QuestionsQuestions (DOE DEPARTMENT CIRCULAR NO. DC-2011-03-0002)
It is issued to reinstate (and thus increase back) the minimum inventory requirements for oil companies and bulk suppliers to ensure a continuous, adequate, and stable supply of petroleum crude oil and products in the Philippines during threats that restrict supply (e.g., Middle East civil unrest).
Under Section 5 of DC 2003-01-001: (1) oil companies (except refiners) and bulk suppliers must maintain minimum inventory equivalent to 15 days supply of petroleum products, excluding LPG (LPG must be maintained for 7 days); and (2) refiners must maintain minimum inventory equivalent to 30 days supply consisting of petroleum crude oil and refined petroleum products.
It relaxed the minimum inventory requirements because of softening crude prices and high levels of in-country stocks of petroleum.
It expressly repeals DC-2003-03-002.
It expressly reinstates DC-2003-01-001.
It cites current political and civil unrest in several Middle East countries that requires reinstatement of minimum inventory requirements to ensure stability of supply in the Philippines.
All oil companies operating in the country except refiners, and all bulk suppliers operating in the country, as well as refiners (with different inventory days and components).
Fifteen (15) days supply of petroleum products, excluding liquefied petroleum gas (LPG).
Seven (7) days supply of liquefied petroleum gas (LPG).
Thirty (30) days supply consisting of petroleum crude oil and refined petroleum products.
Because refiners have different roles and supply-chain positions; thus, the rule sets separate inventory days and specifies that refiners maintain inventory of crude oil plus refined products, while non-refiners/bulk suppliers maintain petroleum product inventories (with separate LPG treatment).
The relaxed regime under DC-2003-03-002 is removed, and the original minimum inventory requirements under DC-2003-01-001 become the binding standard again.
Upon complete publication in a newspaper of general circulation.
It makes publication a condition precedent to enforceability; the circular becomes effective only after full compliance with the publication requirement in a newspaper of general circulation.
It gives examples such as terrorist attacks, armed conflict in the Middle East and other regions, and other similar events threatening or restricting supply.
DC-2011-03-0002 functions as an amending/reverting issuance: it repeals the earlier relaxation (DC-2003-03-002) and reinstates the original guidelines (DC-2003-01-001).