QuestionsQuestions (LETTER OF INSTRUCTIONS NO. 155)
To direct PNOC and, through it, oil companies/refineries importing crude oil and other oil products from Arab countries to secure for the Philippines all “non-participating oil” needed for total national consumption.
In context, “non-participating oil” refers to oil supply that is made available to friendly countries under the OAPEC decision even if it exceeds the September 1973 level, subject to restrictions (no re-export outside Arab countries and no substitution for non-Arab oil).
The decision provides oil “according to actual needs even though more than September 1973,” but oil should not be re-exported outside Arab countries and should not substitute for non-Arab oil. Importers must align their procurement and trading practices accordingly.
It treats the international OAPEC decision as officially transmitted to the Philippine Government and confirmed via the UN channel, thereby providing the factual and policy basis for the President’s administrative instruction to domestic stakeholders.
The LOI is addressed to Mr. Ronnie Velasco, Chairman of PNOC. PNOC is expected to notify oil companies and refineries and to oversee implementation by securing the required oil allocations for national consumption.
They are expected to secure for the Philippines all the “non-participating oil” referred to, for total national consumption, consistent with the OAPEC restrictions noted in the LOI.
It expresses an expectation that no further steps will be necessary to protect government interests due to past cooperation; however, it signals the possibility of further protective measures if there is failure to implement the Arab decision.
It requires submission to the President of all developments and obligates the government to obtain information, data, and statistics on crude oil and other oil products brought into the country in any form or capacity. This supports monitoring, verification, and policy enforcement.
It indicates broad coverage: regardless of the type of oil product, the manner of entry, or the role of the importing party, relevant data must be collected and reported.
Private entities may be regulated when Congress or the Constitution authorizes the executive branch or administrative agencies to regulate certain industries. The LOI functions as a directive within such regulatory framework, but compliance usually depends on delegated authority and applicable regulations.
Concerns include lack of notice, vagueness, or arbitrary enforcement. Mitigation would involve implementing regulations, clear standards, adequate hearings/opportunity to respond where required, and ensuring sanctions are based on existing laws or properly issued implementing rules under statutory authority.
It demonstrates executive policy direction to ensure energy supply through obligated procurement. Market effects could include changes in contracting, allocation, inventory planning, and increased government oversight through mandatory data gathering.
Students should examine whether there is statutory authority for PNOC and the executive to regulate importation, allocate energy supplies, and require reporting—e.g., energy, oil, and public utility regulation frameworks, plus general administrative law delegation and enforcement statutes.