Wednesday, December 6, 2017

Keynote Speech of DOE Secretary Alfonso G. Cusi at Oil Industry Management Bureau Day

Wazzup Pilipinas!

To our distinguished guests, friends from the media, DOE management and staff, Good morning!
We must all be proud of what we have attained so far as a result of strenuous discussions, exchanges and revisions. The government and private sector working together towards a common goal that is for the common good of the industries and the consumers as a whole.
The Revised Retail Rules, The Philippine Downstream Natural Gas Industry Regulation and Handbook on LPG Safety Code in Refilling Plant are a welcome development in its respective sectors. For one, we now have categories for gas stations that will serve, among others, as basis of additional facilities and services. We are also open to the various technology-options that are being introduced in the market to address the proliferation of liquid fuels in soda bottles or “bote-bote” and to cater the dynamic segment of the transport industry, the tricycles and those living in remote areas.
Furthermore, the DOE and the Downstream Oil Industry have already drafted and endorsed to the DTI BPS for issuance of the new PNS for Biodiesel blends of both Automotive and Industrial Diesel Oils to comply with the standard specification under the Philippine Clean Air Act.
These are potent measures to encourage the entry of new industry participants and to address or at least minimize the noted infractions being made by unscrupulous entities.  Need I say that we must not lose sight of our partnership, that we need to jointly monitor and for each industry stakeholder to exercise self-regulation.
So, what is the bottom line? These issuances generally put in place the requirements for ease in doing business and reiterate and identify the national standards on quality and quantity that is, for the protection of consumers’ welfare. As what we have always been advocating, safety comes first and there is no compromise on that. While the industry is deregulated, government must ensure that all stakeholders abide to the laws, rules and regulations governing the business especially, on safety.
We all know that this does not stop here. In fact, there are still a lot of things to do and we appreciate your continued support on the more urgent additional rules.
For one, the need to review and eventually update the compliance to the Biofuel requirements on Ethanol and CME blends. 
Secondly, a Joint Administrative Order (JAO) is planned to be issued on the first quarter of 2018 directing all LPG Industry participants to observe minimum safety standards in the transportation and distribution of LPG in Cylinders. It was crafted to apply to all persons involved in importing, refining, refilling, storing, transporting, marketing, distributing, hauling, retailing, selling, and/or trading of LPG in cylinders. The LPG Industry participants are enjoined to adhere to and observe strictly the guidelines and all the submissions and compliances that are prescribed and mentioned in the said JAO. In order to effectively implement the provisions in the circular, the proposed JAO is promulgated for the information, guidance and compliance of all concerned. This measure shall be made in coordination with our partner agencies such as DILG, DOTr-LTO and MMDA who are directly involved in the regulations of vehicles transporting petroleum products.
And the last but not the least, a Department Circular on the Unbundling of Oil Price Adjustment is being prepared that is seen to enhance the availability of information regarding the details of any oil price adjustment including the reasons for such. It shall also mandate the direct explanation of the adjustment by the respective oil companies and the requirement of specifying the date when the price adjustment from the biofuel shall be effected. It shall be released on the first quarter of 2018.
This sums up what we have accomplished to date and what we need to finish in the early part of 2018. 
As we endeavor to put order in these industries, we again call on you to join us in pursuing and championing it.
Thank you and Good Morning!

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