full deregulation of the downstream oil industry, except that LPG, regular gasoline, and kerosene shall be covered by the Automatic Pricing Formula pursuant to R.A. No. 8479.
Declaring Full Deregulation of the Downstream Oil Industry
- Pursuant to Republic Act No. 7638 (Department of Energy Act of 1992), the Department of Energy shall institute programs and timetable for deregulation of appropriate energy projects and activities after four years from December 1992.
- Under Republic Act No. 8479 (Downstream Oil Industry Deregulation Act of 1998), Section 19:
- The President may accelerate the start of full deregulation upon recommendation of the Department of Energy (DOE) and Department of Finance (DOF) when:
- Prices of crude oil and petroleum products in the world market are declining.
- The value of the peso in relation to the US dollar is stable.
- A five (5)-month Transition Phase shall continue to apply to LPG, regular gasoline, and kerosene as socially-sensitive petroleum products, and these products shall be covered by the automatic pricing mechanism during this period.
- Recent developments favor the acceleration of full deregulation:
- Prices of crude oil and petroleum products in the world market are beginning to be stable and on a downtrend since January 1998.
- The exchange rate of the peso in relation to the US dollar has been stable for the past three months, averaging around P40.00 to one US dollar.
- Executive Order No. 377 dated 31 October 1996 provides the institutional framework for the administration of the deregulated industry by defining the functions and responsibilities of various government agencies.
- Deregulation of the industry will foster a truly competitive market which can better achieve the social policy objectives of fair prices and adequate, continuous supply of environmentally-clean and high-quality petroleum products.
- The President declares the full deregulation of the downstream oil industry, except that LPG, regular gasoline, and kerosene shall be covered by the Automatic Pricing Formula pursuant to R.A. No. 8479.