Title
Amend R.A. 6173: Oil Import Compensation
Law
Presidential Decree No. 429-a
Decision Date
Apr 6, 1974
An amendment to Republic Act 6173 grants the Oil Commission authority to authorize importation of crude oil and petroleum products to address shortages and stabilize prices, while allowing importers to recover their costs.

Measures to Stabilize Supply and Prices

  • The Commission may implement temporary price adjustments for petroleum products to relieve shortages.
  • It may adopt an administrative mechanism requiring payments to a Special Fund.
  • Payments to the Special Fund are to be made by all persons or entities engaged in the petroleum industry.
  • This mechanism ensures the importer of crude oil or petroleum products can recover the costs incurred in importation.

Scope of Authorized Actions by the Commission

  • Besides authorizing importation, the Commission may take any other necessary measures to alleviate shortage.
  • This ensures flexibility and effectiveness in managing the petroleum supply crisis.

Repeal and Modification of Inconsistent Provisions

  • Any prior acts, executive orders, administrative orders, rules, or regulations inconsistent with this Decree are repealed or modified accordingly.

Effectivity of the Decree

  • The Decree takes effect immediately upon approval.

Key Legal Concepts

  • Public interest as a basis for government intervention in petroleum imports.
  • Use of government agencies and government-owned corporations to secure supplies.
  • Establishment of a Special Fund for cost recovery linked to importation activities.
  • Authority for temporary price adjustments in response to market shortages.
  • Legal certainty through repeal/modification of inconsistent laws and regulations.

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