Law Summary

Introduction

This resolution, adopted on April 29, 1996, by the Energy Regulatory Board (ERB), establishes the requirements for individuals and companies directly importing refined petroleum products for their own use, in alignment with Republic Act No. 8180.

Purpose and Background

• Legal Basis: The resolution is grounded in the Oil Price Stabilization Fund (OPSF), as established under Presidential Decree No. 1956 and amended by Executive Order No. 137.
• Objective: It aims to minimize price fluctuations resulting from exchange rate changes and increases in global oil prices.
• Need for Payment: Direct importers are mandated to contribute to the OPSF to support its resources.

Key Provisions

• Direct Importers Obligations:

  • Importers of petroleum products for personal use must pay contributions to the OPSF.
  • The amount to be paid is specified in ERB Resolution No. 96-09 dated April 10, 1996.

• Department of Energy's Role:

  • The Department of Energy is tasked with informing direct importers about the requirements of this resolution.

Definitions

• Direct Importers: Persons and companies importing refined petroleum products solely for their own consumption, not for resale.
• Oil Price Stabilization Fund (OPSF): A fund created to stabilize oil prices and minimize volatility due to external market influences.

Important Requirements

• Contribution to OPSF:
  • Importers are required to pay an OPSF charge on imported petroleum products.
  • Withdrawals from the OPSF by these importers can occur only up to the amount they have contributed.

Timeframes and Effectivity

• Effective Date: The resolution is effective immediately upon adoption.
• Application Scope: It applies specifically to bills of lading issued after April 16, 1996, coinciding with the effectivity of Republic Act No. 8180.

Communication and Guidance

• Distribution of Resolution: Copies of the resolution are to be provided to:
  • Oil companies
  • Direct importers of finished petroleum products
  • Relevant government agencies including the Department of Finance, National Economic and Development Authority, and Bureau of Customs.

Implications on Pricing

• Price Stability: The resolution explicitly states that it will not affect existing wholesale and retail prices of petroleum products.

Key Takeaways

• Direct importers of petroleum products for personal use must pay contributions to the OPSF.
• The Department of Energy is responsible for disseminating information about these requirements.
• The resolution is effective immediately and applies to imports after April 16, 1996.
• Existing pricing structures for petroleum products remain unchanged.

This structured summary encapsulates the essential elements of ERB Resolution No. 96-10, ensuring clarity and accessibility for stakeholders involved in the direct importation of petroleum products in the Philippines.