Pursuant to Sections 6 and 7 of Executive Order (E.O.) No. 336 issued by the President of the Republic of the Philippines on 23 July 2004, the Department of Energy (DOE), in coordination with the Department of Finance (DOF), Bureau of Customs (BOC), Department of Trade and Industry (DTI), and the National Economic and Development Authority (NEDA), hereby adopts the following guidelines to implement the increase of tariff rates on imported crude oil and refined petroleum products.

1. Title - These guidelines shall be known as the "Implementing Guidelines for the Modification of Import Duty Rates on Crude Oil and Refined Petroleum Products' and shall be hereafter referred to as the "Guidelines".

2. Scope and Coverage - These Guidelines shall apply to all articles listed in Annex A of said E.O.

3. Determination of the Trigger Price The DOE shall deem that the trigger price has been reached if any of the following conditions have been met a) If there is a decrease in the monthly average price Of crude oil on a calendar basis by $1.00/bbl from the August 2004 average Dubai crude price; or b) If there is a decrease of $3.00/bbl in the average price of diesel, based on seven (7) trading days, from August 2004 average MOPS price.

4. Notification Process The DOE shall issue a certification to the DOF and BOG, copy furnished the DTI, NEDA and [lie oil importers, that the trigger level has been reached. 5. Effectivity These Guidelines shall take effect upon complete publication in two (2) newspapers of general circulation. Issued in Fort Bonifacio, City of Taguig this 25th day of August 2004. (Sgd.) VINCENT S. PEREZ Secretary