Conditions Justifying Full Deregulation
- Depletion of the buffer fund by 7 February 1997 as ordered by the Energy Regulatory Board.
- Stable crude oil prices between $21 to $23 per barrel since October 1996, with signs of softening.
- Stable prices of petroleum products internationally, with some declines observed since mid-December 1996.
- Peso exchange rate stability averaging approximately P26.20 to US$1 over the previous twelve months.
Institutional Framework and Implementation
- Executive Order No. 377 (October 31, 1996) establishes the institutional framework for managing the deregulated downstream oil industry.
- It defines roles and responsibilities of various government agencies to administer deregulation effectively.
Objectives and Expected Outcomes
- Full deregulation aims to foster a truly competitive downstream oil market.
- It is intended to achieve social policy objectives such as fair pricing.
- Ensures adequate and continuous supply of petroleum products.
- Emphasizes supply of environmentally clean and high quality petroleum products.
Declaration and Effective Date
- The President, exercising lawful authority, declares the full deregulation of the downstream oil industry.
- The Executive Order becomes effective on 8 February 1997.
Signatories
- Signed by President Fidel V. Ramos.
- Attested by Executive Secretary Ruben D. Torres.