Legal Authority and Framework
- The Downstream Oil Industry Deregulation Act of 1998 (RA 8479) and the Department of Energy Act of 1992 (RA 7638) provide the legal basis.
- The Secretary of Energy is empowered to ensure supply stability through conservation, stockpiling, and storage initiatives.
- Executive Order No. 134 relies on these statutes to mandate inventory requirements.
Mandatory Minimum Petroleum Inventory Requirements
- All oil companies and bulk suppliers in the Philippines must maintain a minimum petroleum stock.
- The inventory level must be sufficient to assure continuous, adequate, and stable petroleum product supplies.
- This requirement activates when supply threats arise, such as terrorist attacks or armed conflicts affecting supplying regions.
Role and Powers of the Secretary of Energy
- The Secretary shall:
- Identify triggering circumstances that necessitate minimum inventory maintenance.
- Determine the specific types and mix of petroleum products to be stocked.
- Set appropriate minimum inventory levels for oil companies and bulk suppliers.
- Specify commencement and duration for compliance.
- The Secretary issues necessary directives, orders, or issuances to implement the order.
- The Secretary is tasked with all acts necessary to fulfill this mandate.
Reporting and Compliance Monitoring
- Oil companies and bulk suppliers must submit weekly compliance reports to the Department of Energy under oath.
- Reports must indicate adherence to minimum inventory levels and any other requested information.
- Duration of reporting aligns with the period specified by the Secretary of Energy.
Repeal and Modification of Conflicting Rules
- Any existing orders, rules, or regulations inconsistent with this mandate are repealed or modified accordingly to conform.
Effectivity of the Order
- The Executive Order takes effect immediately upon publication in a widely circulated Philippine newspaper.