WHEREAS, Republic (R.A.) No. 7638 or the Department of Energy Act of 1992 mandates the Department of Energy (DOE) to formulate policies for the planning and implementation of a comprehensive program for the efficient supply and economical use of energy, establish and administer programs, among others, stockpiling and storage of energy resources with the end in view of securing energy supply;

WHEREAS, R.A. No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 declares the policy of the State to liberalize and deregulate the downstream oil industry in order to ensure a truly competitive market under a regime of fair prices, adequate and continuous supply of environmentally-clean and high quality petroleum products;