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This page features the full text of
Republic Act No. 7639
AN
ACT PROVIDING FOR THE PAYMENT IN PART OF THE SUBSCRIPTION OF THE
GOVERNMENT
OF THE REPUBLIC OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE NATIONAL
POWER CORPORATION OUT OF THE OIL PRICE STABILIZATION FUND, AMENDING FOR
THE PURPOSE PRESIDENTIAL DECREE NO. 1956, AS AMENDED.
REPUBLIC
ACT NO. 7639AN
ACT PROVIDING FOR THE PAYMENT IN PART OF THE SUBSCRIPTION OF THE
GOVERNMENT
OF THE REPUBLIC OF THE PHILIPPINES TO THE CAPITAL STOCK OF THE NATIONAL
POWER CORPORATION OUT OF THE OIL PRICE STABILIZATION FUND, AMENDING FOR
THE PURPOSE PRESIDENTIAL DECREE NO. 1956, AS AMENDED.
Section
1. The subscription of the Government
of the Republic of the Philippines to the capital stock of the National
Power Corporation, as provided for in Republic Act No. 6395, otherwise
known as the Revised Charter of the National Power Corporation, as
amended
by Presidential Decree Nos. 758, 1360, and 1443, shall be paid in part
out of the Oil Price Stabilization Fund in the amount of Three billion
pesos (P3,000,000,000) in accordance with Section 2 of this Act.
chanrobles virtuallaw libraryred
Sec.
2. Section 8 of Presidential
Decree No. 1956, as amended by Executive Order No. 137, is hereby
further
amended to read as follows:
"Sec.
8. There is hereby created a
Trust Account in the books of accounts of the Office of Energy Affairs
to be designated as the Oil Price Stabilization Fund (OPSF) for the
purpose
of minimizing frequent price changes brought about by exchange rate
adjustments
and/or changes in world market prices of crude oil and imported
petroleum
products. The Oil Price Stabilization
Fund (OPSF) may be sourced from any of the following:chanrobles virtuallaw libraryred"(a) Any
increase in the tax collection as a result of the lifting of tax
exemptions
of government corporations, as may be determined by the Department of
Finance
in consultation with the Energy Regulatory Board;chanrobles virtuallaw libraryred"(b) Any
additional amount to be imposed on petroleum products to augment the
resources
of the Fund through an appropriate order that may be issued by the
Energy
Regulatory Board requiring payment of persons or companies engaged in
the
business of importing, manufacturing and/or marketing petroleum
products;
"(c) Any
resulting peso cost differentials in case the actual peso costs paid by
oil companies in the importation of crude oil and petroleum products is
less than the peso costs computed using the reference foreign exchange
rate as fixed by the Energy Regulatory Board.
"The
Fund herein created shall be used for the following:chanrobles virtuallaw libraryred"(1) To
reimburse the oil companies for cost increases in crude oil and
imported
petroleum products resulting from exchange rate adjustment and/or from
the increase in world market prices of crude oil;chanrobles virtuallaw libraryred"(2) To
reimburse the oil companies for possible costof
underrecovery incurred as a result of the reduction of domestic prices
of petroleum products.The magnitude
of the underrecovery, if any, shall be determined by the Department of
Finance.Cost underrecovery shall
include the following:chanroblesvirtualawlibrary"(i) Reduction
in oil company take as directed by the Energy Regulatory Board without
the corresponding reduction in the landed cost of oil inventories in
the
possession of the oil companies at the time of the price change;chanrobles virtuallaw libraryredchanrobles virtuallaw libraryred"(ii) Reduction
in internal specific taxes as a result of the foregoing
government-mandated
price reductions; and "(3) To
cover the payment in part of the subscription of the Government of the
Republic of the Philippines to the capital stock of the National Power
Corporation in the amount of Three billion pesos (P3,000,000,000).Said
amount shall be released to the National Power Corporation upon the
effectivity
of this Act: Provided, That such amount shall be released only
if,
on the said date, the OPSF terminal balance shall not be less than
Three
billion pesos (P3,000,000,000), as certified by the Office of Energy
Affairs: Provided,
further, That the National Power Corporation shall utilize the said
payments on its capital stock to finance its capital expenditures for
energy
projects only. "The
Oil Price Stabilization Fund (OPSF) shall be administered by the Office
of Energy Affairs."
Sec.
3. All laws inconsistent with
this Act are hereby repealed or modified accordingly.chanrobles virtuallaw libraryred
chanrobles virtuallaw libraryred
Sec.
4. This Act shall take effect
upon its publication in two (2) national newspapers of general
circulation.
Approved:
December
9, 1992
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