Department
Circular No. 2007-05-0005
IMPLEMENTING THE
PHILIPPINE NATIONAL STANDARD SPECIFICATION FOR BUNKER FUEL OILS
(PNS/DOE QS 006:2005)
Whereas,
Republic Act (R. A.) No. 7638 “An Act Creating the
Department of Energy (DOE)” tasks the
DOE to formulate rules and regulations as may
be necessary to guide the operations of both government and private entities
involved in energy resource supply and distribution;
Whereas,
R. A. No. 8479 otherwise known as the “Downstream Oil
Industry Deregulation Act of 1998”, provides for the deregulation of the
downstream oil industry to foster a truly competitive market which can truly
achieve the social policy objectives of fair prices, adequate and continuous
supply of environmentally-clean and high quality petroleum products;
Whereas,
Rule V, Section 18 b and b (2) of the Implementing
Rules and Regulations (IRR) of R. A. 8479, provides that the
Oil Industry Management Bureau (OIMB) shall
monitor other forms of product misrepresentation or mislabeling to ensure
conformance to the Philippine National Standards of quality;
Whereas,
Section 26 of
R. A. No. 8749 otherwise known as the
“Philippine Clean Air Act of 1999” provides that the
DOE together with the
Department of Environment and Natural Resources
(DENR),
Bureau of Product Standards
(BPS) and the
Department of Science and
Technology (DOST) and other stakeholders shall set specifications for all
types of fuel and fuel-related products and improve fuel composition;
Whereas,
it is the intent of
R.A. 8749 that the specifications of
fuels shall be reviewed and revised for further improvement in harmony with the
continuing development of fuel quality standards worldwide;
Whereas,
PNS/DOE QS 006:2005 was promulgated on April 18, 2006 to supersede PNS 21:1977
as the latest revision/update of quality standard specification for Bunker Fuel
Oils (BFO);
Now, Therefore,
the following guidelines are hereby adopted to effectively implement the
Philippine National Standard specification for BFO:
1. Starting
June 1, 2007, only BFO conforming to PNS/DOE QA 006:2005 shall be manufactured,
imported, sold, offered for sale, dispensed, or introduced into commerce in the
Philippines;
2.
All
oil company manufacturers/importers of BFO shall submit to the
OIMB within ten (10) days after the end of
each quarter a report of the production/importation and each sales of each type
of BFO with the corresponding quality specification. Companies importing BFO for their own use
shall submit a similar report covering their importations and consumption;
3. The
oil company/ies shall conduct quality control tests and undertake regular
monitoring of all activities being undertaken at their refineries, bulk plants
terminals, depots, tank trucks, power plants, barges, commercial and
non-commercial ships nationwide to ensure that the quality of all BFO sold
meets the latest BFO specifications provided in PNS/DOE QS 006:2005;
4. Effectively,
PNS/DOE QS 006:2005 provides the minimum standard requirements for BFO and
shall be the reference standard for all BFO and shall be the reference standard
for all BFO commercially available in the country;
5. Failure
to comply with the provisions of this Department Circular shall subject the
violator to the corresponding sanctions imposed by the appropriate laws,
DOE rules and regulations and the
Philippine Clean Air Act.
This
Department Circular shall take effect upon publication in any newspaper of
general circulation.
RAPHAEL P.M. LOTILLA
Secretary
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