WHEREAS, under the Downstream Oil Industry Deregulation Act of 1998 (RA 8479), in relation to the Department of Energy Act of 1992 (RA 7638), the Secretary of Energy is authorized to exercise such powers concomitant with the policy of ensuring continuous, adequate and stable supply of energy, in respect of the conservation, stockpiling and storage of energy resources;

WHEREAS, Executive Order No.134 requires the Oil Companies and Bulk Suppliers to maintain a sufficient minimum inventory of petroleum, for purposes of ensuring a continuous, adequate and stable supply of Petroleum. Crude Oil and Products, in cases where domestic and international events threaten or restrict the supply of Petroleum Crude Oil and Products to the Philippines such as, but not limited to, terrorist attacks, armed conflict in the Middle East and in other regions from which the Philippines draws or transits its supply of Petroleum Crude Oil and Products, and other similar events;