MEDIA STATEMENT ON THE SUPREME COURT DECISION UPHOLDING THE DOWNSTREAM OIL INDUSTRY DEREGULATION ACT’S PROVISION AUTHORIZING THE TEMPORARY TAKE OVER OR DIRECTION OF OIL INDUSTRY OPERATIONS IN TIMES OF NATIONAL EMERGENCY

The Department of Energy (DOE) respects and supports the ruling of the Supreme Court upholding the constitutionality of Section 14(e) of Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 that authorizes the DOE in times of national emergency to temporarily take over or direct the operation of any person or entity engaged in the downstream oil industry. The DOE is committed to implementing Section 14(e) of the said law as the public interest may require in times of national emergency, in accordance with the Constitution and the applicable laws and consistent with the President’s intent or instructions. The DOE will study fully with the Department of Justice and the Office of the Solicitor General the clarifications made by the Supreme Court and will take such steps as may be necessary to ensure that this measure of last resort is properly exercised whenever needed. The DOE will also continue to consult and work with all stakeholders on maximizing and diversifying sources of energy supply, enhancing its distribution and availability to the public at reasonable prices, managing the prioritization of demand to avoid or minimize potential constraints, and strengthening overall capacity to bounce back from interruptions.