Republic
Act No. 6952
AN ACT ESTABLISHING THE
PETROLEUM PRICE STANDBY FUND TO SUPPORT THE OIL PRICE STABILIZATION FUND (OPSF), AND APPROPRIATING FUNDS THEREFOR
SECTION 1.
The Petroleum Price Standby Fund is hereby established
to support the Oil Price Stabilization Fund (OPSF) to
cover claims arising from transactions up to November 30, 1989 and, whenever feasible,
to maintain oil prices at December 1, 1989 retail/pump price level. The Fund shall be deposited
in the National Treasury and administered by the Office of the President. The administration, utilization, and
disposition of the Petroleum Price Standby Fund herein established shall be subject to the audit jurisdiction of the
Commission on Audit (COA)
which shall promulgate the necessary accounting and auditing rules and
regulations to carry out the provisions of this Act.
SEC.
2. Application of the Fund shall
be subject to the following conditions:
(1) That the Fund shall be used to reimburse the oil companies for: (a) cost increases of imported crude oil and finished petroleum products resulting from foreign exchange rate adjustments and/or increases in world market prices of crude oil; (b) cost underrecovery incurred as a result of fuel oil sales to the National Power Corporation (NPC); and (c) other cost underrecoveries incurred as may be finally decided by the Supreme Court;
(2) That the return on investment of the oil companies does not exceed twelve percent (12%); and
(3) That no amount of the Petroleum Price Standby Fund shall be used to pay any oil company which has an outstanding obligation to the Government without said obligation being offset first, subject to the requirements of compensation or offset under the Civil Code.
SEC.
3. The amount of Five billion
pesos (P 5,000,000,000.00) is hereby appropriated for this purpose
which shall be sourced from excess revenues from ad valorem tax and/or
import duty on crude oil and finished petroleum products, incremental dividends
and receipts from government corporations and overall savings of the National
Government. Any claims against the Fund
in excess of Five billion pesos (P 5,000,000,000.00) shall be
sourced from the 1991 budget.
SEC. 4. The
Department of Finance and
Department of Budget and Management shall
prescribe the necessary rules and regulations to implement this Act.
SEC. 5. The
Department of Budget and Management shall,
within ten (10) days after the end of each month, submit to Congress a monthly
report on the releases to each oil company and
outstanding balance of the Fund.
SEC. 6. This Act shall take effect
upon its publication in at least two (2) newspapers of general circulation.
Approved, May 17, 1990
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