Limitation of Tax-Free Purchase of Petroleum Products by the AFP-CES for Resale

April 18, 1979

LETTER OF INSTRUCTIONS NO. 847

WHEREAS, it is imperative for the Government to take necessary measures to reduce the consumption of petroleum products by all sectors of the country in view of the worldwide oil crisis; aisa dc

WHEREAS, it is essential that the members of the Armed Forces of the Philippines, the retirees, war veterans, their widows, orphans and dependents actively participate in the ongoing energy conservation program by regulating their consumption of petroleum products sold tax-free by the AFP Commissary and Exchange Service;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order the strict implementation of the following measures:

1. Under the direction of the Minister of National Defense and in consultation with the proper officials of the Ministry of Finance and Ministry of Energy, the Chief of Staff, AFP, shall review and, if necessary, revise existing AFPCES rules and/or procedure governing its operations and issuance of credentials or papers authorizing the purchase of tax-free consumer goods, particularly petroleum products, to insure maximum utilization of its working capital by dealing only in basic commodities most needed by its authorized customers. The Board of Trustees of AFPCES shall be responsible for the judicious and equitable allocation of such tax-exempt commodities among the authorized persons under PD 83. cd i

2. Upon recommendation of the Board of Trustees, AFPCES, or whenever circumstances so warrant and with the approval of the Minister of National Defense, the Chief of Staff, AFP, shall institute appropriate administrative and/or legal action against any authorized AFPCES customer who may be found violating any AFPCES rules and/or procedure or otherwise found abusing his tax-exemption privilege. Such administrative and/or legal action shall likewise apply to any AFPCES personnel who may be found to be responsible for or involved, directly or otherwise, in the commission of such violation.

3. Based on available data and in line with the policy of the government, the purchase of tax-free petroleum products for resale to authorized customers by AFPCES shall not exceed the quantities hereunder indicated for each product in any calendar month. acd

Premium Gasoline	340,000 Liters
Regular Gasoline	80,000  Liters
Lubricating Oil	6,000 Liters

Such purchase of tax-free petroleum products shall be made by AFPCES from one oil company only in any calendar year.

4. These Instructions shall be effective immediately. acd

DONE in the City of Manila, this 18th day of April, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.