Volume 3 - Downstream

DEPARTMENT OF ENERGYCOMPENDIUM OF ENERGY LAWSAND OTHER ISSUANCES

VOLUME 3

DOWNSTREAM

Greetings!

The Department is pleased to present this Compendium of Energy Laws and Other Issuances. Included in this publication are those covering the creation of the Department and its attached agencies, as well as the laws and IRRs in the upstream, and power industries.

We commend our Legal Services for its efforts to come up with a digest, giving us access to much needed information for energy-related endeavors. We also thank the Gender and Development (GAD) Committee for their support of this project.

This compendium will serve as a reminder of how our agency evolved through the years and serve as basis of what the agency can further achieve. This publication also shows us the changes and additions we can make to present laws and regulations to improve our policies and subsequently, the lives of our people.

As members and affiliates of this agency, we should be proud of our accomplishments and strive to always maintain our reputation as one of the most professional agencies in the government. We should remember the things we have already done so we can be guided to address our countrys energy requirements. Our task today is to come up with new, if not better guidelines for generations ahead.

Let us make this publication a useful guide in fulfilling our duties as public servants and productive members of the Energy Department and its attached agencies.

JOSE RENE D. ALMENDRAS

FOREWORDby the SecretaryFOREWORDby the Secretary

An important commitment of the Department of Energy involves the mainstreaming of Gender and Development (GAD) in its policies, plans, and programs to ensure increased participation of women not only in the energy sectors activities but in the decision-making as well.

A valuable tool in achieving this goal comes in the form of a comprehensive compilation designed to provide energy laws and regulations which date as far back as 1971, that help shape todays vibrant energy industry. This is a venue to look into the energy laws and circulars and come to a determination if women are indeed empowered and given such opportunities.

We, therefore, laud the significant efforts of the DOE Legal Service for embarking on the publication of four volumes of the Compendium of Energy Laws and Circulars as a project of the DOE GAD Focal Point. This Compendium serves as a useful reference for energy stakeholders and professionals, researchers, students, and for all those who share our vision of expanding energy services for women in order that they may equally participate in the countrys economic development and also enjoy the benefits of energy towards better quality of life.

Mabuhay!

LORETA G. AYSON, CESO I

PREFACEby the UnderSecretary

i. FOREWORD BY THE SECRETARYii. PREFACE BY THE UNDERSECRETARY LORETA G. AYSON

VOLUME III. DOWNSTREAM

CHAPTER I

BATAS PAMBANSA BLG. 33 1

AN ACT DEFINING AND PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO THE PUBLIC INTEREST AND NATIONAL SECURITY INVOLVING PETROLEUM AND/OR PETROLEUM PRODUCTS, PRESCRIBING PENALTIES THEREFOR AND FOR OTHER PURPOSES

PRESIDENTIAL DECREE NO. 1865 3

AMENDING BATAS PAMBANSA BLG. 33, ENTITLED AN ACT DEFINING AND PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO THE PUBLIC INTERESTS AND NATIONAL SECURITY INVOLVING PETROLEUM AND/OR PETROLEUM PRODUCTS, PRESCRIBING PENALTIES THEREFOR AND FOR OTHER PURPOSES, BY INCLUDING SHORTSELLING AND ADULTERATION OF PETROLEUM AND PETROLEUM PRODUCTS AND OTHER ACTS IN THE DEFINITION OF PROHIBITED ACTS, INCREASING THE PENALTIES THEREIN, AND FOR OTHER PURPOSES

IRR OF BATAS PAMBANSA BLG. 33, AS AMENDED BY 7 PRESIDENTIAL DECREE NO. 1865

BEUMEMORANDUMCIRCULARNO.85-3-348 16

AMENDMENT TO RULE IV, SECTION 2a (UNDERFILLING OF LPG CYLINDER) OF THE RULES AND REGULATIONS ON THE IMPLEMENTATION OF BATAS PAMBANSA BLG. 33, AS AMENDED BY PRESIDENTIAL DECREE NO. 1865 ISSUED ON MAY 25, 1983

EIABMEMORANDUMCIRCULARNO.95-03-001 16

[SUBJECT: A. INSTALLATION OF CYLINDER VALVE PROTECTIVE CAP OR COVER AND CYLINDER HEAD COLLAR ON 50 KG LPG CYLINDERS; B. PROHIBITION ON THE SALE AND DELIVERY OF LPG WHICH HAVE NO BRAND NAMES (UNBRANDED)]

DEPARTMENTCIRCULARNO.2000-05-007 18

EMBOSSED IDENTIFYING MARK ON LPG CYLINDERS AND INSTALLATION OF COLLARS WITH DISTINCTIVE DESIGN OR MARKINGS ON EXISTING LPG CYLINDERS DURING REQUALIFICATION


o The Honorable Secretary Vincent S. Perez in his capacity as the Secretary of DOE vs. LPG Refillers Association of the Philippines (GR No. 159149, June 26, 2006)


PROHIBITION ON THE REFILLING OF LPG CYLINDERS COVERED BY THE RECALL AND REPLACEMENT ORDER OR THE DEPARTMENT OF TRADE AND INDUSTRY (DTI) BUREAU OF PRODUCT STANDARDS (BPS), AND THE SALE OF SUBJECT CYLINDERS, WHETHER REFILLED OR NOT.

TABLE OF CONTENTS

24


o NBI Supervising Agent E. Marvin De Jemil, et al. vs. Hon. Raul M. Gonzalez, et. al. (CA-GR SP No. 98054, September 24, 2007)

CHAPTER II

A. REPUBLICACTNO.8479 47

AN ACT DEREGULATING THE DOWNSTREAM OIL INDUSTRY AND FOR OTHER PURPOSES

CASES

o Ernesto Maceda vs. ERB, et. al. ( G.R. No. 96266, July 18, 1991) 58o ERB vs. Court of Appeals, et. al. ( G.R. No. 113079, April 20, 2001) 67o Petron Corporation vs. Mayor Tobias M. Tiangco, et. al. (G.R. No. 158881, April 16, 2008) 79o Congressman Enrique T. Garcia of the 2nd District of Bataan vs. The Executive Secretary, et. al. ( G.R. No.157584, April 2, 2009) 89o Francisco M. Tatad vs. The Secretary of the Department of Energy, et. al.

(G.R. No. 124360, November 5, 1997)

EXECUTIVE ORDER NO. 377 118

PROVIDING THE INSTITUTIONAL FRAMEWORK FOR THE ADMINISTRATION OF THE DEREGULATED DOWNSTREAM OIL INDUSTRY

MEMORANDUM OF UNDERSTANDING BETWEEN THE DEPARTMENT OFENERGY (DOE) AND THE DEPARTMENT OF TRADE AND INDUSTRY (DTI), DATED JANUARY 18, 2001

EIABMEMORANDUMCIRCULARNO.97-04-003 125

DIRECTING ALL OIL COMPANIES, ALL LPG INDEPENDENT MARKETERS AND DEALERS, ALL CONCERNED TO SUBMT LPG PRICE LIST

DOE-DOJTASKFORCERESOLUTIONNO.98-01 126

RULES AND REGULATIONS OF THE DOE-DOJ TASK FORCE

DOE-DOJTASKFORCERESOLUTIONNO.2008-01 128

AMENDING RESOLUTION NO. 98-01, OTHERWISE KNOWN AS RULES AND REGULATIONS OF THE DOE-DOJ TASK FORCE


AMENDING DEPARTMENT CIRCULAR NO. 95-10-008, DIRECTING ALL OPERATORS OF OIL RIGS OR PLATFORMS, POWERPLANTS, OIL TANKERS AND BARGES CARRYING, PRODUCING AND/OR UTILIZING CRUDE OIL-BASED PRODUCTS TO REPORT ALL OIL SPILLS OR ENVIRONMENTAL INCIDENTS TO THE DEPARTMENT OF ENERGY


RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 8479, DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998


AMENDING SECTION 14 OF DEPARTMENT CIRCULAR NO. 98-03-004 ENTITLED RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT 8479, DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998

34

99

122


FURTHER AMENDING SECTION 14 OF DEPARTMENT CIRCULAR NO. 98-03-004 ENTITLED RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT 8479, DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998, AS AMENDED


SUPPLEMENTING RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT 8479, DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998, PARTICULARLY SECTION 15 THEREOF

MEMORANDUMCIRCLUARNO.2001-05-002 164

PRIOR NOTICE ON PRICE ADJUSTMENTS


GUIDELINES IMPLEMENTING THE REQUIREMENT OF A PRIOR NOTICE ON PRICE ADJUSTMENTS PURSUANT TO MEMORANDUM CIRCULAR NO. 2001-05-002


PROVIDING FOR THE RULES AND REGULATIONS GOVERNING THE BUSINESS OF RETAILING LIQUID PETROLEUM PRODUCTS

MEMORANDUMCIRCULARNO.2001-02-001 176

PROPER RETENTION OF PETROLEUM SAMPLES IN RETAIL OUTLETS


OCTANE POSTING AT THE PUMP


REQUIRING DEALERS AND/OF OPERATORS OF GASOLINE STATIONS TO POST A WARNING SIGN AGAINST THE USE AND/OR OPERATION OF CELLULAR PHONES WHILE GASSING-UP IN GASOLINE STATIONS


IMPLEMENTING THE PHILIPPINE NATIONAL STANDARD SPECIFICATION FOR BUNKER FUEL OILS (PNS/DOE QS 006:2005)

SUMMARYOFDEPARTMENTOFENERGY/PHILIPPINENATIONAL STANDARDS(DOE/PNS)FUELQUALITYSTANDARDSDEVELOPMENT 181

CHARTONPROCESSINGOFCERTIFICATEOFCOMPLIANCE(COC) 184

DEPARTMENTORDERNO.2003-10-014 185

CREATING A DOE GASOLINE STATION LOAN REVIEW COMMITTEE AND DEFINING THE FUNCTIONS THEREOF AND THOSE OF THE DOE BUREAU/UNITS INVOLVED


PROVIDING FOR THE RULES AND REGULATIONS GOVERNING THE BUSINESS OF SUPPLYING, HAULING, STORAGE, HANDLING, MARKETING AND DISTRIBUTION OF LIQUIFIED PETROLEUM GAS (LPG) FOR AUTOMOTIVEUSE.

CHARTS

CHART ON PROCESSING OF STANDARDS COMPLIANCE CERTIFICATE (SCC) & CERTIFICATE OF NON-COMPLIANCE (CNC) 198

CHART ON ACKNOWLEDGEMENT OF NOTICES

CHARTONPROCESSINGOFAPPLICATIONFORDOEENDORSEMENT FOR BOI-REGISTRATION OF PROJECTS UNDER RA NO. 8479

CHART ON PROCESSING OF APPLICATION FOR DOE ENDORSEMENT TOAVAIL OF INCENTIVES FOR BOI-REGISTERED PROJECTS UNDER RA NO. 8479

CHART ON ISSUANCE OF CERTIFICATE OF COMPLIANCE FOR NOTICE OFIMPORTATION/EXPORTATION OF CRUDE OIL, FINISHED PETROLEUM PRODUCTS, LUBES AND SPECIALTY PRODUCTS

CHARTONREGISTRATIONOFFUELADDITIVES

CHART ON PROCESSING OF REGISTRATION OF FUEL ADDITIVES WITHINTERIM STATUS PERMIT (ISP)

CHART ON GASOLINE STATION LENDING AND FINANCIAL ASSISTANCEPROGRAM

CHARTONCONDUCTOFCOMPLAINTRELATEDINSPECTIONSFOR ALL PETROLEUM PRODUCTS OF RETAIL OUTLETS (LPGANDGASOLINESTATIONS)

CHAPTER III

EXECUTIVEORDERNO.134 207

REQUIRING OIL COMPANIES AND BULK SUPPLIERS TO MAINTAIN A SUFFICIENT MINIMUM INVENTORY OF PETROLEUM, FOR PURPOSES OF ENSURING CONTINUITY, ADEQUACY AND STABILITY OF CRUDE AND FUEL SUPPLY


GUIDELINES IMPLEMENTING THE MINIMUM INVENTORY REQUIREMENTS OF OIL COMPANIES AND BULK SUPPLIERS AS PROVIDED UNDER EXECUTIVE ORDER NO. 134


PROVIDING FOR THE RELAXATION OF THE MINIMUM INVENTORY REQUIREMENTS OF ALL OIL COMPANIES AND BULK SUPPLIERS OPERATING IN THE COUNTRY

CHAPTER IV

REPUBLICACTNO.9367 215

AN ACT TO DIRECT THE USE OF BIOFUELS, ESTABLISHING FOR THIS PURPOSE THE BIOFUEL PROGRAM, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES


INTERIM GUIDELINES FOR THE ACCREDITATION OF OIL INDUSTRY PARTICIPANTS IN THE BIOETHANOL PROGRAM

CHART ON PROCESSING OF APPLICATION FOR ACCREDITATION OF A BIOFUEL MANUFACTURER


IMPLEMENTING THE PHILIPPINE NATIONAL STANDARD SPECIFICATION FOR ANHYDROUS BIOETHANOL FUEL (PNS/DOE QS 007:2005)


RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9367

199

228

200

201

202

203

204

205

206

JOINTADMINISTRATIVEORDERNO.2008-1,SERIESOF2008 247

GUIDELINES GOVERNING THE BIOFUEL FEEDSTOCKS PRODUCTION, DISTRIBUTION AND SALE UNDER REPUBLIC ACT NO. 9367


IMPLEMENTING THE PHILIPPINE NATIONAL STANDARD SPECIFICATION FOR BIODIESEL AND BIOFUEL BLENDS PURSUANT TO REPUBLIC ACT NO. 9367, OTHERWISE KNOWN AS THE BIOFUELS ACT OF 2006


MANDATING A MINIMUM OF 2% BLEND OF BIODIESEL IN ALL DIESEL AND 5% BIOETHANOL IN ANNUAL TOTAL VOLUME OF GASOLINE

CHAPTER V

OFFICEOFTHEPRESIDENTMEMORANDUMCIRCULARNO.55 269

DIRECTING ALL DEPARTMENTS, BUREAUS, OFFICES AND INSTRUMENTALITIES OF THE GOVERNMENT, INCLUDING GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS, TO INCORPORATE THE USE OF ONE PERCENT (1%) BY VOLUME COCONUT METHYL ESTER IN THEIR DIESEL REQUIREMENTS

DOEDEPARTMENTCIRCULARNO.2004-04-003 270RULES AND REGULATIONS IMPLEMENTING MEMORANDUM CIRCULAR NO. 55

DOEDEPARTMENTCIRCULARNO.2005-04-003 275PROMOTING THE USE OF COCO-BIODIESEL AS AN ALTERNATIVE CLEAN FUEL

SUPREMECOURTMEMORANDUMCIRCULARNO.07-2004 276IN RE: USE OF COCONUT METHYL ESTER (CME) IN THE DIESEL REQUIREMENTS OF THE COURTS

OFFICEOFTHEPRESIDENTMEMORANDUMCIRCULARNO.184 277

DIRECTING ALL DEPARTMENTS, BUREAUS, OFFICES AND INSTRUMENTALITIES OF THE GOVERNMENT, INCLUDING GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS, TO USE TEN PERCENT (10%) BY VOLUME BIOETHANOL IN THEIR GASOLINE REQUIREMENTS

CHAPTER VI

ADMINISTRATIVEORDERNO.228 279

ADDRESSING THE RISING COST OF ENERGY

CHAPTER VII


PHILIPPINE CLEAN AIR ACT OF 1999


MANDATING THE PHASE-OUT OF LEADED GASOLINE AS ONE OF THE MEANS OF SOLVING AIR POLLUTION

DENRADMINISTRATIVEORDERNO.47,SERIESOF1998 305

IMPLEMENTING RULES AND REGULATIONS FOR MANDATING THE PHASE-OUT OF LEADED GASOLINE AS ONE OF THE MEANS OF SOLVING AIR POLLUTION

DENRADMINISTRATIVEORDERNO.81,SERIESOF2000 309

IMPLEMENTING RULES AND REGULATIONS FOR RA 8749

DOEMEMORANDUMCIRCULARNO.2002-12-001 382

IMPLEMENTING THE CLEAN AIR ACT GASOLINE SPECIFICATION FOR 2003


IMPLEMENTING THE PHILIPPINE NATIONAL STANDARD SPECIFICATION FOR UNLEADED MOTOR GASOLINE [PNS/DOE QS 001:2009]

CHAPTER VIII


AN ACT ESTABLISHING A COMPREHENSIVE FIRE CODE OF THE PHILIPPINES, REPEALING PRESIDENTIAL DECREE NO. 1185 AND FOR OTHER PURPOSES

CHAPTER IX

PRESIDENTIALDECREENO.87 399

AMENDING PRESIDENTIAL DECREE NO. 8 ISSUED ON OCTOBER 2, 1972, AND PROMULGATING AN AMENDED ACT TO PROMOTE THE DISCOVERY AND PRODUCTION OF INDIGENOUS PETROLEUM AND APPROPRIATE FUNDS THEREFOR


DESIGNATING THE DEPARTMENT OF ENERGY AS THE LEAD AGENCY IN DEVELOPING THE PHILIPPINE NATURAL GAS INDUSTRY


POLICY GUIDELINES ON THE OVERALL DEVELOPMENT AND UTILIZATION OF NATURAL GAS


INTERIM RULES REGULATIONS GOVERNING THE TRANSMISSION, DISTRIBUTION AND SUPPLY OF NATURAL GAS


IMPLEMENTING THE NATURAL GAS VEHICLE PROGRAM FOR PUBLIC TRANSPORT

DEPARTMENTORDERNO.2004-02-001 443

CREATING A NATURAL GAS VEHICLE-TECHNICAL WORKING GROUP FOR COMPRESSED NATURAL GAS (CNG) VEHICLES


GUIDELINES ON THE ISSUANCE OF CERTIFICATE OF ACCREDITATION AND CERTIFICATE OF AUTHORITY TO IMPORT UNDER THE NATURAL GAS VEHICLE PROGRAM FOR PUBLIC TRANSPORT AS THE IMPLEMENTING RULES AND REGULATIONS OF EXECUTIVE ORDER NOS. 396 AND 488 DATED DECEMBER 31, 2004 AND JANUARY 12, 2006, RESPECTIVELY AND DEPARTMENT CIRCULAR NO. 2005-07-006 DATED JULY 5, 2005 AND AMENDING CERTAIN PROVISIONS OF THE SAID D.C. NO. 2004-04-004

CHAPTER X


RULES OF PRACTICE AND PROCEDURE BEFORE THE DEPARTMENT OF ENERGY

CHAPTER XI


AN ACT PRESCRIBING THE INTELLECTUAL PROPERTY CODE AND ESTABLISHING THE INTELLECTUAL PROPERTY OFFICE, PROVIDING FOR ITS POWERS AND FUNCTIONS, AND FOR OTHER PURPOSES.

VOLUME 3 DOWNSTREAM 1

SECTION 1. Declaration of Policy. It is the declared policy of the State to institutionalize as a national way of life energy conservation geared towards the judicious and efficient use of energy in order to enhance availability of energy supplies required to support economic, social and developmental goals. In view of the continuing uncertainty of the international oil supply, it is imperative that measures to conserve energy be strengthened and/or petroleum products contrary to the intent and spirit of judicious usage and conservation of energy, which are inimical to the public interest and national security, be prohibited and appropriate sanction therefor be imposed. SECTION 2. Prohibited Acts. The following acts are prohibited and penalized: (a) Illegal trading in petroleum and/or

petroleum products; (b) Hoarding of petroleum and/or petroleum

products; (c) Overpricing in the sale of petroleum and/

or petroleum products; (d) Misuse of petroleum allocations;

(e) Speed contests and rallies involving mainly the use of motor vehicles, motor-driven watercraft or aircraft utilizing petroleum-derived fuels, including car and motorcycle rallies and drag racing; and

(f) Sky-diving and water-skiing.

SECTION 3. Definition of terms. For the purposes of this Act, the following terms shall be understood to mean: Illegal trading in petroleum and/or petroleum products the sale or distribution of petroleum products for profit without license or authority from the Government; non-issuance of receipts by licensed traders; misrepresentation as to quality and/or quantity; and sale by oil companies, distributors and/or dealers violative of government rules and regulations. Hoarding the undue accumulation by a trader of petroleum and/or petroleum products beyond his or its normal inventory levels and/or the unjustified refusal to dispose of, sell or distribute the same to consumers; or the unreasonable accumulation by a person other than a trader of petroleum and/or petroleum products.

BATAS PAMBANSA BILANG 33

AN ACT DEFINING AND PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO THE PUBLIC INTEREST AND NATIONAL SECURITY INVOLVING PETROLEUM AND/OR PETROLEUM PRODUCTS, PRESCRIBING PENALTIES THEREFOR AND FOR OTHER PURPOSES

Chapter 1

2 DOWNSTREAM VOLUME 3

Overpricing the sale of petroleum and/or petroleum products at prices in excess of those duly authorized by the Government. Misuse of allocation the sale, transfer or diversion of mandated petroleum fuel allocations by oil companies, distributors, dealers of consumers contrary to the declared intent of the Government in making such allocation. SEC. 4.Penalties. Any person who commits any act herein prohibited shall, upon conviction, be punished with a fine of not less than Two Thousand Pesos (P 2,000) but not more than Ten Thousand Pesos (P 10,000), or imprisonment of at least two (2) months but not more than one (1) year, or both, in the discretion of the court. Furthermore, the petroleum and/or petroleum products, subject-matter of the illegal trading, hoarding, overpricing and misuse, shall be forfeited in favor of the Government: Provided, That if the petroleum and/or petroleum products have already been delivered and paid, the payment made shall be the subject of the forfeiture, and if the seller who has not yet delivered has been fully paid, the price received shall be returned to the buyer, and in addition, if the offender is a trader, the

cancellation of his license. Trials of cases arising under this Act shall be terminated within thirty (30) days after arraignment. When the offender is a corporation, partnership, or other juridical person, the president, general manager, managing partner, or such other officer charged with the management of the business affairs thereof shall be criminally liable. If the offender is a government official or employee, he shall perpetually be disqualified from office. SEC. 5.Repealing Clause. All laws, decrees, orders, instructions, rules and regulations which are inconsistent with, or contrary to, the provisions of this Act are hereby repealed or modified accordingly. SEC. 6.Effectivity. Upon its approval, this Act shall take effect after five days from its publication in at least two newspapers of general circulation.

Approved, June 6, 1979


PRESIDENTIAL DECREE NO. 1865

AMENDING BATAS PAMBANSA BILANG 33, ENTITLED AN ACT DEFINING AND PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO THE PUBLIC INTERESTS AND NATIONAL SECURITY INVOLVING PETROLEUM AND/OR PETROLEUM PRODUCTS, PRESCRIBING PENALTIES THEREFOR AND FOR OTHER PURPOSES, BY INCLUDING SHORTSELLING AND ADULTERATION OF PETROLEUM AND PETROLEUM PRODUCTS AND OTHER ACTS IN THE DEFINITION OF PROHIBITED ACTS, INCREASING THE PENALTIES THEREIN, AND FOR OTHER PURPOSES.

WHEREAS, Batas Pambansa Bilang 33, defines and penalizes certain prohibited acts inimical to the public interest and national security involving petroleum and/or petroleum products; WHEREAS, adulteration of finished petroleum products or possession of adulterated finished petroleum products for the purpose of sale, distribution, transportation, exchange or barter; and underdelivery or underfilling beyond authorized limits in the sale of petroleum products or liquefied petroleum gas cylinders are pernicious practices that are rampant and widespread; WHEREAS, there is an urgent need to curb, if not totally eliminate, such nefarious practices in the industry in order to better protect the consuming public; WHEREAS, it is necessary to provide the implementing government agencies with increased administrative and criminal penalties with which it can effectively curtail petroleum product adulteration and shortselling as well as other prohibited acts and activities involving petroleum and/or petroleum products which are inimical to public interest and national security;

WHEREAS, in view of the foregoing considerations, it has become necessary to amend certain provisions of Batas PambansaBilang 33, as well as to provide new provisions in the law;

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 as follows: SECTION 1. Section two of Batas Pambansa Bilang 33, as amended, is further amended to read as follows:

SEC. 2. Prohibited Acts. The following acts are prohibited and penalized: (a) Illegal trading in petroleum and/or petroleum products : (b) Adulteration of finished petroleum products, or possession of adulterated finished petroleum products for the purpose of sale, distribution, transportation, exchange or barter; (c) Under delivery or underfilling beyond authorized limits in the sale of petroleum products or possession of underfilled liquefied petroleum gas cylinder for the purpose of sale, distribution, transportation, exchange or barter; The oil company, petroleum refiller, marketer, dealer and retailer, as the case may be, and the hauler shall be responsible for the quantity and quality of the petroleum products delivered when the same is sold on


delivered basis. For the purpose of this subparagraph, the existence of the facts hereunder shall give rise to the following presumptions:

(1) That cylinders containing less than the required quantity of liquefied petroleum gas which are not properly identified, tagged and set apart and removed or taken out from the display are and made accessible to the public by marketers, dealers, sub-dealers or retail outlets are presumed to be for sale; (2) In the case of a dispensing pump in a petroleum product retail outlet selling such products to the public, the absence of an out-of-order sign, or padlock, attached or affixed to the pump to prevent delivery of petroleum products therefrom shall constitute a presumption of the actual use of the pump in the sale or delivery of such petroleum products; and (3) Where the seal, whether official or of the oil company, affixed to the dispensing pump, tank truck or liquefied petroleum gas cylinder, is broken, or is absent or removed, it shall give rise to the presumption that the dispensing pump is under delivering, or that the liquefied petroleum gas cylinder is underfilled, or that the tank truck contains adulterated finished petroleum products or is underfilled; The use of such pumps, cylinders or containers referred to in sub-paragraph (1), (2), and (3) of this sub-paragraph, to deliver products for sale or distribution shall constitute prima facie evidence of intent of the hauler, marketer, refiller, dealer, retailer outlet operator to defraud;

[(b)] (D) Hoarding of petroleum and/or petroleum products; [(c)] (E) Overpricing in the sale of petroleum products;

[(d)] (F) Misuse of petroleum allocations; [(e) (G) Speed contests and rallies involving mainly the use of motor vehicles, motor-driven watercraft or aircraft utilizing petroleum-derived fuels, including car and motorcycle rallies and drag racing, without the permit from the bureau of energy utilization; and

[(f)] (H) Sky-diving, and water skiing except when methanol is used for the power- boat operation.

SEC. 2. Section three of the same Act is hereby amended to read as follows:

SEC. 3. Definition of Terms. For the purpose of this Act, the following terms shall be construed to mean: Illegal trading in petroleum and/or petroleum products (a) the sale or distribution of petroleum products [for profit] without license or authority from the [Government] Bureau of Energy Utilization; (b) non-issuance of receipts by licensed [traders] oil companies, marketers, distributors, dealers, sub-dealers and other retail outlets, to final consumers; provided: that such receipts, in the case of gas cylinders, shall indicate therein the brand name, tare weight, gross weight, and the price thereof; (c) Refilling of liquefied petroleum gas cylinders without authority from


said bureau, or refilling of another companys or firms cylinders without such companys or firms written authorization; (D) Making or using in such cylinders a tare weight other than the actual or true tare weight thereof;

(E) Violation of rules and regulations of said bureau regarding the implementation of this Act; (F) Removal or unloading of petroleum products from any lorry, tank truck or delivery vehicle by any person other than the contracted purchaser, or in premises of the purchasers retail outlet or business establishment; (G) Use of a pump metering unit which has not been properly calibrated and sealed by the office of the city or municipal treasurer where the station or outlet is located, or by the National Science and Technology Authority (NSTA), or by any other government agency authorized therefor, or in the absence thereof by the oil company; and (H) Use of a tank truck, lorry, hauling vehicle, or other conveyor other than vessels or barges for the delivery of petroleum products which has not been registered with the Bureau of Energy Utilization and the tanks, containers, or compartment thereof are not properly calibrated and sealed by the national science and technology authority or any other government agency authorized therefor [misrepresentation as to the quality and/or quantity; and sale by oil companies, distributors and/or dealers violative of government rules and regulations].

Petroleum fuel product adulteration the mixing of any petroleum product with another finished or unfinished petroleum product or stock or with any non-petroleum substance or material that will result in product quality change, or resulting in the failure of such finished petroleum product to meet the required product specifications as prescribed by the products standards agency of the Ministry of Trade and Industry, for the purpose of this definition, finished petroleum products refers to any of the following: Premium gasoline, regular gasoline, aviation gasoline, aviation turbo fuel, kerosene, diesel fuel, industrial fuel or packaged lube oils. This definition shall not apply to alcogas mixture and oil emulsions. Underfilling or underdelivery Refers to a sale, transfer, delivery or filling of petroleum products of a quantity that is actually beyond authorized limits than the quantity indicated or registered on the metering device of container. This refers, among others, to the quantity of petroleum products delivered by metered dispensing pumps in petroleum retail outlets or to liquefied petroleum gas in cylinder or to lube oils in packages. Hoarding the undue accumulation of a trader of petroleum and/or petroleum products beyond his or its normal inventory levels, and/or unjustified refusal to dispose of, sell or distribute the same to consumers; or the unreasonable accumulation by a person other than a trader of petroleum and/or petroleum products. Overpricing the sale of petroleum and/or petroleum products at prices in excess of those duly authorized by


the [Government] Board of Energy. Misuse of allocation the sale, transfer or diversion of mandated petroleum fuel allocation by oil companies, distributors, dealers or consumers contrary to the declared intent of the Government in making such allocation.

SEC. 3. The same Act is further amended by inserting between Sections three and four thereof, a new Section which shall read as follows:

SEC. 3-A. Rules and Regulations; Administrative Sanctions for violation thereof. The Bureau of Energy Utilization shall issue such rules and regulations as are necessary to carry into effect the provisions of this act, subject to the approval of the Minister of Energy, after consultation with the affected industry sectors. Said rules and regulations shall take effect fifteen (15) days from the date of its publication in two (2) newspapers of general circulation. The Bureau of Energy Utilization is empowered to impose in an administrative proceeding, after due notice and hearing, upon any person who violates any provision of such rules and regulations, a fine of not more than ten thousand pesos (P 10,000.00) or to suspend or remove the license or permit of a hauler, marketer, refiller, dealer, sub-dealer or retail outlet: Provided, that hearing in any administrative proceedings may be waived by respondent: Provided, further, that during the pendency of such administrative proceeding, the bureau may suspend the business operations of such hauler, marketer, refiller, dealer, sub-dealer or retailer or retail outlet operator when the suspension is consistent with the public interest.

Administrative proceedings shall be decided within thirty (30) days after filing of the last responsive pleading by the respondent, or termination and completion of the administrative proceeding. All law enforcement and other concerned agencies of the government shall assist the Bureau of Energy Utilization in the implementation of this section. The administrative sanction that may be imposed shall be without prejudice to the filing of a criminal action as the case may warrant.

SEC. 4. Section four of the same Act is amended to read as follows:

SEC. 4. Penalties Any person who commits any act herein prohibited shall, upon conviction, be punished with a fine of not less than (two) TWENTY thousand pesos (P2,000.00) (P20,000.00) but not more than (ten) FIFTY thousand pesos (P10,000.00) (P50,000.00), or imprisonment of at least two (2) [months] YEARS but not more than [one (1)] FIVE (5) years, or both, in the discretion of the court. In cases of second and subsequent conviction under this act, the penalty shall be both fine and imprisonment as provided herein. Furthermore, the petroleum and/or petroleum products subject imprisonment as provided herein. Furthermore, the petroleum and/or petroleum products subject matter of the illegal trading, adulteration, shortselling, hoarding, overpricing [and] OR misuse, shall be forfeited in favor of the Government: Provided, That if the petroleum and/or petroleum products have already been delivered and paid for, the offended party [the payment made] shall be indemnified twice the amount paid


RULES AND REGULATIONS ON THE IMPLEMENTATION OF BATAS PAMBANSA BLG. 33,

AS AMENDED BY PRESIDENTIAL DECREE NO. 1865, ISSUED ON MAY 25, 1983

RULE I GENERAL PROVISIONS

SECTION 1. Coverage. These rules and regulations shall apply in the implementation of Batas PambansaBilang 33, as amended by Presidential Decree No. 1865 issued on May 25, 1983. SEC. 2. Definition of Terms. For the purposes of these rules and regulations:

(1) Bureau shall mean the Bureau of Energy Utilization.

(2) Ministry shall mean the Ministry of

Energy. (3) Board shall mean the Board of Energy. (4) Act shall refer to Batas PambansaBlg.

33, as amended by Presidential Decree No. 1865, issued on May 25, 1983.

(5) An Oil Company is one that

manufactures, processes and sells a broad range of petroleum products.

[the subject of forfeiture] and if the seller who has not yet delivered has been fully paid, the price received shall be returned to the buyer with an additional amount equivalent to such price; and in addition, if the offender is [a trader] an oil company, marketer, distributor, refiller, dealer, sub-dealer and other retail outlets, or hauler, the cancellation of his license. Trials of cases arising under this Act shall be terminated within the thirty (30) days after arraignment. When the offender is a corporation, partnership, or other juridical person, the president, general manager, managing partner, or such other officer charged with the management of the business affairs thereof, or employee responsible for the violation, shall be criminally liable, in case the offender is an alien,

he shall be subject to deportation after serving the sentence.

If the offender is a government official or employee, he shall be perpetually disqualified from office.

SEC. 5. All laws, decrees, orders, instructions, rules and regulations which are inconsistent with, or contrary to, the provisions of this Act are hereby repealed or modified accordingly. SEC. 6. This decree shall take effect upon its approval. Done in the City of Manila, this 25th day of May in the year of Our Lord, nineteen hundred and eighty-three.

(sgd) FERDINAND E. MARCOS President, Republic of the Philippines

By the President:

(sgd.) JUAN C. TUVERA Presidential Executive Assistant


It shall refer to any of the following companies and such other companies that may be organized for this purpose or business: (i) Caltex Philippines, Inc.(ii) Mobil Oil Philippines, Inc.(iii) Petrophil Corporation(iv) Pilipinas Shell Petroleum Corporation

(6) A Marketer is one that is engaged in the sale or trading of petroleum products including LPG. A marketer may or may not manufacture or process the products sold. A marketer is differentiated from an oil company in that marketers include companies dealing in one product only, such as LPG. An oil company is also a marketer.

(7) A Dealer refers to one involved in the

sale or trading of petroleum products under contract with an oil company or marketer. The dealer shall sell only the products of the marketer.

(8) A Retail Outlet refers to one who

sells petroleum products directly to a consumer.

(9) A Hauler is one engaged in the

transportation of petroleum products as a business.

(10) NSTA shall refer to the National Science

and Technology Authority. (11) PSA shall refer to the Products

Standards Agency.

RULE IIILLEGAL TRADING

Non-compliance with or violation of the following provisions of this rule shall constitute ILLEGAL TRADING and shall be punishable under the Act.

SECTION 1. Bureau of Energy Utilization Licensing. No person or entity may produce, sell, transport, process, or manufacture, blend or package petroleum products for business or profit without prior registration and license from the Bureau of Energy Utilization. The registration and licensing requirements are/shall be specified in BEU administrative rules and regulations in this regard.

Annual license renewal is required. SEC. 2. Issuance of Receipts. All transactions involving the sale or transfer of petroleum products to final consumers or end-users must be covered by an official receipt bearing the registered name and address of the seller and detailing the quantity, price and type or petroleum product sold and the date of the transaction. In the case of the sale of LPG in cylinders, the receipt shall also indicate the brand of the product, the gross weight of the cylinder including its contents, the tare weight of the cylinder, excluding the contents, the net weight of the LPG contained, the total price and the unit price per cylinder. SEC. 3. Refilling of LPG Cylinders. Refilling of LPG cylinders for purposes of sale or distribution for business or profit must have prior registration and license from the Bureau as provided for in BEU rules and regulations in this regard. Refilling of LPG cylinders not owned by the refilling entity may be performed only with the written authorization of the cylinder owner or the entity that has entitlement to such cylinders. SEC. 4. Marking of LPG Cylinder. Within ninety (90) days of the effectivity of these Rules and Regulations, all LPG cylinders must be properly marked with the weight of the cylinder either engraved or embossed. The weight shall be expressed in kilograms


and shall be indicated to the last one-tenth (0.1) of one kilogram. The marking must be in a conspicuous spot in the cylinder and shall not be less than 0.6 cm in height. All LPG cylinders must also have the owners trade name, a distinguishing color and distinctive serial number marked on every cylinder.

SEC. 5. Unloading of Petroleum Products. Petroleum products may be unloaded only by/or in the presence of the buyer, or his authorized representative, as named on the sales invoice. Moreover, unloading of the product may be performed only at the premises designated by the buyer and indicated on the sales invoice. For this purpose, the supplier must indicate on the sales invoice the name of the buyer and eh delivery point of every shipment. SEC. 6. Calibration and Sealing of Dispensing Pumps. All fuel pumps used in petroleum retail outlets to dispense petroleum products sold to the public must be properly calibrated and after calibration immediately sealed by authorized calibrating entity. A dispensing pump that is not calibrated or sealed or one that goes off calibration shall be marked with an out-of-order sign and shall not be used until the said pump is recalibrated and resealed. The authorized calibrating entities are the Municipal or City Treasurer, or in their absence or incapacity, the NSTA or, in their absence or incapacity, any other government agency authorized therefor, or in their absence, the oil company. In locations where the Municipal or City Treasurer is capable of calibration, a calibration by other authorized entities shall be provisional and subject to final calibration by the Treasurer. The authority performing the calibration shall install a seal after calibration to guard against unauthorized adjustment of the dispensing pump meter which seal may not be broken until the next calibration by an authorized entity.

The calibration shall be performed as often as may be necessary to correct any deviation from the appropriate delivered quantity as measured by a calibration bucket certified and sealed by the NSTA. Such a calibration bucket shall be maintained at all times in the retail outlet premises.

SEC. 7. Calibration, Registration and Sealing of Petroleum Product Transport Containers. All tank trucks, tank trailers and other mobile containers used to transport measured amounts of petroleum products in bulk must be registered with the Bureau. Moreover, the capacity of such transport containers must be certified and calibrated by the National Science and Technology Authority or by an other government agency authorized therefor. Calibration markers shall be fixed and provided with seal by the calibrating agency. Removal, tampering or absence of such seals shall disqualify such containers from further use until recalibration and resealing by the proper authorities is performed. In the absence or incapacity of a properly constituted authority to perform this requirement, calibration and sealing by the oil company shall suffice. To guard against pilferage in transit, tank trucks, tank trailers and other mobile containers of petroleum products in bulk shall have all the valves, hatches, and other openings sealed closed by the marketer before leaving the source depot. Such seal may not be removed, tampered or broken except by buyer or his representative, or the supplier, and only at their respective places of business. A broken or tampered valve or hatch seal, or the absence of one, shall give rise to the presumption that the container is underfilled or that the product contained is adulterated and the shipment may be refused by the buyer. SEC. 8. LPG Cylinder Sealing.


Within one hundred eighty (180) days from the effectivity of these rules and regulations, all LPG cylinders shall be provided with seal after every filling. LPG in cylinders with broken seal or without seal shall not be sold or distributed thereafter.

The seal must be of the type that must be broken or destroyed before the product can flow out of the cylinder. The seal shall be subject to approval of the Bureau. The marketer and the filling plant, if the latter is a different entity, shall be jointly responsible for providing the seal required under the Act.

RULE IIIPETROLEUM PRODUCT ADULTERATION

SECTION 1. Petroleum products not meeting the pertinent PSA specifications shall be deemed adulterated: Provided, That in the case of the octane number specifications for gasoline, a deviation of one (1) octane or less below the minimum shall be considered as meeting specifications for the purpose of the Act. Mixing water or other substances not miscible and forming a separate layer from the petroleum product, in quantities exceeding the PSA allowable water and sediments content, shall constitute adulteration. The sale, distribution, transportation, exchange or barter of adulterated products as defined in this Section or possession thereof for any of the above purposes, shall constitute an act of adulteration prohibited and penalized under the Act. SEC. 2. Sampling and Testing of Petroleum Products by Oil Companies.

(a) Oil companies shall take storage tank samples after every shipment of premium and regular gasoline to their depots/bulk plants and shall keep such samples except where such storage tank samples have

been tested, and found to meet the PSA specifications in which case the results of the test shall be duly recorded and kept in the depot for at least one year. Each sample shall be clearly identified as to source tank and date of sampling. The sample shall be kept for at least three weeks more after the next shipment.

(b) Oil companies shall expeditiously respond

to dealer request for confirmatory or verification testing of petroleum products.

(c) Oil companies shall also periodically take

samples and test premium and regular gasoline stock of their retail outlets at least once every three (3) months. The test results shall include octane number and shall be reported to the Bureau on a monthly basis.

SEC. 3. Testing or Retention of Sample of Petroleum Products by the Dealer/Operator.

As a measure against delivery of adulterated products, dealers are required to do either (a) or (b) below: (a) The dealer/operator shall take one (1)

liter sample each of the premium and/or regular gasoline delivered. The samples shall be placed in a suitable container and sealed in the presence of the tank truck driver who shall verify the sample-taking by so indicating on the invoice. The sample shall be kept by the dealer for at least one (1) month or until the third delivery thereafter, whichever is shorter.

(b) Using a hydrometer, take the API gravity

or density and obtain the corrected API gravity at 60 degrees Fahrenheit or specific gravity at 15 degrees Celsius and compare this against the API gravity at 60 degrees.

(c) Fahrenheit or density at 15 degrees Celsius as indicated in the product invoice.


For this purpose, oil companies shall indicated the API gravity at 60 degrees Fahrenheit or density at 15 degrees Celsius of all deliveries of premium and regular gasoline the corresponding invoice. A dealer may refuse to accept the shipment if the API gravity difference exceeds by 0.6 degrees API or the density difference exceeds by 0.0024. Both oil company and dealer specific gravity or density readings should be recorded in a logbook kept for this purpose.

Dealers may require their oil company supplier to perform verificatory quality tests on products received. SEC. 4. Sample Taking by the Bureau. Bureau inspectors and other law enforcement agents may require oil companies, marketers, dealers, haulers and retail outlets to provide one (1) liter sample of petroleum products for sale for laboratory test purposes. SEC. 5. Removal of Water Phase in Underground Tank by Dealer/Operator of Petroleum Product Retail Outlet. The oil company supplier of dealers and operators of petroleum retail outlets should ensure that the product suction line of their storage tanks is elevated at least four (4) inches from the bottom of the tank and the dealers and operators of petroleum retail outlets should periodically remove the water phase to avoid water draw off with the product.

RULE IV

UNDERDELIVERY AND UNDERFILLING

SECTION 1a. Underdelivery in Dispensing Pumps. The quantity of petroleum products delivered by dispensing pumps in retail outlets as measured by the dispensing pump meter shall not be less than actual quantity by more than

50 millimeters for every 10 liters as measured by a calibrating bucket certified by the NSTA. The calibrating bucket shall be filled to the 10 liter mark three (3) times as low, medium and fast flow rates and the average quantity as measured by the pump meter shall constitute the quantity to be compared with the actual quantity. Use of such pumps n the sale of petroleum products shall be punishable under the Act. The absence of an out-of-order sign or padlock on the pump that is found under-delivering shall constitute a presumption of actual use of the pump in the sale of the petroleum product. A dispensing pump found with broken or no seal shall be presumed to be under delivering and absence of out-of-order notice or padlock shall likewise give rise to a presumption of actual use of the pump in the sale of the product. SEC. 1b. Daily Testing of Dispensing Pumps by Dealer.

All retail outlets shall test dispensing pump meters daily before opening for business using an NSTA calibrated bucket. Any pump not delivering the correct quantity shall be marked with an out-of-order sign and shall not be used until said pump is recalibrated and resealed by a proper authority. Retail outlets are given thirty (30) days from the date of effectivity of these Rules to secure an NSTA certified calibrating bucket and comply with the requirement of this Section. The oil companies shall be responsible for informing their respective dealers of the requirements of this Section and of reporting to the Bureau their dealers compliance. The dealer calibration bucket must be recalibrated and resealed once every twelve (12) months by the NSTA. The dealer shall keep a written record or logbook of the daily testing required herein shall be made available to Bureau inspectors and to the public upon demand.


SEC. 1c. Calibration of Dispensing Pumps by Oil Companies. Oil companies shall respond expeditiously to their dealers request for calibration of pumps subject to the provisions of Section 6, Rule 12 hereof. All oil companies shall also periodically calibrate all of the dispensing pumps of their dealers and check their calibration bucket at least once every sixty (60) days. The results of these calibrations must be reported to the Bureau every three (3) months. All calibrations shall be duly documented and signed by the mechanic who performed the calibration and check their calibration bucket and countersigned by the retail outlet dealer. A copy of this document shall be kept on file at the retail outlet. After the calibration, a sticker of at least one-half (1/2) inch by two (2) inches bearing the date of the calibration and the initials of the mechanic who calibrated the pump shall be posted on the face of the pump calibrated.

SEC. 1d. Testing of Dispensing Pumps by Bureau Personnel and/or by Other Law Enforcement Agents. The dealer shall allow and cooperate with Bureau inspectors and other law enforcement agents in testing the calibration of dispensing pumps. SEC. 2a. Underfilling of LPG Cylinders. In case of LPG for sale in cylinders, the net LPG quantity contained shall not be more than three tenths (0.3) of one kilogram less than the required cylinder content. Shortage in the quantity contained exceeding this quantity shall constitute underfilling. A broken or tampered seal, or the absence of one, shall give rise to the presumption that the LPG cylinder is underfilled. Possession of underfilled LPG cylinders not properly so identified or taken out from the sales

area accessible to the public, gives rise to presumption that they are for sale. LPG cylinders with water capacity of twenty-one (21) liters to twenty-nine (29) liters shall contain eleven (11) kilograms.

SEC. 2b. Weighing Devices Required. All LPG marketers, dealers and retail outlets selling directly to end-users shall maintain at all times in their premises a suitable weighing scale for LPG cylinders calibrated ands sealed by the proper authority. Such devices shall meet the required contents before selling or delivering these in its sales area accessible to its customers. SEC. 2c. Checking of LPG Cylinder Content by Dealers and Retail Outlets. All marketers, dealers and retail outlets selling directly to end-users shall check by weighing that the LPG in its cylinders meet the required contents before selling or delivering or placing these in its sales or pick-up area accessible to its customers. SEC. 2d. Oil companies, marketers and dealers shall periodically sample and check the LPG sold by their respective dealers and/or retail outlets to verify compliance with the LPG contents requirement at least once every ninety (90) days. They shall likewise check whether dealers and/or retail outlets weighing devices are calibrated and sealed in accordance with Section 2b above. The results of such test shall be recorded and kept by the oil company, marketer or dealer for at least one (1) year and shall be made available to the Bureau on demand.

RULE VHOARDING

SECTION 1. All oil companies and marketers shall be open during normal business hours


herein set to be from eight in the morning (8:00 A.M.) to four-thirty in the afternoon (4:30 P.M.), Monday through Friday. All dealers of gasoline products shall be open daily and during normal business hours herein set to be from seven in the morning (7:00 A.M.) to seven in the evening (7:00 P.M.). Dealers and retail outlets of liquefied petroleum gas shall be open during normal business hours set to be from eight in the morning (8:00 A.M.) to five in the afternoon (5:00 P.M.), Monday through Friday. Except for good cause, all oil companies, marketers, dealers and retail outlets may not refuse to sell petroleum products. Refusal to sell when the product is available and the consumer is paying in cash shall constitute hoarding except when the available product consists of unusable bottoms usually consisting of the bottom four inches content of the storage tank in the case of gasoline dealers. SEC. 2. Undue accumulation of petroleum products in times of tight supply and shortly before an anticipated price increase by marketers, retail outlets or consumers shall constitute hoarding. Undue accumulation shall mean quantities beyond the normal inventory levels maintained during the immediately preceding thirty (30) days for marketers or retail outlets, and in the case of consumers.

RULE VIOVERPRICING

SECTION 1. Petroleum products whose prices are set by the Board of Energy may not be sold above such fixed prices. Sale of petroleum products at prices in excess of the fixed prices shall constitute overpricing punishable under the Act. SEC. 2. In outlying areas where no price is published by the Board of Energy, the retailer shall not sell at a price not more than the

ceiling price in the nearest locality where a Board of Energy price is set. A retailer may, for reasonable cause, request the Board of Energy to set a different price for his locality.

RULE VIIMISUSE OF PETROLEUM ALLOCATION

SECTION 1. In times of short supply of petroleum products, the Minister of Energy and/or any other authority created for this purpose may, with the approval of the President of the Philippines allocate or ration the available supplies. Any consumer or marketer who sells, exchanges, disposes or uses such allocation or ration other than for the purpose of which granted by the authority shall be in violation of the Act. Any misrepresentation for the purpose of gaining subject allocation shall likewise be a violation of the Act.

RULE VIII SPEED CONTESTS OR RALLIES

SECTION 1. Speed contests or rallies involving mainly the use of motor powered vehicles, watercraft or aircraft may not be held without prior authorization and permit from the Bureau.

RULE IX

SKYDIVING AND WATERSKIING

SECTION 1. Skydiving and waterskiing for pleasure or sports requiring the use of motorized aircraft or watercraft, respectively, shall not be allowed except when the fuel used in the aircraft or watercraft is methanol.

RULE XIMPOUNDING OF EVIDENCE

SECTION 1. Impounding of petroleum and/or petroleum products constituting evidence of illegal trading, adulteration, short selling, hoarding, overpricing and misuse of petroleum allocation shall be applicable in the following cases:


(1) Adulterated petroleum products in bulk depots, retail outlets, or in transit.

(2) LPG in cylinders found to be underfilled. (3) Petroleum products held in violation of

the Anti-Hoarding provisions of the Act. (4) Petroleum product allocations obtained

or disposed in violation of the Misuse of Allocation provisions of the Act.

(5) Petroleum products sold at a price

exceeding the authorized price including all stocks still in possession of the seller.

(6) Petroleum products diverted from

buyers designated delivery point. (7) Petroleum products sold without Bureaus

license or transported by haulers without Bureau license.

(8) Petroleum products sold without

receipts. (9) LPG filled into cylinders by filling plants

without license from the Bureau and/or filled in cylinders not owned by the filling plant or marketer and who do not have written authorization by the owner to use or fill the cylinder.

(10) LPG in cylinders without tare weight, or

without seal after the sealing requirement goes into effect.

During the pendency of the criminal or administrative proceedings, the petroleum products stored in fixed tanks and which constitute evidence may be impounded in site by the appropriate authorities.

RULE XIADMINISTRATIVE PROCEEDINGS

SECTION 1. Requirement of Notice and Hearing and Waiver Thereof.

Through the administrative proceedings, the Bureau is empowered to impose, after due notice and hearing, the penalties stated hereunder for violation of any provision of the Act and these implementing rules and regulations: Provided, however, That hearing in any administrative proceedings may be waived by respondent. SEC. 2. Duration of Administrative Proceeding. Administrative proceeding shall be decided within thirty (30) days after filing of the last responsive pleading by the respondent, or the termination and completion of the administrative proceedings. SEC. 3. Effect of Imposition of Administrative Sanction. The administrative sanction that may be imposed shall be without prejudice to the filing of a criminal action as the case may warrant. SEC. 4. Administrative Penalties. Pursuant to the power of the Bureau to issue, suspend or revoke licenses, and in order to protect the public from short selling and adulteration of petroleum products, the following administrative actions may be taken: (a) Preventive Suspension During

the pendency of an administrative proceeding, the Bureau may suspend the operations of an oil company, marketer, dealer, hauler, LPG refiller or retail outlet where any one of the following circumstances are present:

(1) Where at least three pumps in a retail outlet are found to be under delivering by 100 milliliters or greater per 10 liters;

(2) Where more than fifty (50) percent

of the pumps in an outlet are under


delivering by 100 milliliters or greater per 10 liters;

(3) Where the under delivering pump or

pumps are without seal or the seal is broken or tampered;

(4) Where the product sold is found

adulterated by BEU inspectors, as to the tank and pump involved;

(5) Where more than twenty (20)

percent of the LPG cylinders inspected and tested are underfilled;

(6) Where an LPG marketer, refiller,

dealer or retail outlet sells LPG in cylinders without the required seal;

(7) Where tank truck, lorry, hauling

vehicle and other conveyors are not calibrated and sealed as required by the Act.

(b) The preventive suspension shall not exceed thirty (30) days.

(8) Fine or suspension of not more than Ten Thousand Pesos (P 10,000.00); or

(9) Suspension of license; or (10) Revocation of license.

SEC. 5. Bureau Rules of Practices and Procedures Applicable.

Whenever practicable and convenient, the provisions of Bureau Rules of Practice and Procedures Governing Hearings Before the Bureau issued on August 2, 1982, and which

took effect on October 18, 1982, shall be applicable in the administrative proceedings under the Act.

RULE XIIREPEALING CLAUSE

SECTION 1. Any rule or regulation inconsistent with the provisions of these Rules is hereby repealed or modified accordingly.

RULE XIIISEPARABILITY

SECTION 1. If, for any reason or reasons, any part of these Rules be declared unconstitutional or invalid, no other part of provisions hereof shall be affected thereby.

RULE XIVEFFECTIVITY

SECTION 1. These Rules and Regulations shall take effect fifteen (15) days from the date of its publication in two (2) newspapers of general circulation. Makati, Metro Manila, 3 August 1983. ORLANDO GALANGActing DirectorBureau of Energy Utilization APPROVED:

GERONIMO Z. VELASCOMinister of Energy


Section 1. Rule [V, Section 2a is hereby amended to read as follows:

Section 2a. UNDERFILLING OF LPG CYLINDERS

The net LPG content sold in LPG cylinders with water capacity of twenty one (21) liters to twenty-nine (29) liters shall not be less than 11.0 kilograms when measured at the refilling plants. The net quantity contained when sold to the consumer shall not be more than three tenths (0.3) of one kilogram less than 11.0 kilograms, a shortage of more than three tenths (0.3) of one kilogram per cylinder shall constitute an act of underfilling. A broken or tampered seal, or the absence of one, shall give rise to the presumption that the LPG cylinder is underfilled. Possession of underfilled LPG cylinders not properly so identified or taken

out from sales area accessible to the public gives rise to the presumption that they are for sale. Moreover, the allowable deviation in the contents of other cylinder sizes shall not exceed three tenths (0.3) of one kilogram from the indicated net weight.

Section 2. This amendment shall take effect fifteen (15) days from the date of its publication in two newspapers of general circulation.

Makati, Metro Manila, 04 March 1985.

ORLANDO L. GALANGActing DirectorBureau of Energy Utilization

REPUBLIC OF THE PHILIPPINESMINISTRY OF ENERGY

BUREAU OF ENERGY UTILIZATION

BEU MEMORANDUM CIRCULAR 85-3-348

TO: ALL AUTHORIZED LIQUIFIED PETROLEUM GAS (LPG) REFILLERS

SUBJECT: AMENDMENT TO RULE IV, SECTION 2a (UNDERFILLING OF LPG CYLINDER) OF THE RULES AND REGULATIONS ON THE IMPLEMENTATION OF BATAS PAMBANSA BLG. 33, AS

AMENDED BY PRESIDENTIAL DECREE NO. 1865 ISSUED ON MAY 25,1983

EIAB MEMORANDUM CIRCULAR NO. 95-03-001

WHEREAS, pursuant to Sec. 12 (c) and Sec. 17 of R.A. No. 7638, the Department of Energy through the Energy Industry Administration Bureau is mandated by law to regulate among others the trade and business, sale, marketing, and distribution of Liquefied Petroleum Gas (LPG);

WHEREAS, it has come to the knowledge of the Bureau that a number of 50 kg. cylinders presently used in the market do not have any cylinder head collar making it difficult to handle and/or hold these cylinders, thus incidents of dropping of cylinders during deliveries are not far-fetched, which result to leakages of gas, endangering human lives and properties;


WHEREAS, as a precautionary measure, all LPG cylinders, especially the 50 kg. cylinders, must have cylinder head collars for better handling and for safety reasons; WHEREAS, the installation of cylinder head collars by duly accredited LPG tank manufacturers or repair service entities cannot be done on a short period without adversely affecting the LPG supply to consumers, thus in the interim the use of an LPG valve protective cap on all 50 kg. cylinders would suffice until such time that the required LPG tank collar is installed; WHEREAS, the Bureau is also aware of instances wherein refilled LPG cylinders comes out or are released from the refilling plant with no brand name indicated on the refilled cylinders, thus making it difficult to identify the source or owner of the tank for purposes of pinpointing responsibility in cases of underfilling and/;or unsafe condition of the tank; WHEREAS, reports have also been received by this Bureau from the LPG refillers/marketers of the existence of several LPG delivery trucks with different brand-names and/or unbranded for refilling with no signboard or name indicated on the delivery truck showing the specific LPG brand name which the truck represents or is authorized by this Bureau to carry, resulting in the problem of distinguishing the legitimate LPG truck hauler from those haulers that are unauthorized or not duly registered with this Bureau; WHEREFORE, premises considered, and by virtue of the powers vested in this Bureau, it is ordered, as it is hereby ordered, the following: (1) Within one (1) year from the date of this

Circular, all LPG refillers and/or marketers shall cause the installation of cylinder head collar on all LPG tanks especially the 50 kg. tanks owned by them or which have come to their possession for refilling and/or use. The installation

of said cylinder collar should be made only by government accredited LPG tank manufacturer or installer. To ensure compliance with the safety standards on repair of LPG tanks, the accredited manufacturer/installer must submit a certification to this Bureau as soon as said repair and installation is completed, attesting to such compliance.

(2) Pending completion of the installation

of the required cylinder collar, all LPG refillers and/or marketers shall install protective cylinder valve cap or cover on all 50 kg. cylinders, immediately upon notice of this Circular. Said valve cap shall always be used especially during deliveries of cylinders and while the same is in transit unless the cylinder collar has already been installed, in which case the protective valve cap can be dispensed with.

(3) Immediately upon notice of this Circular,

all LPG refillers and/or marketers are strictly prohibited from releasing; or discharging from their refilling plants and/or selling to the consumers any LPG tanks whether 11 kg. or 50 kg. with no brand name indicated on the tanks (unbranded). Accordingly, upon effectivity of this Circular, all LPG cylinders released from the refilling plant or LPG depots should bear clearly the brand name of the refiller or marketer as the case may be.

(4) Furthermore, all LPG refillers and/or

marketers are prohibited from refilling LPG tanks coming from LPG trucks or haulers that do not have clear and legible signboard attached to said delivery trucks showing the specific LPG brand name that it represents or sells to the general public. The absence of the signboard or LPG brand name on the delivery trucks gives rise to the presumption that said hauler is not duly registered or authorized by this Bureau. Corollary thereto, all owners of LPG truck haulers are directed


DEPARTMENT CIRCULAR NO. 2000-05-007

EMBOSSED IDENTIFYING MARK ON LPG CYLINDERS AND INSTILLATION OF COLLARS WITH DISTINCTIVE DESIGN OR MARKINGS ON EXISTING LPG CYLINDERS DURING REQUALIFICATION

FOR :- LPG REFILLERS ASSOCIATION (LPGRA)- PHILIPPINE LPG ASSOCIATION

(PLGPA)- SOUTHERN ISLAND TASK FORCE

(SILTF)- LIQUIGAZ PHILIPPINES

CORPORATION (LPC)- PETRONAS ENERGY PHILIPPINES,

INC. (PEPPI)- PRYCE GASES INCORPORATED (PGI)- NATION GAS (NATION)- TOTAL LPG PHILIPPINES (TOTAL)- PETRON CORPORATION (PETRON)- PILIPINAS SHELL PETROLEUM CORP.

(PSPC)- CALTEX (PHILIPPINES), INC. (CPI)- ISLAND AIR PRODUCTS (ISLAND)- CAPITOL ALLIED TRADING CORP.

(CATGAS)- MANILA GAS CORPORATION (MGC)- PHILIPPINE ASSOCIATION OF LPG

CYLINDERRS MANUFACTURERS, INC. (PALCMI)

- ALL OTHERS CONCERNED

WHEREAS, pursuant to Section 2 and Section 5 (k) of Chapter 1 of RA No. 7638, the Department of Energy (DOE) shall formulate rules and regulations as may be necessary to guide the operations of both government and private entities involved in energy resource supply and distribution; WHEREAS, it has come to the attention of this Office that there is a substantial number of LPG cylinders circulating without appropriate distinguishing marks to identify the owner or source for purpose of pinpointing responsibility in cases of underfilling and other violations related to said cylinders; WHEREAS, with the intensified drive against violators in the conduct of the downstream LPG industry the DOE finds that there is a need to address the problem of proper identification;

WHEREFORE, premises considered, all concerned LPG players are hereby directed to

to strictly observe the requirement on the display of a signboard on the delivery trucks as aforementioned.

(5) Any violation of the directives in this Circular shall be subject to administrative sanctions:

First violation Warning and fine of Three Thousand

Pesos (P 3,000.00)Second Violation

Fifteen (15) days suspension of operation and fine of Five Thousand Pesos (P 5,000.00)

Third Violation

Thirty (30) days suspension of operation and fine of Five Thousand Pesos (P 5,0000.00)

Fourth Violation

Revocation and/or cancellation of license.

(6) This Circular shall take effect fifteen (15) days after its publication in the Official Gazette.

NEPTALI S. FRANCODirector Approved by: FRANCISCO L. VIRAYSecretary


strictly comply with the following: (1) In the manufacture of new LPG cylinders

the body shall be embossed with clear markings or signs indicating ownership.

(2) New and locally manufactured cylinders

shall conform to the required Product Standard (PS) mark.

(3) For imported cylinders the same shall

be marked with the appropriate Import Commodity Clearance (ICC) prior to local circulation.

(4) For existing LPG cylinders without the

embossed markings or signs, including all imported cylinders, distinctive collars or collars with distinctive designs or markings of permanent character shall be installed upon requalification or prior

DEPARTMENT CIRCULAR 2000-06-010

REVISED SCHEDULE OF PENALTIES IN THE LPG INDUSTRY OF 2000

Whereas, Batas Pambansa Blg. 33, as amended by P.D. 1865 defined certain prohibited acts inimical to the public interest and national security involving petroleum and/or petroleum products, prescribing penalties therefore and for other purposes;

Whereas, in 1983, the Bureau of Energy Utilization of the then Ministry of Energy issued rules and regulations on the implementation of Batas Pambansa Blg. 33, as amended by P.D. 1865;

Whereas, D.C. No. 2000-03-003 issued on 17 March 2000, emended certain provisions of E.R. 1-94 and its attendant rules and procedures;

Whereas, Section 15 of Republic Act No. 8479 provides for additional powers for the DOE Secretary which may readily be availed of to deter, restrain, and/or penalize any and all illegal, irregular, and anomalies business practice or activity, with the end in view of cultivating and instilling discipline, honesty, and fair trade practices in the consciousness of each and every player in all levels of the downstream oil industry.

Whereas, the recent development in the downstream oil industry more particularly the transition and shift from regulation to deregulation, the entry of new players in the industry, the growing concerns of consumers, relative to unfair trade practices, and the pressing need for government to

to local circulation, as the case may be. (5) The installation of the required collar

or distinctive markings of permanent character shall be made only by government accredited cylinders manufacturers or requalifiers with the date of installation properly indicated thereon.

This Department Circular shall take effect on (1) month after its complete publication in two (2) newspapers of general circulation. Fort Bonifacio, Taguig, Metro Manila, May 26, 2000.

MARIO V. TIAOQUISecretary


protect and safeguard public interests has made it imperative for the Department of Energy (DOE) to draw and formulate a new set of penalties for the various offenses relative to the LPG industry as outlined in the Implementing Rules and Regulations (IRR) of Batas Pambansa Bilang 33, as amended by the Presidential Decree No. 1865.

Wherefore, premises considered, the foregoing schedule of penalties shall complement said IRR and is hereby adopted for implementation subject to the pertinent provisions on procedures prescribed in the latter.

ARTICLE IGENERAL PROVISIONS

SECTION 1. SHORT TITLE - This Department Circular shall be known as the Revised Schedule of Penalties in the LPG Industry of 2000.

SECTION 2. COVERAGE - This Department Circular shall apply to all persons or entities engaged in any and all activities involving the commerce of Liquefied Petroleum Gas (LPG).

SECTION 3. DEFINITION OF TERMS -

(a) Refiller - refers to any person, whether natural or juridical, who buys LPG in bulk from bulk suppliers, refills LPG into cylinders under his own brand name or that of other LPG marketers.

(b) Marketer - refers to any person, whether natural or juridical, engaged in the sale of LPG, whether in bulk or retail, under his own brand name.

(c) Dealer - refers to any person, whether natural or juridical, engaged in the sale of LPG bottled into cylinders under contract with an oil company or marketer who owns the brand.

(d) Retail Outlet - refers to one who sells LPG bottled into cylinders directly to a consumer, with maximum floor stock of twenty (20) LPG cylinders.

(e) Tare-weight - refers to the weight of the LPG cylinder engraved in the collar and shall be expressed in kilograms indicated to at least one-tenth (0.1) of one kilogram. The marking shall not be less than 2.0 cm. in height.

(f) Authorized of Appropriate LPG Seal - refers to the protective cover placed on the gas outlet of an LPG cylinder, of the type that must be broken or destroyed before the LPG can flow out of the cylinder. It shall have a distinctive design, symbol, emblem or mark, identifying the owner of the LPG cylinder. The seal shall be subject to approval by the Department of Energy.

ARTICLE IITABLE OF OFFENSES AND THEIR

CORRESPONDING PENALTIES

SECTION 4. NO PRICE DISPLAY BOARD -

LPG Marketer/LPG Dealer/LPG Retail Outlet

1st Offense - Reprimand/warning letter2nd Offense - Recommend suspension of

business operation to the proper local government unit

3rd Offense - Recommend business closure to the proper local government unit and initiate criminal proceedings

SECTION 5. NO WEIGHING SCALE

A. LPG REFILLER/MARKETER

1st Offense - Fine of P 5,0002nd Offense - Fine of P 10,0003rd Offense - Recommend business

closure to the proper local government unit


B. DEALER

1st Offense - Fine of P3,0002nd Offense - Fine of P7,0003rd Offense - Recommend business


C. LPG RETAIL OUTLET

1st Offense - Reprimand2nd Offense - Fine of P500.003rd Offense - Fine of P1,000.00

SECTION 6. NO TARE WEIGHT OR INCORRECT TARE WEIGHT MARKINGS (REQUIREMENT ON ENGRAVED TARE WEIGHT SHALL TAKE EFFECT TWO (2) YEARS AFTER EFFECTIVITY OF THIS CIRCULAR)


1st Offense - Fine of P3,000 for each cylinder

2nd Offense - Fine of P5,000 for each cylinder

3rd Offense - Recommend business closure to the proper local government unit

B. DEALER







3rd Offense - Recommend business closure to the proper local government unit.

SECTION 7. NO APPROPRIATE OR AUTHORIZED LPG SEAL





B. DEALER








SECTION 8. NO TRADE NAME, UNBRANDED LPG CYLINDERS, NO SERIAL NUMBER, NO DISTINGUISHING COLOR, NO EMBOSSED IDENTIFYING MARKINGS ON CYLINDER OR DISTINCTIVE COLLAR OR DESIGN (REQUIREMENT ON SERIAL NUMBER AND DISTINCTIVE COLLAR OR DESIGN SHALL TAKE EFFECT TWO (2) YEARS AFTER EFFECTIVITY OF THIS CIRCULAR).






B. DEALER








SECTION 9. UNDERFILLED LPG CYLINDERS





B. DEALER








SECTION 10. TAMPERING, ALTERING, OR MODIFYING OF LPG CYLINDER THRU ANY MEANS SUCH AS BUT NOT LIMITED TO CHANGING THE VALVE, REPAINTING, AND RELABELLING BY ANY PERSON OR ENTITY OTHER THAN THE LEGITIMATE AND REGISTERED OWNER OF THE SAME. FOR THIS PURPOSE, LPG REFILLER, MARKETER, DEALER, OR RETAIL OUTLET, AS THE PURPOSE, LPG REFILLER, MARKETER, DEALER, OR RETAIL OUTLET, AS THE CASE MAY BE, WHO HAS POSSESSION OF SUCH ILLEGALLY TAMPERED, ALTERED, OR OTHERWISE MODIFIED LPG CYLINDER SHALL BE HELD LIABLE FOR THIS OFFENSE.





B. DEALER








SECTION 11. UNAUTHORIZED DECANTING OR REFILLING OF LPG CYLINDERS





SECTION 12. HOARDING OF PETROLEUM PRODUCTS INCLUDING LIQUEFIED PETROLEUM GAS

1st Offense - Fine of P10,000 per cylinder

2nd Offense - Recommend business closure to the proper local government unit plus the filing of appropriate criminal action.

SECTION 13. REFUSAL TO ALLOW OR COOPERATE WITH DULY AUTHORIZED INSPECTORS OF THE ENERGY INDUSTRY ADMINISTRATION BUREAU (EIAB) OF THE DEPARTMENT OF ENERGY IN THE CONDUCT OF THEIR INSPECTION/INVESTIGATION, WHETHER REGULAR AND ROUTINARY OR COMPLAINT-INITIATED.

1st Offense - Fine of P10,0002nd Offense - Recommend business


SECTION 14. REFUSAL OR FAILURE TO PAY FINE The Department of Energy shall recommend to the proper local government unit the closure of business of a respondent who refuses or fails to pay any administrative fine without prejudice to the filing of an appropriate criminal action if warranted.

ARTICLE IIIFINAL PROVISION

SECTION 15. SUCCESSION OF OFFENSES For purposes of determining the First, Second, and Third offenses the lapse of five (5) years of fifteen (15) official inspections of the Department of Energy, which ever comes first, from the time of the commission of the previous offense, shall be indicative of good business conduct and thus operate to give a new and clean record to the former offender. This, however, shall have no application in the event that the offenders LPG business has been previously closed by the proper local government unit pursuant to the provisions of this Circular.

SECTION 16. MAXIMUM TOTAL PENALTY In the imposition of pecuniary penalties the total fine shall not exceed Twenty Thousand Pesos (P20,000.00) for retail outlets.

SECTION 17. SEPARABILITY CLAUSE If, for any reason, any part or parts of these provisions be declared unconstitutional or invalid, no other part of the provisions hereof shall be affected thereby.

SECTION 18. EFFECTIVITY This Department Circular which supersedes Department Circular No. 2000-05-008 shall take effect one (1) month after its complete publication in two (2) newspapers of general circulation. However, the requirements of Engraved Tare Weight Marking referred to in Section 6 and Serial Number and Distinctive Collar or Design referred to in Section 8 shall take effect two (2) years after effectivity of this circular.

(SGD)MARIO V. TIAOQUISecretary


RELATED CASE:

Republic of the Philippines SUPREME COURT

Manila

THIRD DIVISIONG.R. No. 159149

June 26, 2006

The HONORABLE SECRETARY VINCENT S. PEREZ, in his capacity as the Secretary of the Department of Energy, petitioner,

vs.

LPG REFILLERS ASSOCIATION OF THE PHILIPPINES, INC., respondent QUISUMBING, J.:

Before us is a petition for review on certiorari under Rule 45, assailing the Decision1 and Order2 of the Regional Trial Court of Pasig City, Branch 161, in SCA Case No. 2318, which nullified Circular No. 2000-06-010 of the Department of Energy (DOE). The facts are undisputed. Batas Pambansa Blg. 33, as amended, penalizes illegal trading, hoarding, overpricing, adulteration, underdelivery, and underfilling of petroleum products, as well as possession for trade of adulterated petroleum products and of underfilled liquefied petroleum gas (LPG) cylinders.3 The said law sets the monetary penalty for violators to a minimum of P20,000 and a maximum of P50,000.4 On June 9, 2000, Circular No. 2000-06-010 was issued by the DOE to implement B.P. Blg. 33, thus:

SECTION 4. NO PRICE DISPLAY BOARD

LPG Marketer/LPG Dealer/LPG Retail Outlet

1st Offense - Reprimand/warning letter2nd Offense - Recommend suspension

of business operation to the proper local government unit

3rd Offense - Recommend business closure to the proper local government unit and initiate criminal proceedings

SECTION 5. NO WEIGHING SCALE

A. LPG Refiller/Marketer

1st Offense - Fine of P5,0002nd Offense - Fine of P10,0003rd Offense - Recommend business


B. Dealer

1st Offense - Fine of P3,0002nd Offense - Fine of P7,000 3rd Offense - Recommend business


C. LPG Retail Outlet

1st Offense - Reprimand2nd Offense - Fine of P500.003rd Offense - Fine of P1,000.00

SECTION 6. NO TARE WEIGHT OR INCORRECT TARE WEIGHT MARKINGS. (REQUIREMENT ON ENGRAVED TARE WEIGHT SHALL TAKE EFFECT TWO (2) YEARS AFTER EFFECTIVITY OF THIS CIRCULAR)






B. Dealer








SECTION 7. NO APPROPRIATE OR AUTHORIZED LPG SEAL A. LPG Refiller/Marketer




B. Dealer








SECTION 8. NO TRADE NAME, UNBRANDED LPG CYLINDERS, NO SERIAL NUMBER, NO DISTINGUISHING COLOR, NO EMBOSSED IDENTIFYING MARKINGS ON CYLINDER OR DISTINCTIVE COLLAR OR DESIGN (REQUIREMENT ON SERIAL NUMBER AND DISTINCTIVE COLLAR OR DESIGN SHALL TAKE EFFECT TWO (2) YEARS AFTER EFFECTIVITY OF THIS CIRCULAR)





B. Dealer









SECTION 9. UNDERFILLED LPG CYLINDERS





B. DEALER








SECTION 10. TAMPERING, ALTERING, OR MODIFYING OF LPG CYLINDER THRU ANY MEANS SUCH AS BUT NOT LIMITED TO CHANGING THE VALVE, REPAINTING, AND RELABELLING BY ANY PERSON OR ENTITY OTHER THAN THE LEGITIMATE AND REGISTERED OWNER OF THE SAME. FOR THIS PURPOSE, LPG REFILLER, MARKETER, DEALER, OR RETAIL OUTLET, AS THE CASE MAY BE, WHO HAS POSSESSION OF SUCH ILLEGALLY TAMPERED, ALTERED, OR OTHERWISE MODIFIED LPG CYLINDER SHALL BE HELD LIABLE FOR THIS OFFENSE





B. Dealer








SECTION 11. UNAUTHORIZED DECANTING OR REFILLING OF LPG CYLINDERS




SECTION 12. HOARDING OF PETROLEUM PRODUCTS INCLUDING LIQUEFIED PETROLEUM GAS

1st Offense - Fine of P10,000 per cylinder


2nd Offense - Recommend business closure to the proper local government unit plus the filing of appropriate criminal action

SECTION 13. REFUSAL TO ALLOW OR COOPERATE WITH DULY AUTHORIZED INSPECTORS OF THE ENERGY INDUSTRY ADMINISTRATION BUREAU (EIAB) OF THE DEPARTMENT OF ENERGY IN THE CONDUCT OF THEIR INSPECTION/INVESTIGATION, WHETHER REGULAR AND ROUTINARY OR COMPLAINT-INITIATED

1st Offense - Fine of P10,0002nd Offense - Recommend business


SECTION 14. REFUSAL OR FAILURE TO PAY FINE The Department of Energy shall recommend to the proper local government unit the closure of business of a respondent who refuses or fails to pay any administrative fine without prejudice to the filing of an appropriate criminal action if warranted.5

Respondent LPG Refillers Association of the Philippines, Inc. asked the DOE to set aside the Circular for being contrary to law. The DOE, however, deni

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