MANILA, March 5 -- The Supreme Court (SC) has affirmed the validity of a law enacted in 1998 allowing the government to take control of private entities engaged in the oil industry during emergencies, as directed by the President.

In its 37-page decision published online Tuesday, the SC reversed a 2013 Court of Appeals (CA) decision and said the Department of Energy (DOE) has this authority under Section 14 (e) of Republic Act 8479, also known as the Downstream Oil Industry Deregulation Act of 1998.

The provision empowers the DOE to temporarily oversee or direct the operations of private corporations within the oil industry under certain circumstances.

The SC pointed out the President's prerogative to determine national emergencies and...