Question & AnswerQ&A (EXECUTIVE ORDER NO. 471)
The primary objective is to declare the full deregulation of the downstream oil industry in the Philippines.
Republic Act No. 7638, otherwise known as the Department of Energy Act of 1992.
The President may accelerate full deregulation upon the recommendation of the DOE and Department of Finance when global prices of crude oil and petroleum products are declining and the peso's value relative to the US dollar is stable.
Section 19 allows the President to accelerate full deregulation based on recommendations from the DOE and DOF, but mandates a five-month transition phase for LPG, regular gasoline, and kerosene as socially sensitive petroleum products.
LPG, regular gasoline, and kerosene are considered socially sensitive petroleum products and are subject to the transition phase.
They are covered by the Automatic Pricing Formula pursuant to Republic Act No. 8479.
The prices of crude oil and petroleum products in the world market were stable and on a downtrend since January 1998, and the peso's exchange rate to the US dollar was stable for the past three months.
It provides an institutional framework for the administration of the deregulated downstream oil industry by defining functions and responsibilities of government agencies.
Deregulation is expected to foster a truly competitive market that can achieve social policy objectives such as fair prices, adequate and continuous supply of petroleum products, which are environmentally clean and high quality.
The Executive Order took effect immediately upon its issuance on March 14, 1998.