WHEREAS, the international petroleum situation is becoming more critical;

WHEREAS, it is therefore necessary to insure the efficient utilization of the petroleum supply of the country in order to secure its optimum use consistent with development needs;

WHEREAS, for this purpose, there is need to establish an effective system for the efficient and equitable allocation and distribution of petroleum products among the various end-users, particularly the small end-users in the rural areas; and

WHEREAS, Presidential Decree No. 1416 grants continuing authority to the President to reorganize the administrative structure of the National Government.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, and pursuant to the authority vested in me by Presidential Decree No. 1416, do hereby order and direct the following:

SECTION 1. There is hereby created an Emergency Petroleum Operations Board, hereinafter referred to as the Board, which shall be composed of the Minister of Energy, as chairman; and the Minister of Agriculture, the Minister of Local Government and Community Development, the Minister of National Defense and the Minister of Trade, or their duly designated representatives, as members. The Board shall be attached to the Ministry of Energy for policy and program coordination.

SEC. 2. The Board shall be responsible for formulating policies, guidelines, and rules and regulations for the allocation and distribution of petroleum products to all consumers and for developing an overall plan of action for implementing the allocation and distribution system, including such rationing schemes as may be necessary. In carrying out this responsibility on the basis of sectoral requirements, the Board shall consult as necessary with other ministries and agencies concerned, including the National Economic and Development Authority (NEDA), the Ministry of Industry and the Ministry of Public Works, Transportation and Communications, among others. The Board may also designate such other ministries and agencies as may be necessary to assist in the allocation and distribution of petroleum products to special categories of users.

SEC. 3. The primary responsibilities of the various ministries with respect to the allocation and distribution of petroleum products shall be as follows:

(a) The Ministry of Energy shall be responsible for providing the overall leadership in the formulation of policies and guidelines as well as for overseeing the operation of the allocation and distribution system. Accordingly, the Ministry of Energy shall provide the necessary technical and administrative support to the Board and shall, for this purpose, provide the necessary facility that shall serve as the central monitoring system of the Board for the prompt transmittal of directives, guidelines and information to agencies concerned including those in the private sector, as well as the receipt and assessment of feedback and reports on the progress of the implementation of the allocation and distribution system. For this purpose, the Ministry of Energy, as well as the other member agencies of the Board particularly the Ministry of Local Government and Community Development, shall be authorized to avail, as necessary, of the communications networks and facilities of other agencies of the government, in addition to such communications facilities as they themselves may have.

(b) The Ministry of Agriculture shall be responsible for providing effective representation of the agricultural production sector, especially in behalf of small end-users, in the rural areas who are engaged in food production in order to assure them of an adequate supply of their petroleum products requirements.

(c) The Ministry of Local Government and Community Development shall be responsible for the implementation of the allocation and distribution system, the monitoring of the implementation thereof from the regional down to the barangay levels, and the conduct of surveys to effect the comprehensive listing to end-users of petroleum products at the barangay level.

(d) The Ministry of National Defense shall be responsible for the enforcement of laws relative to prohibited acts and activities specified under Batas Pambansa Blg. 33 and Letter of Instructions No. 869 as well as of the rules and regulations of the Board pertaining to the operation of the allocation and distribution system.

(e) The Ministry of Trade shall be responsible for monitoring price movements with respect to petroleum products and such petroleum-related products as may be considered necessary.

The respective primary responsibilities of the abovementioned agencies shall extend, as applicable, down to the regional and sub-regional, including the provincial, city, municipal and barangay levels.

SEC. 4. At the regional level, there shall be an inter-agency committee which shall be directly responsible to the Board, to be composed of the MLGCD regional director, as chairman; and a representative of the Ministry of Energy, a representative of the Ministry of Trade, the regional representative of the Ministry of Agriculture, and the Regional Commander of the Philippine Constabulary, as members.

The Committee shall be responsible for overseeing and coordinating the implementation of the system for the allocation and distribution of petroleum products within the region and the monitoring of the progress of the implementation thereof, including an assessment of the problems encountered and taking, subject to such guidelines as shall be established by the Board, and/or recommending remedial measures as necessary to resolve such problems. The Committee shall submit periodic reports to the Board on the progress of implementation within the region.

The MLGCD regional director shall serve as the executive officer of the Committee and shall provide the leadership in directing the implementation of action programs and measures as may be decided upon by the Committee through the respective agencies concerned within the region. For this purpose, he shall have the authority to call upon the services of other regional offices, particularly the Bureau of Fisheries and Aquatic Resources and the Land Transportation Commission.

SEC. 5. At the provincial level, there shall be an inter-agency committee which shall be directly responsible to the regional inter-agency committee above provided, to be composed of the provincial governor, as chairman; and the MLGCD provincial development officer, the provincial commercial agent of the Ministry of Trade, the provincial representative of the Ministry of Agriculture, and the provincial commander of the Philippine Constabulary, as members.

The Committee shall be responsible for overseeing and coordinating the implementation of the system for the allocation and distribution of petroleum products within the province and the monitoring of the progress of the implementation thereof, including an assessment of the problems encountered and taking, subject to such guidelines as shall be established by the Board, and/or recommending remedial measures as necessary to resolve such problems.

The MLGCD provincial development officer shall serve as the executive officer of the Committee. He shall be accountable for the implementation of action programs and measures for the allocation and distribution of petroleum products within the province through the agencies concerned within the province. For this purpose, he shall have authority to call upon the services of other provincial offices, particularly those of the Bureau of Fisheries and Aquatic Resources and Land Transportation Commission.

SEC. 6. At the city level, there shall be an inter-agency committee which shall be directly responsible to the regional inter-agency committee above provided, to be composed of the city mayor, as chairman; and the MLGCD city development officer, the city station commander of the Integrated National Police and the chairman of the city barangay federation, as members.

The Committee shall be responsible for the implementation of the system for the allocation and distribution of petroleum products within the city and the monitoring of the progress of the implementation thereof, including an assessment of the problems encountered and taking, subject to such guidelines as shall be established by the Board, and/or recommending remedial measures as necessary to resolve such problems.

The city development officer shall serve as the executive officer of the Committee and shall coordinate with other city officials in the implementation of the system for the allocation and distribution of petroleum products and shall act upon complaints lodged by end-users respecting such allocation and distribution.

The city station commander shall be responsible for the enforcement of laws relative to prohibited acts and activities specified under Batas Pambansa Blg. 33 and Letter of Instructions No. 869 as well as the rules and regulations of the Board governing the distribution of petroleum products within the city.

SEC. 7. At the municipal level, there shall be an inter-agency committee which shall be directly responsible to the provincial inter-agency committee above provided, to be composed of the municipal mayor, as chairman; the MLGCD municipal development officer, the municipal station commander of the Integrated National Police and the chairman of the municipal barangay federation, as members.

The Committee shall be responsible for the implementation of the system for the allocation and distribution of petroleum products within the municipality and the monitoring of the progress of the implementation thereof, including as assessment of the problems encountered and taking, subject to such guidelines as shall be established by the Board, and/or recommending remedial measures as necessary to resolve such problems.

The municipal development officer shall serve as the executive officer of the Committee and shall coordinate with other municipal officials in the implementation of the system for the allocation and distribution of petroleum products and shall act upon complaints lodged by end-users respecting such allocation and distribution.

The municipal station commander shall be responsible for the enforcement of laws relative to prohibited acts and activities specified under Batas Pambansa Blg. 33 and Letter of Instructions No. 869 as well as the rules and regulations of the Board governing the distribution of petroleum products within the municipality.

SEC. 8. The barangay captains shall, under the supervision and control of the city or municipal development officer, be responsible for the registration of all end-users of petroleum products in their respective barangays, including but not limited to the owners of motor vehicles, motorized equipment, fishing boats and farm implements or machineries. They shall be responsible for overseeing the equitable distribution of petroleum products within their respective territorial jurisdiction, and reporting cases of violations of law and regulations as well as oversights and shortcomings in allocation policies and procedures to the appropriate superior or lateral authorities concerned.

SEC. 9. With respect to the National Capital Region, the Metro Manila Commission shall be responsible for overseeing and coordinating the implementation of the allocation and distribution of petroleum products within the region, in accordance with the policies, guidelines, and rules and regulations prescribed by the Board.

SEC. 10. All laws, decrees, orders, instructions, rules and regulations which are inconsistent with, or contrary to, the provisions of this Executive Order shall hereby repealed or modified accordingly.

SEC. 11. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 23rd day of July, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.


By the President:

(SGD.) JACOBO C. CLAVE
Presidential Executive Assistant