Title
Implementing Guidelines for Oil Inventory
Law
Doe Department Circular No. Dc-2003-01-001
Decision Date
Jan 20, 2003
The Department of Energy mandates oil companies and bulk suppliers to maintain minimum inventory levels of petroleum products to ensure a stable supply during domestic and international crises, with specific requirements for different types of suppliers.

Questions (DOE DEPARTMENT CIRCULAR NO. DC-2003-01-001)

It is adopted pursuant to Executive Order No. 134 (14 Oct 2002), Republic Act No. 7638 (creating the Department of Energy), and Republic Act No. 8479 (Downstream Oil Industry Deregulation Act of 1998).

To ensure a continuous, adequate, and stable supply of petroleum crude oil and products to the Philippines when domestic or international events threaten or restrict supply (e.g., terrorist attacks, armed conflict in regions supplying/transiting to the Philippines).

All Oil Companies and Bulk Suppliers engaged in any activity of the Downstream Oil Industry in the Philippines.

It is the equivalent number of days of in-country stocks based on the average daily sales or liftings for the past six (6) months.

Any person who refines/manufactures/processes and/or imports/exports and stores, distributes, and sells petroleum products.

Any person engaged in the sale of petroleum products in bulk sourced through direct importation.

Fifteen (15) Days Supply of petroleum products, excluding LPG; LPG must be maintained at seven (7) Days Supply.

Thirty (30) Days Supply consisting of petroleum crude oil and refined petroleum products.

Included: petroleum crude oil and product stock on shore and en route to stockpoints within the country. Excluded: importations still in-transit to the country during the period specified in Section 7.

Under Section 4, the Secretary may require minimum inventory when circumstances threatening supply exist. Under Section 7, the Secretary determines when the requirement commences and when it terminates (upon determination that the circumstances no longer exist), and notifies companies in writing.

A determination by the Secretary of Energy that the circumstances enumerated in Section 4 exist and warrant imposition.

Yes. It may vary per Oil Company or Bulk Supplier, but priority must be given to stockpiling diesel and gasoline (transport sector), LPG for household consumption, and fuel oil for power generation.

They must submit weekly reports, prepared under oath, to the Bureau. The reports must be on a per crude and per product basis and include actual and projected importations and local purchases and other matters required for compliance.

The Bureau conducts periodic inventory checks on storage facilities, bulk plants, terminals, or depots to reconcile actual submissions.

Noncompliance constitutes a violation of Section 12 of RA 8479, in relation to Section 15 of RA 8479, and Section 5(c) of RA 7638, and is punishable according to those provisions.

Upon complete publication in a newspaper of general circulation.


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