Expanding The Sources And Utilization Of The Oil Price Stabilization Fund (Opsf) By Amending Presidential Decree No. 1956.
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Expanding The Sources And Utilization Of The Oil Price Stabilization Fund (Opsf) By Amending Presidential Decree No. 1956.
Executive Order No. 137
January 24, 1986
Case Overview and Summary
Summary of Executive Order No. 137Expansion of the Oil Price Stabilization Fund (OPSF) and its Sources and Utilization
- The OPSF was created to reimburse oil companies for cost increases due to exchange rate adjustments and/or increases in world market prices of crude oil and imported petroleum products. (Section 1)
- The OPSF can be sourced from:
a) Any increase in tax collection from ad valorem tax or customs duty on petroleum products due to exchange rate adjustments. (Section 1a)
b) Any increase in tax collection from lifting tax exemptions of government corporations. (Section 1b)
c) Any additional amount imposed on petroleum products through an order from the Board of Energy. (Section 1c)
d) Any resulting peso cost differentials when actual peso costs paid by oil companies are less than the costs computed using the reference foreign exchange rate. (Section 1d)
- The OPSF shall be used for:
1) Reimbursing oil companies for cost increases in crude oil and imported petroleum products due to exchange rate adjustments and/or increases in world market prices. (Section 1.1)
2) Reimbursing oil companies for possible cost underrecovery incurred due to reduction of domestic prices of petroleum products. Cost underrecovery includes:
i) Reduction in oil company take without corresponding reduction in landed cost of oil inventories. (Section 1.2.i)
ii) Reduction in internal ad valorem taxes due to price reductions. (Section 1.2.ii)
iii) Other factors determined by the Ministry of Finance resulting in cost underrecovery. (Section 1.2.iii)
- The OPSF shall be administered by the Ministry of Energy. (Section 1)
- The Minister of Finance shall promulgate necessary rules and regulations in consultation with the Ministry of Energy. (Section 2)
- This Executive Order shall be effective starting with the domestic products price reduction authorized on January 24, 1986. (Section 4)
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Executive Issuances
Executive Orders
oil price stabilization fund
petroleum products
exchange rate adjustments
world market prices
tax collection
tax exemptions
cost increases
cost underrecovery
price reductions
domestic prices
oil companies
importation
manufacturing
marketing
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Expanding The Sources And Utilization Of The Oil Price Stabilization Fund (Opsf) By Amending Presidential Decree No. 1956.
Executive Order No. 137
•January 24, 1986
EXECUTIVE ORDER NO. 137 January 24, 1986
EXPANDING THE SOURCES AND UTILIZATION OF THE OIL PRICE STABILIZATION FUND (OPSF) BY AMENDING PRESIDENTIAL DECREE NO. 1956.
WHEREAS, an Oil Price Stabilization Fund was created under Section 8 of the Presidential Decree No. 1956 to be used to reimburse the oil companies for cost increases on crude oil and imported petroleum products resulting from exchange rate adjustments and/or increases in world market prices in the desire to stabilize the prices of petroleum products for a longer period despite exchange rate adjustments or world market price changes;
WHEREAS, Letter of Instructions No. 1431 provided for the utilization of the Oil Price Stabilization Fund to reimburse oil companies the additional costs of importation of crude oil and petroleum products due to fluctuations in foreign exchange rates, to assure adequate and continuous supply of petroleum products at reasonable prices;
WHEREAS, the spot prices of crude oil in the international market have been unstable;
WHEREAS, it is the policy of the government to recognize immediately declines in crude oil prices by...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Executive Orders
oil price stabilization fund
petroleum products
exchange rate adjustments
world market prices
tax collection
tax exemptions
cost increases
cost underrecovery
price reductions
domestic prices
oil companies
importation
manufacturing
marketing
EXECUTIVE ORDER NO. 137 January 24, 1986
EXPANDING THE SOURCES AND UTILIZATION OF THE OIL PRICE STABILIZATION FUND (OPSF) BY AMENDING PRESIDENTIAL DECREE NO. 1956.
WHEREAS, an Oil Price Stabilization Fund was created under Section 8 of the Presidential Decree No. 1956 to be used to reimburse the oil companies for cost increases on crude oil and imported petroleum products resulting from exchange rate adjustments and/or increases in world market prices in the desire to stabilize the prices of petroleum products for a longer period despite exchange rate adjustments or world market price changes;
WHEREAS, Letter of Instructions No. 1431 provided for the utilization of the Oil Price Stabilization Fund to reimburse oil companies the additional costs of importation of crude oil and petroleum products due to fluctuations in foreign exchange rates, to assure adequate and continuous supply of petroleum products at reasonable prices;
WHEREAS, the spot prices of crude oil in the international market have been unstable;
WHEREAS, it is the policy of the government to recognize immediately declines in crude oil prices by...
Login to see full content