To assess a program for reform and determine an accurate tariff and price structure for the Philippines petroleum industry, the Philippine Department of Energy (DOE) and USAID contracted K&M to conduct a technical, financial and institutional reform evaluation of the domestic oil sector. K&M’s review and evaluation of the oil sector included: analysis of detailed the pricing conditions of the Philippine oil sector; identifying short and long-term objectives for the sector; evaluating the current cost and regulatory/institutional conditions of the industry; analyzing the capabilities and strength of the oil refinery industry; and presented alternative approaches to the current Philippines pricing mechanism.