DOE issues new rules on oil import reporting
March 18, 2011
DOE issues new rules on oil import reporting
By Donnabelle L. Gatdula
(The Philippine Star) Updated March 16, 2011
MANILA, Philippines - The Department of Energy (DOE) has issued new
rules on the reportorial requirements for oil importation to put more
teeth on the compliance of oil players.
By virtue of its mandate under the Downstream Oil Industry
Deregulation Act of 1998, the DOE said the circular seeks to ensure
that the country has adequate supply of petroleum products.
Department Circular (DC) 2011-03-002 reiterates the reportorial
requirements of the downstream oil industry players. Under the DC,
industry participants are required to submit the following: notice
prior to every importation; weekly inventory reports; and other
reportorial requirements.
Recently, the DOE issued Circular 2011-03-0002 which increased the
minimum inventory requirements of all companies and bulk suppliers
operating in the country. The circular was issued on Feb. 28 and will
take effect after publication in a newspaper of general circulation.
All oil companies, except refiners, operating in the country and bulk
suppliers shall maintain a minimum inventory equivalent to 15 days
supply of petroleum products, excluding liquefied petroleum gas, which
shall be maintained at seven days supply; and refiners shall maintain
a minimum inventory equivalent to 30 days supply consisting of
petroleum crude oil and refined petroleum products.
In a report from the DOE’s Oil Industry Management Bureau (OIMB), the
country’s daily fuel consumption is estimated at about 300,000 barrels
or 48 million liters. This translates to about P1.6 billion per day at
$120 per barrel and an exchange rate of P44 to a dollar.
Through these reports, the DOE will be able to assess the oil stock
inventory to get an accurate picture of inventory vis-a-vis the
country’s daily consumption.
With regard to the current oil price spike, the DOE is continuing its
efforts to cushion its impact on the country’s most vulnerable sector
and has been meeting with the oil industry participants to encourage
them to increase the number of gasoline stations offering discounts to
public utility vehicles (PUVs) and to possibly increase the discounts.
The DOE said the mechanics for these are being worked out and are
expected to be finalized at the end of the month.