Executive Order No. 881
AUTHORIZING AS AN EMERGENCY MEASURE, THE IMPORTATION OF LIQUEFIED PETROLEUM GAS FREE FROM CUSTOMS DUTIES AND THE CONSUMER PRICE EQUALIZATION FUND PAYMENT
WHEREAS, the Philippines imports about 50% of its liquefied petroleum gas (LPG) requirements mostly from Saudi Arabia;
WHEREAS, the recent reduction in the crude oil production of Saudi Arabia has resulted in a force majeure reduction of the Philippines’ LPG supply by about 14,000 metric tons for March and April this year;
WHEREAS, while alternative supplies are being arranged to cover our needs through June, current spot prices of available LPG have shot up from about $ 315 before the emergency to as high as $ 480 to $ 500 per metric ton and the market is so unstable that government action must be taken immediately;
WHEREAS, at these prevailing spot prices, importers stand to lose substantially unless LPG imports are temporarily exempted from the payment of Customs duties and the Consumer Price Equalization Fund payments;
WHEREAS, even with these exemptions, importers will still incur a small though manageable loss;
WHEREAS, the LPG supply situation is expected to improve by mid-year when Saudi Arabia crude production is anticipated to be back above 4.5 million barrels per day; however, the degree and extent of such improvement in the LPG supply situation cannot be predicted with certainty, and some adjustment mechanism will be necessary to adjust the exemptions herein granted to the supply situation as the same develops;
WHEREAS, the Batasang Pambansa, although in session has not been able to nor is it expected to act on the matter within the required time of emergency;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order as follows:
SECTION 1. Any provision of existing law, executive or administrative order or rule or regulation to the contrary notwithstanding, the importation of liquefied petroleum gas free from Customs duties and the Consumer Price Equalization Fund payment, by persons or entities duly authorized by the Bureau of Energy Utilization, shall be allowed for the duration of the present emergency supply situation in liquefied petroleum gas, unless sooner terminated by the President.
SEC. 2. Authority is hereby delegated to the Minister of Finance to make adjustments in the extent of the exemptions herein granted for subsequent approval of the President, upon recommendation of the Minister of Energy, as the improvement in the present emergency situation warrants. The corresponding adjustments to be made by the Minister of Finance shall be based on the degree of the alleviation oft he LPG supply situation and/or improvements in LPG spot prices in relation to the current situation.
SEC. 3. This order shall take effect immediately. lawphi1.net
Done in the City of Manila, this 15th day of March, in the year of Our Lord, nineteen hundred and eighty-three.
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