REQUIRING OIL COMPANIES AND BULK SUPPLIERS TO MAINTAIN A SUFFICIENT MINIMUM INVENTORY OF PETROLEUM, FOR PURPOSES OF ENSURING CONTINUITY, ADEQUACY AND STABILITY OF CRUDE AND FUEL…

WHEREAS, the above development
notwithstanding, the country is still largely dependent on imported oil
for the transportation sector;

WHEREAS, recent and prevailing
domestic and international events, such as the escalating tensions and
conflicts obtaining in Middle Eastern countries, have highlighted the
need for the country to adopt and implement prudent initiatives to
ensure continuous, adequate and stable supply of petroleum products in
response to imminent and actual threats to our petroleum supply;

WHEREAS, under the Downstream Oil
Industry Deregulation Act of 1998 (RA 8479), in relation to the
Department of Energy Act of 1992 (RA 7638), the Secretary of Energy is
authorized to exercise such powers concommitant with the policy of
ensuring continuous, adequate and stable supply of energy, in respect of
the conservation, stockpiling and storage of energy resources.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1.       All
oil companies and bulk suppliers operating in the country shall
maintain a minimum inventory of petroleum stock in an amount sufficient
to ensure a continuous, adequate and stable supply of petroleum products
should domestic and international events, such as, but not limited to
terrorist attacks, armed conflicts in the Middle East and in other
regions whence the Philippines draws or secures its petroleum supply,
threaten or restrict the supply of petroleum to the Philippines.

SECTION 2.       To comply with the requirements under Section 1 of this Order, the Secretary of Energy is hereby directed to:

(i)      determine
the existence of the circumstances envisaged in Section 1 that would
trigger the application of the minimum inventory requirements; the types
and mix of petroleum products to be stocked by the oil companies and
bulk suppliers; the appropriate levels of minimum petroleum inventory of
oil companies and bulk suppliers; and the commencement and duration of
compliance by the oil companies and bulk suppliers therewith;

(ii)     promulgate appropriate issuances, directives and orders to implement this Order; and

(iii)    perform any and all acts necessary and appropriate to carry out the purpose of this Order.

SECTION 3.       Pursuant
to Section 15 (b) of Republic Act of 8479, all oil companies and bulk
suppliers shall provide the Department of Energy with a weekly report,
under oath, of compliance with the minimum inventory requirement and
such other matters required for the duration specified by the Secretary
of Energy, in accordance with Section 2 hereof.

SECTION 4.       All
orders, issuances, rules and regulations, or parts thereof, which are
inconsistent with this Order, are hereby repealed or modified
accordingly.

SECTION 5.       This Executive Order shall take effect immediately upon its publication in a newspaper of general circulation in the Philippines.

Adopted: 14 Oct. 2002

BY THE PRESIDENT:

(SGD.) ALBERTO G. ROMULO
Executive Secretary