AN ACT ESTABLISHING THE PETROLEUM PRICE STANDBY FUND TO SUPPORT THE OIL PRICE STABILIZATION FUND (OPSF), AND APPROPRIATING FUNDS THEREFOR

Eighth Congress

REPUBLIC ACT No. 6952             May 17, 1990

AN ACT ESTABLISHING THE PETROLEUM PRICE STANDBY FUND TO SUPPORT THE OIL PRICE STABILIZATION FUND (OPSF), AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. The Petroleum Price Standby Fund is hereby established to support the Oil Price Stabilization Fund (OPSF) to cover claims arising from transactions up to November 30, 1989 and, whenever feasible, to maintain oil prices at December 1, 1989 retail/pump price level. The Fund shall be deposited in the National Treasury and administered by the Office of the President. The administration, utilization, and disposition of the Petroleum Price Stand-by Fund herein established shall be subject to the audit jurisdiction of the Commission on Audit (COA) which shall promulgate the necessary accounting and auditing rules and regulations to carry out the provisions of this Act.

Section 2. Application of the Fund shall be subject to the following conditions:

Section 3. The amount of Five billion pesos (5,000,000,000.00) is hereby appropriated for this purpose which shall be sourced from excess revenues from ad valorem tax and/or import duty on crude oil and finished petroleum products, incremental dividends and receipts from government corporations and overall savings of the National Government. Any claims against the Fund in excess of Five billion pesos (P5,000,000,000.00) shall be sourced from the 1991 budget.

Section 4. The Department of Finance and Department of Budget and Management shall prescribe the necessary rules and regulations to implement this Act.

Section 5. The Department of Budget and Management shall, within ten (10) days after the end of each month, submit to Congress a monthly report on the releases to each oil company and outstanding balance of the Fund.

Section 6. This Act shall take effect upon its publication in at least two (2) newspapers of general circulation.

Approved: May 17, 1990