Department Circular No. 2003-03-002
PROVIDING FOR
THE RELAXATION OF THE MINIMUM INVENTORY REQUIREMENTS OF ALL OIL COMPANIES AND
BULK SUPPLIERS OPERATING IN THE COUNTRY
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 concomitant with the policy
of ensuring continuous, adequate and stable supply of energy, in respect of the
conservation, stockpiling and storage of energy resources;
WHEREAS,
Executive Order No. 134
requires the Oil Companies and Bulk Suppliers to maintain a sufficient minimum
inventory of petroleum, for purposes of ensuring a continuous, adequate and
stable supply of Petroleum Crude Oil and Products, in cases where domestic and
international events threaten or restrict the supply of Petroleum Crude Oil and
Products to the Philippines such as, but not limited to, terrorist attacks,
armed conflict in the Middle East and in other regions from which the
Philippines draws or transits its supply of Petroleum Crude Oil and Products,
and other similar events;
WHEREAS, Section 5 of
Department Circular No.
2003-01-001, requires all Oil Companies, except Refiners operating in the
country, and Bulk Suppliers to maintain a minimum inventory equivalent to fifteen
(15) Days Supply of Petroleum Products, excluding LPG, which shall be
maintained at seven (7) Days Supply.
WHEREAS, the same Section provides that Refiners shall maintain a minimum
inventory equivalent to thirty (30) Days Supply consisting of Petroleum Crude
Oil and refined Petroleum Products;
WHEREAS, Section 7 of the same Circular provides for the
Secretary of the Department of Energy to make
a determination as to the commencement and duration, of the compliance of the
Minimum Inventory Level Requirement;
WHEREAS, with the outbreak of the US-Iraq war, current crude prices in
the world market started to soften and the country has recorded a high level of
inventory of in-country stocks of petroleum;
NOW THEREFORE,
the following rules are
hereby promulgated, relaxing the minimum inventory level requirement to
all Oil Companies and Bulk Suppliers operating in the country.
SECTION
1. Minimum Inventory Level
All Oil Companies, except Refiners and Bulk
Suppliers operating in the country, shall maintain a minimum inventory
equivalent to seven (7) Days Supply of Petroleum Products, excluding LPG, which
shall also be maintained at seven (7) Days Supply.
Refiners on the other hand, shall maintain
a minimum inventory equivalent to fifteen (15) Days Supply consisting of
Petroleum Crude Oil and refined Petroleum Products.
The required minimum inventories shall
include Petroleum Crude Oil and Products stock, on shore and en route to stockpoints within the country, but shall exclude
importations still in-transit to the country during the period specified in
Section 7 of
Department Circular 2003-01-001.
SEC.
2.
Product Type/Mix to be Stocked
The type and mix of products to be stocked shall still be in accordance to Section 6 of
Department Circular 2003-01-001.
All other provisions of the same Circular,
particularly Sections 7, 8 and 9 shall still be in effect upon effectivity of
this Circular.
SEC. 3.
Effectivity
These Guidelines shall take effect upon
complete publication in a newspaper of general circulation.
Issued in
VINCENT
S. PÉREZ
Secretary
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