Presidential
Decree No. 1128
FURTHER AMENDING
REPUBLIC ACT NUMBERED SIX THOUSAND ONE HUNDRED SEVENTY-THREE,
AS AMENDED, OTHERWISE KNOWN AS THE OIL INDUSTRY COMMISSION ACT
WHEREAS,
in order to ensure prompt and effective execution and enforcement by the Oil
Industry Commission of its decision, orders, rules and regulations, its power
to punish summarily for contempt must be enlarged to include instances of
willful failure or refusal, without just cause, to comply with its decisions,
orders, rules and regulations;
WHEREAS,
for the abovementioned purpose, it is likewise necessary that the Commission be
empowered to impose administrative fines for violations of its decisions,
orders, rules and regulations, and to assess and collect surcharges on
delinquent payments of fees;
WHEREAS,
a procedure for appeal from decisions or orders of the Commission in cases
involving matters other than the fixing of prices of petroleum products has to
be provided;
WHEREAS,
in view of the foregoing requisites, the charter of the Oil Industry Commission
needs to be amended;
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the
SECTION
1. Section two of the
Act
is hereby amended to read as follows:
“SEC.
2. Definition of Terms.
“(a) ‘Commission’ shall mean the Oil
Industry Commission.
“(b) ‘Petroleum’ shall be construed to
mean a complex mixture of 84 to 87 percent carbon, 13 to 11 percent hydrogen,
and 1 to 4 percent impurities such as nitrogen, sulfur, and helium. It shall include products commercially known
as natural gas, gasoline and kerosene in liquid form and a wide range of
lubricating oils, asphalt and pitch in solid state.
“(c) ‘Petroleum products’ shall mean
products formed in the course of refining crude petroleum through distillation,
cracking, solvent refining and chemical treatment, coming out as primary stocks
from the refinery like: LPG, naphtha gasolines, solvents, kerosenes, aviation
turbine fuels, automatic/industrial diesel oils, industrial/residual fuel oils,
waxes and petrolatums, asphalts, bitumens, coke and refinery sludges, or such
refinery petroleum fractions which have not undergone any process or treatment
as to produce separate chemically defined compounds in a pure or commercially
pure state; and to which various substances may have been added to render them
suitable for particular uses, provided that the resultant product contains not
less than 50% by weight of such petroleum products.”
SEC.
2. Section 2 of the
Act
is hereby renumbered as Section 3 and paragraph (d) thereof is amended to read
as follows:
“SEC.
3. (d) To protect PETROLEUM
dealers and distributors from unfair and onerous trade conditions;
SEC.
3. Section 3 of the same
Act is hereby renumbered as Section 4 thereof.
SEC.
4. Section 4 of the same
Act is hereby renumbered as Section 5 thereof.
SEC.
5. Section 5 of the same
Act is hereby renumbered as Section 6 thereof and amended
to read as follows:
“SEC.
6. Staff.
– The Commission shall
appoint and maintain an adequate staff, which shall include a Secretary-EXECUTIVE
DIRECTOR who shall be a member of the Philippine Bar with at least five years
experience in the active practice of law in the
“The members of the technical staff,
except for those performing purely clerical functions, shall possess at least a
bachelor’s degree in the line of specialization required by their respective
positions: Provided, That except as
to positions which are policy-determining highly technical or primarily
confidential, all positions in the Commission are subject to the provisions of
the Civil Service Law and Rules, but
are exempt from the regulations of the Wage and Position Classification
Office.”
SEC.
6. Section 6 of the same
Act as is hereby renumbered as Section 7 and Paragraph (d)
thereof is amended to read as follows:
“SEC. 7. (d) To encourage and assist in
the organization of associations of Filipino oil AND PETROLEUM dealers and
distributors throughout the
SEC.
7. Section 7 of the
Act
is hereby renumbered as Section 8 thereof.
SEC.
8. Section 8 of the Act is hereby
renumbered as Section 9 and paragraph (b) thereof is amended to read as
follows:
“SEC.
9. (b) Require all persons,
corporations and other entities engaged in the petroleum industry and their
associations or institutes, to furnish it with such relevant information as it
may need to discharge its duties under this Act, and to exercise its functions
and powers under Section SEVEN, EIGHT AND TEN OF THIS ACT.”
SEC.
9. Section 9 of the
Act
is hereby renumbered as Section 10 thereof.
SEC.
10. Section 10 of the Act is hereby
renumbered as Section 11 thereof and amended to read as follows:
“SEC. 11. Commission Procedures.
– All
inquiries, studies, hearings, investigations and proceedings conducted by the
Commission shall be governed by rules adopted by the Commission, and in the
conduct thereof the Commission shall not be bound by the technical rules and
evidence; Provided, that the
Commission may summarily punish for contempt by a fine not exceeding five
hundred pesos or by imprisonment not exceeding thirty days or both, any person
guilty of such misconduct in the presence of the Commission or so near thereto
as to seriously interrupt any hearing or session or any proceedings before it,
including cases in which a person willfully fails or refuses, without just
cause, to comply with a summons, subpoena, subpoena duces tecum, DECISION OR ORDER, RULES AND REGULATIONS LEGALLY
ISSUED OR PROMULGATED by the Commission or being present at a hearing, session
or investigation, refuses to be sworn as a witness or to answer questions when
lawfully required to do so, or to furnish information required by the
Commission under this Act. The sheriff
and other police agencies of the place where the hearing or investigation is
conducted shall, upon the request of the Commission, assist it to enforce the
provision of this Section.
SEC.
11. Section 11 of the
Act
is hereby renumbered as Section 12 thereof and amended to read as follows:
“SEC.
12. Review of Commission’s Order; Commission’s Authority to Grant
Provisional Relief.
– A party
adversely affected by a decision or any order of the Commission, may, within
seven (7) days from receipt of the said decision or order, appeal in writing,
stating clearly and distinctly the ground relied upon, to the Office of the
President, which shall have exclusive authority and jurisdiction to review,
reverse, modify or amend the same. The
decision or order of the Commission in such cases, shall be final, unless
reversed, altered or modified, either on appeal or on review motu propio within the period
hereinbelow stated.
“The office of the President shall
likewise have the power to review, motu propio,
any decision or order of the Oil Industry Commission fixing the prices of
petroleum products. For this purpose,
certified copies of such decisions or orders of the Commission shall be
forwarded to the Office of the President immediately upon promulgation
thereof.
“The decision of the Office of the
President, on appeal or after review motu
propio, shall be final. Unless the
Office of the President directs otherwise, appeal or motu propio review shall not stay execution or implementation of
the decisions or orders of the Oil Industry Commission, which shall be
executory upon the expiration of seven (7) days after their promulgation.
“The Commission may, upon the filing
of an application, petition or complaint or at any stage thereafter, and
without prior hearing, on the basis of supporting papers duly verified or
authenticated, grant provisional relief or motion of a party in the case or on
its own initiative, without prejudice to a final decision after hearing, should
the Commission find that the pleadings, together with such affidavits,
documents and other evidence which may be submitted in support of the motion,
substantially support the provisional order.”
SEC.
12. Section 12 of the same
Act is hereby renumbered as Section 13 thereof.
SEC.
13. Section 13 of the same
Act is hereby renumbered as Section 14 thereof.
SEC.
14. Section 14 of the same
Act is hereby renumbered as Section 15 thereof and amended
to read as follows:
“SEC. 15. Appropriations.
– For the
proper implementation of this Act, the sum of one million five hundred thousand
pesos is hereby appropriated out of any funds in the National Treasury not
otherwise appropriated for the operating expenses of the Commission for the
fiscal years nineteen hundred and seventy-one and nineteen hundred and
seventy-two. Any unobligated balance of
this initial appropriation may, however, still be used by the Commission in
subsequent fiscal years.
“Beginning with fiscal year nineteen
hundred and seventy-three, the operational expenses of the Commission shall be
drawn from fees and charges collected under the authority of Section 15,
hereafter to be cited as Section 16 of this Act and from application,
licensing, registration and other fees or charges AND ADMINISTRATIVE FINES AND
SURCHARGES WHICH THE COMMISSION IS HEREBY AUTHORIZED TO IMPOSE OR COLLECT.
“ALL APPLICATION, LICENSING,
REGISTRATION AND OTHER FEES OR CHARGES HEREBY AUTHORIZED TO BE IMPOSED OR
COLLECTED SHALL BE PAYABLE ON OR BEFORE THE DATES PRESCRIBED BY THE
COMMISSION. IF THE SAID FEES OR CHARGES
ARE NOT PAID WITHIN THE PRESCRIBED TIME, THE AMOUNT THEREOF SHALL BE INCREASED
BY TWENTY-FIVE PER CENTUM, THE INCREMENT TO BECOME PART OF THE FEE OR
CHARGE.
“IN THE EXERCISE OF ITS FUNCTIONS AND
ENFORCEMENT AND IMPLEMENTATION OF THIS LAW, ITS DECISIONS, ORDERS, AND
REGULATIONS, THE COMMISSION MAY REQUIRE THAT AMOUNTS UNREFUNDED TO PURCHASERS
BY DEALERS FOUND GUILTY OF OVERPRICING IN THE SALES OF PETROLEUM PRODUCTS, BE
DEPOSITED WITH ITS CASHIER AS A TRUST FUND OF THE COMMISSION, SAID AMOUNTS TO
BE DISPOSED OF AS FINANCIAL ASSISTANCE TO THE BARANGAY OF THE LOCALITY WHERE
THE OVERPRICING WAS COMMITTED OR TO OTHER BARANGAYS IN COORDINATION WITH THE
DEPARTMENT OF LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT. THE FUNDS AND MONIES THAT MAY COME TO THE
POSSESSION OF THE COMMISSION FROM ADMINISTRATIVE FINES OR VIOLATIONS OF ITS
DECISIONS, ORDER, RULES AND REGULATIONS AND FROM SURCHARGES ON DELINQUENT
PAYMENT OF PRESCRIBED FEES, AS WELL AS FROM PAYMENT OF APPLICATION,
REGISTRATION AND LICENSE FEES SHALL BE DISBURSED BY THE COMMISSION FOR THE
HEALTH, WELFARE AND OTHER SIMILAR BENEFITS OF ITS EMPLOYEES, PROVIDED THAT THE ADDITIONAL AMOUNTS SO
DISTRIBUTED DO NOT EXCEED FIFTY PER CENTUM (50%) OF THE ANNUAL BASIC SALARY OF
EACH EMPLOYEE, AND PROVIDED, FURTHER,
THAT SUCH DISBURSEMENTS SHALL BE SUBJECT TO EXISTING RULES AND REGULATIONS.”
SEC.
15. Sections 15, 15-A, 16, 17 and 18 of
the same
Act are hereby renumbered as Sections 16, 17,
18, 19 and 20, respectively, thereof.
SEC.
16. Any provision of law, Presidential
Decree, Executive Order, Letter of Instruction, Administrative Order, rules and
regulations or parts thereof which are inconsistent herewith are hereby
repealed or amended accordingly, except the provisions of Letters of
Instructions Nos. 400 and 360 relative to the instructions given to the
Philippine National Oil Company on the importation of petroleum products.
SEC.
17. This Decree shall take effect
immediately.
Done
in the City of
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