TAGUIG CITY – The Department of Energy has issued a circular meant to ensure consistent and effective monitoring of the activities of downstream oil industry (DOI) participants in the country.

DOE issued Department Circular (DC) No. DC2021-09-0029 or the “Guidelines on Notices and Reportorial Requirements Pursuant to the Downstream Oil Industry Deregulation Act” after conducting several virtual public consultations with the DOI sector.

“This circular strengthens the Department’s mandate to continuously monitor the compliance of the downstream oil industry participants in the implementation of the existing rules and regulations requiring the submission of necessary notices and reportorial requirements pursuant to Downstream Oil Industry Deregulation Act,” Energy Secretary Alfonso G. Cusi said.

The circular applies to all refiners, importers, bulk distributors, terminal operators/lessors, bunker traders, haulers and own users of crude oil and finished petroleum products as well as all blenders, marketers and own users of base oils and lubricating products under the Philippine Downstream Oil Industry.

The circular provided rules on the submission of documentary requirements and reportorial templates regarding acknowledgement or registration requirements of downstream oil industry participants in compliance to the Downstream Oil Industry Deregulation Law.

It also governs the matter of required submission of notices and reports by downstream oil industry participants. 

Under the circular, DOI participants are required to regularly submit to the Oil Industry Management Bureau (OIMB) of the DOE their monthly, quarterly, and annual reports about their profile, activities and inventory flow.

DOI participants are also directed to submit Special Reports regarding maintenance shutdown, oil spill notification, weekly oil spill progress report, as well as calamity or emergency damage assessment and daily progress report on such matters.

The circular takes effect 15 days after publication in two newspapers of general circulation.

To provide a transition period, the use of new formats for notices and monthly reports will be implemented on the second month after the circular took effect, while the use of the new formats for the quarterly report will be implemented on the next quarter following the effectivity of the circular.

Failure to comply with the submission of notices or reports will cause the suspension of the acknowledgement of the offending party as DOI participant or its accreditation as a DOI Biofuel Participant.

It could also result to the cancellation or suspension of any application or request of the concerned party to the DOE in relation to its DOI operations.

Administrative fines ranging from as high as P100,000 to P50,000 may be imposed on a per violation basis, depending on the nature of the offense. Criminal charge may also be filed against the non-compliant party, separate from the imposition of such fines or the initiation of an administrative action. 

The data on such notices and reports will ultimately form part of the Downstream Oil Industry Sector Report in the Philippine Energy Plan which will be useful as reference reports to the downstream oil industry.

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