SC: DOE may take over oil industry in emergencies

The Supreme Court (SC) has ruled that the Department of Energy (DOE) may take over oil industry operations in times of emergency upon the directive of the country's president.

- DAPHNE GALVEZ

In a 37-page decision, the SC upheld the constitutionality of Section 14(e) of Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, reversing the 2013 decision issued by the Court of Appeals (CA), which declared the provision unconstitutional.

The provision states that "in times of national emergency, when the public interest so requires, the DOE may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any person or entity engaged in the industry."

"All told, Section 14(e) of Republic Act 8479 is a proper delegation of takeover power to the Department of Energy. Absent any actual proof from respondents (Pilipinas Shell) that the exercise of this provision has caused it harm or injury, we hold that the challenge claiming the provision unconstitutional must fail," the SC decision read.

"The Court of Appeals, therefore, incorrectly declared Section 14(e) of Republic Act 8479 unconstitutional," it added.