WHEREAS, Republic Act No. 7638 ("Department of Energy Act of 1992") vests upon the Department of Energy ("DOE") the power to formulate rules and regulations for the transportation and distribution of all forms of energy products;

WHEREAS, Republic Act No. 8479 ("Downstream Oil Industry Deregulation Act of 1998") requires the DOE to monitor the refining, manufacturing and marketing processes of petroleum products to ensure that clean and safe technologies are applied;

WHEREAS, there is a regional/global thrust towards harmonizing fuel quality standard specifications for easier global/international trade;

WHEREAS, Section 5 (K) of Republic Act No. 7638 otherwise known as the "Department of Energy (DOE) Act of 1992," empowers the DOE to promulgate necessary rules and regulations to implement the objectives of the Act among which is the integration and rationalization of the various programs of the Government towards self-sufficiency and enhanced productivity in power and energy without sacrificing ecological concerns;

WHEREAS, Republic Act (R.A.) No. 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998", provides for the deregulation of the downstream oil industry to foster a truly competitive market which can better achieve the social policy objectives of fair prives, adequate and continuous supply of environmentally-clean and high quality petroleum products e.g. gasoline, diesel, LPG and bunker;

WHEREAS, Section 5.1 of Republic Act No. 9367 or the “Biofuels Act of 2006” mandates that, “Within two years from the effectivity of this Act, at least five percent (5%) bioethanol shall comprise the annual total volume of gasoline fuel actually sold and distributed by each and every oil company in the country, subject to the requirement that all bioethanol blended gasoline shall contain a minimum of five percent (5%) bioethanol fuel by volume. Provided, that the ethanol blend conforms to PNS.”;