DOE
Administrative Order No. 95-001
RELAXING CERTAIN
NON-PRICING REGULATIONS GOVERNING THE DOWNSTREAM PETROLEUM INDUSTRY
WHEREAS, pursuant to Section 5 (e) of
Republic Act No. 7638, otherwise known as the
Department of Energy (DOE) Act of 1992, the
DOE was mandated to “regulate private sector activities relative to energy
projects as provided for under existing laws: Provided, That the
Department
shall endeavor to provide for an environment conducive to free and active
private sector participation and involvement in all energy activities”;
WHEREAS, the same section provides further that “At the end of four (4) years
from the effectivity of this
Act, the
Department shall, upon approval of the President, institute the programs and
timetable of deregulation of appropriate energy projects and activities of the
energy industry”;
WHEREAS, preparatory to the full deregulation of the petroleum industry and in
order to provide for an environment conducive to free and active private sector
participation and investment in all energy activities, there is a need to relax
some of the rules governing the downstream sector of the petroleum business;
WHEREAS, the relaxation of rules governing the petroleum downstream sector prior
to the actual deregulation may attract the entry of new players and thus bring
about competition in a perceived oligopolistic industry;
WHEREFORE, premises considered, the
DOE, as a matter of policy, hereby orders the relaxation of the non-pricing
rules and regulations governing the following downstream petroleum activities
subject to such conditions that the
Energy Industry Administration Bureau (EIAB) may impose:
1.
Allow the
importation and/or exportation of petroleum products by duly authorized
entities: Provided, That import/export prices are competitive and comparable
with domestic and/or international market prices:
Provided, further, That importers have the necessary storage, handling and
distribution facilities.
2.
Allow the
construction, establishment, and operation of processing/blending plants,
depots, storage, docking, gasoline stations and other marketing activities
without prior public hearing.
3.
Allow the
construction and operation, without prior public hearing, of LPG refilling
plants outside Metro Manila and adjacent provinces of Rizal, Bulacan, Pampanga,
Laguna, and
Within one hundred twenty (120) days from the date hereof, the
EIAB shall formulate the pertinent rules and regulations to implement this
Order after public consultation thereon, for the
Secretary’s approval, after which this Order together with its duly
promulgated implementing rules and regulations shall become effective.
Let this Order be published once a week, for two (2) consecutive weeks, in at
least two (2) newspapers of general circulation for the information and guidance
of all concerned.
FRANCISCO L. VIRAY
Acting Secretary
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