WHEREAS, the above development notwithstanding, the country is still largely dependent on imported oil for the transportation sector;

WHEREAS, recent and prevailing domestic and international events, such as the escalating tensions and conflicts obtaining in Middle Eastern countries, have highlighted the need for the country to adopt and implement prudent initiatives to ensure continuous, adequate and stable supply of petroleum products in response to imminent and actual threats to our petroleum supply;

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 concommitant with the policy of ensuring continuous, adequate and stable supply of energy, in respect of the conservation, stockpiling and storage of energy resources.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1.       All oil companies and bulk suppliers operating in the country shall maintain a minimum inventory of petroleum stock in an amount sufficient to ensure a continuous, adequate and stable supply of petroleum products should domestic and international events, such as, but not limited to terrorist attacks, armed conflicts in the Middle East and in other regions whence the Philippines draws or secures its petroleum supply, threaten or restrict the supply of petroleum to the Philippines.

SECTION 2.       To comply with the requirements under Section 1 of this Order, the Secretary of Energy is hereby directed to:

(i)      determine the existence of the circumstances envisaged in Section 1 that would trigger the application of the minimum inventory requirements; the types and mix of petroleum products to be stocked by the oil companies and bulk suppliers; the appropriate levels of minimum petroleum inventory of oil companies and bulk suppliers; and the commencement and duration of compliance by the oil companies and bulk suppliers therewith;

(ii)     promulgate appropriate issuances, directives and orders to implement this Order; and

(iii)    perform any and all acts necessary and appropriate to carry out the purpose of this Order.

SECTION 3.       Pursuant to Section 15 (b) of Republic Act of 8479, all oil companies and bulk suppliers shall provide the Department of Energy with a weekly report, under oath, of compliance with the minimum inventory requirement and such other matters required for the duration specified by the Secretary of Energy, in accordance with Section 2 hereof.

SECTION 4.       All orders, issuances, rules and regulations, or parts thereof, which are inconsistent with this Order, are hereby repealed or modified accordingly.

SECTION 5.       This Executive Order shall take effect immediately upon its publication in a newspaper of general circulation in the Philippines.

Adopted: 14 Oct. 2002

BY THE PRESIDENT:

(SGD.) ALBERTO G. ROMULO
Executive Secretary