Preamble
WHEREAS, the discovery of local crude oil in the Philippines has led to its commercial production in gradually increasing quantities; WHEREAS, the domestic production of crude oil eliminates the inward ocean freight and other incidental costs, as well as customs duties, as cost components, thereby reducing the acquisition price of locally produced crude oil; WHEREAS, despite such a reduction in the buying price of crude oil by local processors and refineries, it is not yet economically feasible to reduce appreciably the selling price of petroleum products for consumption, thereby benefiting only a group of oil refinery companies; WHEREAS, it is necessary to spread the benefits arising from the discovery and production of oil in our country to a greater number of our people as far as possible; WHEREAS, taxation, which is an accepted instrument for redistribution of wealth, can be utilized to achieve the optimum distribution of the said benefits which would otherwise inure to oil refineries only; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following: