Amending R.A. No. 6173 As Amended (Oil Industry Commission Act)

August 21, 1979

PRESIDENTIAL DECREE NO. 1633

AMENDING REPUBLIC ACT NO. 6173 AS AMENDED FOR THE PURPOSE OF CLARIFYING THE PROCEDURAL AND OTHER REQUIREMENTS UNDER SECTION 17 THEREOF IN RELATION TO PAYMENTS TO THE SPECIAL FUND CREATED UNDER SECTION 8(J) OF THE SAME, AND FOR OTHER PURPOSES

WHEREAS, under Section 8(j) of Republic Act No. 6173 as amended, a Special Fund was created to be utilized for the development of energy sources, to subsidize the importation of crude oil and refined petroleum products, as well as to finance social and economic projects as determined by the President of the Philippines;

WHEREAS, under Section 17 of the same Act as amended, the Oil Industry Commission, now the Board of Energy, was empowered to require through an appropriate Order, payment to the Special Fund in an amount not exceeding P0.15 per liter of refined petroleum product; cd i

WHEREAS, in order to obviate any doubt and possible misinterpretations of the said Section 17 and of the whole Act, it is necessary to clarify the necessary requirements when the Board of Energy exercises its powers under said section and assure that all past and future expenditures are in accordance with the guidelines governing the purposes and uses of the Special Fund;

WHEREAS, it is also necessary to increase the resources of the Special Fund to enable the Government to do the following:

(a) Respond quickly and take adequate supply stabilization measures during periods of short supply occasioned by un-anticipated increases in oil prices, production cutbacks and other supply related developments;

(b) Accelerate the development of non-oil, indigenous and renewable sources of energy and finance the Government programs relating to energy conservation and the development of non-conventional sources of energy; and

(c) To enable the Government to redirect expenditures and consumption patterns for the purpose of accelerating the development of strategic activities that will catalyze industrial and economic development.

WHEREAS, it is necessary that this amendment be made immediately in view of the crisis generated not only by escalating prices of crude but also because of continuous supply shortages;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order as follows:

  Section 17 of Republic Act No. 6173 as amended, hereby further amended to read as follows: cdt

"Section 17. Payment to Special Fund. — In addition to the payments that may be required under Section 8 (j) hereof, the Board of Energy is hereby empowered to require, through an appropriate Order, payment to the Special Fund created under Section 8(j) of this Act, of amounts not exceeding a weighted average of Thirty Centavos (P0.30) per liter of all refined petroleum products, as certified by the President of the Philippines, taking into account the requirements and purposes of the Special Fund, the effect of the payment on prices of petroleum products and corollarily, its cost impact on the economy and/or the consuming public and the cost and profit levels of the industry."

DONE in the City of Manila, this 21st day of August, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.

Published in the Official Gazette, Vol. 75 No. 53, 10577-13 Supp., on December 31, 1979.