Requiring Oil Companies and Bulk Suppliers to Maintain A Sufficient Minimum Inventory of Petroleum, For Purposes of Ensuring Continuity, Adequacy and Stability of Crude and Fuel Supply

MALACAÑANG
Manila

BY THE PRESIDENT OF THE PHILIPPINES

Executive Order No. 134 October 14, 2002

REQUIRING OIL COMPANIES AND BULK SUPPLIERS TO MAINTAIN A SUFFICIENT MINIMUM INVENTORY OF PETROLEUM, FOR PURPOSES OF ENSURING CONTINUITY, ADEQUACY AND STABILITY OF CRUDE AND FUEL SUPPLY

WHEREAS, the Philippines has, pursuant to a program of diversifying fuel sources for power generation, reduced its dependence on fossil fuels for power requirements;

WHEREAS, the above development notwithstanding, the country is still largely dependent on imported oil for the transportation sector;

WHEREAS, recent and prevailing domestic and International events, such as the escalating tensions and conflicts obtaining in Middle Eastern countries, have highlighted the need for the country to adopt and implement prudent initiatives to ensure continuous, adequate and stable supply of petroleum products ion response to imminent and actual threats to our petroleum supply;

WHEREAS, under the Downstream Oil Industry Deregulation Act of 1998 (RA 8479), in relation to the Department of Energy Act of 1992 (RA 7638), the Secretary of Energy is authorized to exercise such powers concomitant...

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Executive Order No. 134

Objective: Ensuring continuity, adequacy and stability of crude and fuel supply

- All oil companies and bulk suppliers operating in the Philippines shall maintain a minimum inventory of petroleum stock sufficient to ensure continuous, adequate and stable supply of petroleum products in case of events that threaten or restrict the supply of petroleum to the Philippines. (Section 1)

- The Secretary of Energy is directed to:
    - Determine the circumstances that would trigger the minimum inventory requirements, the types and mix of petroleum products to be stocked, the appropriate levels of minimum petroleum inventory, and the commencement and duration of compliance. (Section 2)
    - Promulgate appropriate issuances, directives and orders to implement the Order. (Section 2)
    - Perform any and all acts necessary and appropriate to carry out the purposes of the Order. (Section 2)

- Oil companies and bulk suppliers shall provide the Department of Energy with a weekly report, under oath, of compliance with the minimum inventory requirement and other required matters for the duration specified by the Secretary of Energy. (Section 3)

- All orders, issuances, rules and regulations, or parts thereof, which are inconsistent with this Order, are hereby repealed or modified accordingly. (Section 4)

- The Executive Order shall take effect immediately upon its publication in a newspaper of general circulation in the Philippines. (Section 5)