Release of Funds To Finance the Coco-Diesel/Fuel Oil Program
Letter of Instructions No. 1167, issued on October 2, 1981, addresses the economic challenges facing the Philippine coconut industry due to a significant drop in global coconut oil prices, which have fallen from 42 to 24 US cents per pound. To support the struggling industry and protect the livelihoods of over a million coconut farmers, the government mandates a shift in certain sectors, such as electric power generation and land transportation, to use a coconut oil blend as a substitute for traditional fuels. The Philippine Coconut Authority suggests a necessary selling price of 28 US cents per pound to sustain the industry, which requires financial support. Consequently, the Ministry of the Budget is instructed to release an initial subsidy of P145.1 million to implement this transition, with further funds allocated as needed. The Ministry of Energy must also provide regular financial reports to the President regarding the use of these funds.
Quick Answers
- What is Release of Funds To Finance the Coco-Diesel/Fuel Oil Program about?
- Letter of Instructions No. 1167, issued on October 2, 1981, addresses the economic challenges facing the Philippine coconut industry due to a significant drop in global coconut oil prices, which have fallen from 42 to 24 US cents per pound. To support the struggling industry and protect the livelihoods of over a million coconut farmers, the government mandates a shift in certain sectors, such as electric power generation and land transportation, to use a coconut oil blend as a substitute for traditional fuels. The Philippine Coconut Authority suggests a necessary selling price of 28 US cents per pound to sustain the industry, which requires financial support. Consequently, the Ministry of the Budget is instructed to release an initial subsidy of P145.1 million to implement this transition, with further funds allocated as needed. The Ministry of Energy must also provide regular financial reports to the President regarding the use of these funds.
- What type of law is Letter of Instructions No. 1167?
- Release of Funds To Finance the Coco-Diesel/Fuel Oil Program (Letter of Instructions No. 1167) is a Philippine Presidential Issuances enacted by the Congress of the Philippines.
- When was Release of Funds To Finance the Coco-Diesel/Fuel Oil Program enacted?
- Release of Funds To Finance the Coco-Diesel/Fuel Oil Program (Letter of Instructions No. 1167) was enacted on Oct 2, 1981.
- What is the citation for Release of Funds To Finance the Coco-Diesel/Fuel Oil Program?
- Release of Funds To Finance the Coco-Diesel/Fuel Oil Program, Letter of Instructions No. 1167, Oct 2, 1981 (Philippines)
Law Information
- Reference Number
- Letter of Instructions No. 1167
- Date Enacted
- Category
- Presidential Issuances
- Subcategory
- Letters of Instructions
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
October 2, 1981
LETTER OF INSTRUCTIONS NO. 1167
| TO | : | The Minister of Energy |
| The Minister of the Budget | ||
| The Treasurer of the Philippines | ||
| The Administrator of the Philippine Coconut Authority |
The depressed price of crude coconut oil at the world markets brought about by an oversupply has caused the export price of coconut oil to drop recently from 42 to about 24 US cents per pound. At this current price, the coconut industry will be exporting at a substantial loss. The situation is further aggravated by the existence of a surplus that can not be accommodated either in the domestic or foreign markets. Lately, some coconut mills have stopped processing copra, thereby affecting seriously the livelihood of over a million Filipino coconut farmers. acd
To alleviate the plight of the coconut industry and for it to operate viably in order to protect the livelihood of our coconut farmers, it becomes necessary to require certain industries such as electric power generation and land transportation to partially shift to the use of a coconut oil/fuel oil/diesel oil blend as a substitute for industrial fuel oil and/or diesel oil. cd i
However, the Philippine Coconut Authority has indicated that the selling price of coconut oil should be about 28 US cents per pound or P4.282 per liter to keep the coconut industry viable. This selling price will exceed the present cost of petroleum-based fuel which the power and transport industries can not absorb.
To date, the coco-diesel/fuel oil program has involved the purchase and delivery of 48.8 million liters which requires a subsidy of One Hundred Forty-Five Million One Hundred Thousand Pesos (P145,100,000) (inclusive of levy). Accordingly, the Ministry of the Budget and the Treasurer of the Philippines are hereby directed to release immediately to the Ministry of Energy an initial outlay of One Hundred Forty-Five Million One Hundred Thousand Pesos (P145,100,000) from the Special Fund created pursuant to Section 8 (j) of R.A. 6173, as amended, to finance the foregoing. Additional releases shall be made from time to time as the coco-diesel/fuel oil program may require upon direction of the President.
The Ministry of Energy is directed to submit to the President periodic reports accounting for the disbursement and use of the amount released to it.
This Letter of Instruction shall take effect immediately.
DONE in the City of Manila, this 2nd day of October, in the year of Our Lord, Nineteen Hundred and Eighty-One.
Cite This Law
Release of Funds To Finance the Coco-Diesel/Fuel Oil Program, Letter of Instructions No. 1167, Oct 2, 1981 (Philippines)
Release of Funds To Finance the Coco-Diesel/Fuel Oil Program, Letter of Instructions No. 1167 (Phil. 1981)
Related Laws
- Release of Fund To Finance the Test Program for the Coco-Diesel Fuel BlendLetter of Instructions No. 1173 • Nov 16, 1981 • Presidential Issuances
- Increasing the Specific Tax on Kerosene, Lubricating Oil, Gasoline, Bunker Fuel Oil and Diesel Fuel OilPresidential Decree No. 392 • Feb 17, 1974 • Presidential Issuances
- Imposing an Ad Valorem Tax on Certain Manufactured Oils and Other Fuels, Bunker Fuel Oil and Diesel Fuel Oil; Revising the Rates of Specific Tax Thereon; Abolishing the Oil Industry Special Fund; and for Other PurposesPresidential Decree No. 1956 • Oct 10, 1984 • Presidential Issuances
- Exemption from Miller's Tax of Sales of Coconut Oil to the PNOCLetter of Instructions No. 1361 • Nov 2, 1983 • Presidential Issuances
- Release to PNOC of Funds for Spot Purchase of Diesel Oil and Naphta from KuwaitLetter of Instructions No. 848 • Apr 18, 1979 • Presidential Issuances
- Recognition of All Sales of Coconut Oil to the PNOC as Export SalesLetter of Instructions No. 1272 • Oct 25, 1982 • Presidential Issuances
Browse More Presidential Issuances
Explore other laws in the Presidential Issuances category.
View All Presidential IssuancesNeed Help Understanding This Law?
Ask our AI assistant to explain provisions, implications, or related laws.
Ask AI About This Law