WHEREAS, under Section 2(a) of Republic Act No. 7638, otherwise known as the "Department of Energy Act of 1992" (the "Act"), it is declared the policy of the State to develop the country's indigenous energy resources taking into consideration the active participation of the private sector in the various areas of energy resouce development.

Pursuant to Sections 14 (a) and 15 (a), (b.ii) and (g), Chapter IV of Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 and in order for the Department of Energy (DOE) to monitor movements of domestic oil prices, the DOE hereby adopts the following guidelines to implement and clarify the said Memorandum Circular.

WHEREAS, Republic Act No. 7638, An Act Creating the Department of Energy declares that it shall be the policy of the State to develop the country’s indigenous energy resources taking into consideration the active participation of the private sector in the various areas of energy resource development;

Pursuant to Section 4 of Memorandum Circular No. 55 issued by the Office of the President on February 9, 2004, directing all departments, bureaus, offices, agencies and instrumentalities of the government, including government-owned and controlled corporations to incorporate the use of one percent (1%) by volume Coconut Methyl Ester in their diesel requirements, the Department of Energy, in consultation with concerned government agencies and private entities, hereby promulgates and adopts the following rules and regulations.

WHEREAS, R. A. 8479, otherwise known as the "Downstream Oil Industry Deregulation Act of 1998", applies to all persons or entities engaged in any and all activities of the domestic downstream oil industry and mandates the DOE to promote the entry of new industry participants;