APRIL 21, 2015

NR # 3808B

House bodies approve bill creating a regulatory framework

for LPG industry
The House Committees on Energy and Trade and Industry have reported out for
floor deliberation a measure seeking to establish a regulatory framework for the safe
operations of the Liquefied Petroleum Gas (LPG) industry.
House Bill 5617, which substituted House Bill 396 authored by Rep. Susan A. Yap
(2 District, Tarlac) and House Bill 756 filed by Rep. Arnel U. Ty (Party-list, LPGMA),
also sets standards of conduct and codes of practice for the industry.
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Yap said the measure, to be known as the LPG Industry Regulation and Safety
Act, would address quality and safety concerns and uphold the rights of consumers to
freely choose the LPG brand they want to purchase.
The LPG industry has already marked a significant portion in the market due to its
high demand. Operating under a regulated downstream oil industry structure, it allows its
market participants to engage in unfair and unsafe trade practices, hurting consumers and
to a large extent, causing negative externalities to society, Yap said.
The measure establishes a regulatory framework for the importation, refining,
refilling, transportation, distribution and marketing of liquefied petroleum gas (LPG), and
the manufacture, requalification, exchange and swapping or improvement of LPC
cylinders.
It also creates the LPG Monitoring and Enforcement Task Force to assist the
Department of Energy (DOE) in monitoring and compliance standards inspection, and in
the exercise of other powers and functions necessary to give force and effect to the
proposed Act.
The bill mandates the DOE to deputize the Department of Trade and Industry (DTI)
in the processing of the License to Operate for dealers and retailers, subject to the
standards set in the proposed Act.
Under the bill, engaging in business without license to operate, engaging in business
without accreditation, refusal or obstruction of inspection, failure to post license to
operate, failure to submit reportorial requirements, illegal storage, failure to comply with
product standards, adulteration, underfilling, illegal refilling, hoarding, unauthorized
trading of LPG cylinders are prohibited and fined with a maximum of P500,000 for an
individual and P1,000,000, for a corporation.

Upon prior consultation with the LPG industry participants and government
agencies concerned, the DOE shall determine the mechanics, rules, and regulations needed
for the implementation of a newly established Philippine LPG Cylinder Improvement
Program with the objective of safeguarding and ensuring the safety of the consumers.
The measure also stipulates the monitoring and enforcement mechanisms for the
LPG industry, specifically the reports and disclosures required to be submitted by the LPG
industry participants to DOE, and the central database of LPG Industry Participants to be
created by the DOE.
To enhance awareness among LPG consumers and end-users, the measure requires
DOE and the DTI to disseminate information about the proposed Act.
A Joint Congressional Oversight Committee shall be created to monitor the
implementation of the proposed Act.
The measure directs the effective coordination between the DOE and the DTI, and
grants certain powers and functions to the DTI, the Department of Interior and Local
Government (DILG), the Philippine National Police (PNP) and the local government units
(LGUs) for the effective implementation of the proposed Act.
Aside from Yap, Ty and Reps. Reynaldo Umali (2nd District, Oriental Mindoro) and
Mark Villar (Lone District, Las Pias City), who chair the Committee on Energy and the
Committee on Trade and Industry, respectively, other authors of the bill are Reps.
Wilfredo Caminero (2nd District, Cebu), Walden Bello (Party List, AKBAYAN), Lawrence
Lemuel Fortun (1st District, Agusan Del Norte), Felix William Fuentebella (4 th District,
Camarines Sur), Jesus Sacdalan (1st District, North Cotabato), Rosenda Ann Ocampo (6 th
District, Manila), Gwendolyn Garcia (3rd District, Cebu), Ann Hofer (2nd District,
Zamboanga Sibugay), Celso Lobregat (1st District, Zamboanga City), Ma. Valentina Plaza
(1st District, Agusan Del Sur), Rosemarie Arenas (3 rd District, Pangasinan), Juliet Cortuna
(Party List, A Teacher), Isagani Amatong (3 rd District, Zamboanga Del Norte), Pryde
Henry Teves (3rd District, Negros Oriental), Henedina Abad (Lone District, Batanes),
Sherwin Tugna (Party List, Cibac), Silvestre Bello III (Party List, 1BAP), Michael Angelo
Rivera (Party List, 1CARE), Isidro Ungab (3 rd District, Davao City), Dakila Carlo Cua
(Lone District, Quirino), JC Rahman Nava (Lone District, Guimaras), Mariano Piamonte,
Jr. (Party List, A TEACHER), Leopoldo Bataoil (2 nd District, Pangasinan), Leah Paquiz
(Party List, ANG NARS), Juliette Uy (2nd District, Misamis Oriental), Jose Atienza, Jr.
(Party List, BUHAY), Arthur Defensor, Jr. (3rd District, Iloilo), Jesulito Manalo (Party List,
ANGKLA), Ronald Cosalan (Lone District, Benguet), Sonny Collantes (3 rd District,
Batangas), Arthur Yap (3rd District, Bohol), Antonio Lagdameo, Jr. (2nd District, Davao Del
Norte), Jorge Almonte (1st District, Misamis Occidental), Raul del Mar (1 st District, Cebu
City), Cheryl Deloso-Montalla (2nd District, Zambales), Jonathan Dela Cruz (Party List,
ABAKADA), Benhur Salimbangon (4th District, Cebu), Samuel Pagdilao (Party List,
ACT-CIS), Raymond Democrito Mendoza (Party List, TUCP), Rogelio Espina (Lone
District, Biliran), Jose Tejada (3rd District, North Cotabato), George Arnaiz (2 nd District,
Negros Oriental), Carlos Isagani Zarate (Party List, Bayan Muna), Neri Colmenares (Party
List, Bayan Muna), and Fernando Hicap (Party List, ANAKPAWIS). (30) jc