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Petitioner Vs Vs Respondent: Third Division
Petitioner Vs Vs Respondent: Third Division
DECISION
QUISUMBING , J : p
Before us is a petition for review on certiorari under Rule 45, assailing the Decision 1
and Order 2 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 under lling of petroleum products, as well as
possession for trade of adulterated petroleum products and of under lled lique ed
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 —
A. LPG Refiller/Marketer
1st Offense - Fine of P5,000
2nd Offense - Fine of P10,000
3rd Offense - Recommend business closure
to the proper local government unit
B. Dealer
1st Offense - Fine of P3,000
2nd Offense - Fine of P7,000
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3rd Offense - Recommend business closure to the
proper local government unit
C. LPG Retail Outlet
1st Offense - Reprimand
2nd Offense - Fine of P500.00
3rd Offense - Fine of P1,000.00
A. LPG Refiller/Marketer
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
1st Offense - Fine of P2,000 for each cylinder
2nd Offense - Fine of P4,000 for each cylinder
3rd Offense - Recommend business closure to the
proper local government unit
C. LPG Retail Outlet
1st Offense - Fine of P1,000 for each cylinder
2nd Offense - Fine of P2,000 for each cylinder
3rd Offense - Recommend business closure to the
proper local government unit
A. LPG REFILLER/MARKETER
1st Offense - Fine of P4,000 for each cylinder
2nd Offense - Fine of P6,000 for each cylinder
3rd Offense - Recommend business closure to the
proper local government unit
B. DEALER
1st Offense - Fine of P3,000 for each cylinder
2nd Offense - Fine of P4,000 for each cylinder
3rd Offense - Recommend business closure to the
proper local government unit
C. LPG RETAIL OUTLET
1st Offense - Fine of P1,000 for each cylinder
2nd Offense - Fine of P2,000 for each cylinder
3rd Offense - Recommend business closure to the
proper local government unit
Respondent then led a petition for prohibition and annulment with prayer for
temporary restraining order and/or writ of preliminary injunction before the trial court.
After trial on the merits, the trial court nulli ed the Circular on the ground that it
introduced new offenses not included in the law. 6 The court intimated that the Circular, in
providing penalties on a per cylinder basis for each violation, might exceed the maximum
penalty under the law. The decretal part of its Decision reads:
IN VIEW OF THE FOREGOING, this Court renders judgment declaring DOE
Circular No. 2000-06-010 null and void and prohibits the respondent from
implementing the same.
SO ORDERED. 7
WHETHER OR NOT THE COURT A QUO GRAVELY ERRED IN HOLDING THAT "A
SCRUTINY OF THE NEW SET OF PENALTIES PROVIDED BY THE CIRCULAR
SHOWS THAT THE PENALTIES THIS TIME ARE BASED ON PER CYLINDER
BASIS"; THAT "BEING SUCH, NO CEILING WAS PROVIDED FOR AS TO THE
ADMINISTRATIVE FINES"; THAT "AS ILLUSTRATED BY THE PETITIONER, FOR
JUST ONE LPG CYLINDER FOUND VIOLATING AT LEAST SEC[TIONS] 6, 7, 8, 9, 10
AND 11 OF THE [CIRCULAR], A FINE OF P24,000.00 IS IMPOSED;" AND THAT
"THIS WILL CLEARLY BE BEYOND THE P10,000.00 PROVIDED BY THE LAWS."
III
IV
WHETHER OR NOT THE COURT A QUO GRAVELY ERRED IN HOLDING THAT
SINCE SECTION 5(g) OF R.A. 7638 FINDS NO REFERENCE IN DOE CIRCULAR NO.
2000-06-010, THE SAME SHOULD BE DISREGARDED.
V
WHETHER OR NOT THE COURT A QUO GRAVELY ERRED IN HOLDING THAT "ON
THE NEW OFFENSES INTRODUCED IN THE CIRCULAR SUCH AS SECTIONS 4, 5,
10, 13 AND 14 AND THE IMPOSITION OF THE GRADUATED PENALTIES ON 'A
PER CYLINDER BASIS', THIS COURT FINDS [NO] REASON TO DISTURB ITS
FINDINGS THAT RESPONDENT-MOVANT EXCEEDED ITS AUTHORITY. . . . IT
SHOULD BE REMEMBERED THAT BP BLG. 33 AS AMENDED AND P.D. 1865 ARE
CRIMINAL STATUTES AND MUST BE CONSTRUED WITH SUCH STRICTNESS AS
TO CAREFULLY SAFEGUARD THE RIGHTS OF THE DEFENDANT."
VI
For an administrative regulation, such as the Circular in this case, to have the force
of penal law, (1) the violation of the administrative regulation must be made a crime by the
delegating statute itself; and (2) the penalty for such violation must be provided by the
statute itself. 1 6
The Circular satis es the rst requirement. B.P. Blg. 33, as amended, criminalizes
illegal trading, adulteration, under lling, hoarding, and overpricing of petroleum products.
Under this general description of what constitutes criminal acts involving petroleum
products, the Circular merely lists the various modes by which the said criminal acts may
be perpetrated, namely: no price display board, no weighing scale, no tare weight or
incorrect tare weight markings, no authorized LPG seal, no trade name, unbranded LPG
cylinders, no serial number, no distinguishing color, no embossed identifying markings on
cylinder, under lling LPG cylinders, tampering LPG cylinders, and unauthorized decanting
of LPG cylinders. These speci c acts and omissions are obviously within the
contemplation of the law, which seeks to curb the pernicious practices of some petroleum
merchants.
As for the second requirement, we nd that the Circular is in accord with the law.
Under B.P. Blg. 33, as amended, the monetary penalty for any person who commits any of
the acts aforestated is limited to a minimum of P20,000 and a maximum of P50,000.
Under the Circular, the maximum pecuniary penalty for retail outlets is P20,000, 1 7 an
amount within the range allowed by law. However, for the refillers, marketers, and dealers,
the Circular is silent as to any maximum monetary penalty. This mere silence, nonetheless,
does not amount to violation of the aforesaid statutory maximum limit. Further, the mere
fact that the Circular provides penalties on a per cylinder basis does not in itself run
counter to the law since all that B.P. Blg. 33 prescribes are the minimum and the maximum
limits of penalties.
Clearly, it is B.P. Blg. 33, as amended, which de nes what constitute punishable acts
involving petroleum products and which set the minimum and maximum limits for the
corresponding penalties. The Circular merely implements the said law, albeit it is silent on
the maximum pecuniary penalty for re llers, marketers, and dealers. Nothing in the Circular
contravenes the law.
Noteworthy, the enabling laws on which the Circular is based were speci cally
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intended to provide the DOE with increased administrative and penal measures with which
to effectively curtail rampant adulteration and shortselling, as well as other acts involving
petroleum products, which are inimical to public interest. To nullify the Circular in this case
would be to render inutile government efforts to protect the general consuming public
against the nefarious practices of some unscrupulous LPG traders.
WHEREFORE, the petition is GRANTED. The assailed Circular No. 2000-06-010 of
DOE is declared valid. The Decision and Order of the Regional Trial Court of Pasig City,
Branch 161, in SCA Case No. 2318, nullifying said Circular and prohibiting its
implementation are hereby REVERSED and SET ASIDE.
No pronouncement as to costs.
SO ORDERED.
Carpio, Carpio Morales, Tinga and Velasco, Jr., JJ., concur.
Footnotes
1. Rollo, pp. 64-72. Penned by Judge Alicia P. Mariño-Co.
2. Id. at 73-77.
3. 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;
[(f)] (H) Sky-diving, and water-skiing except when methanol is used for the power-boat
operation.
4. 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)] (P20,000) but not more than [Ten] FIFTY thousand pesos [(P10,000)]
(P50,000). . . .
5. Rollo, pp. 274-280.
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6. Batas Pambansa Blg. 33 (1979), Presidential Decree No. 1865 (1983), or Republic Act
No. 8479 (1998).
7. Rollo, p. 72.
8. Id. at 500-502.
9. 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 that acts and activities involving petroleum 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.
11. SEC. 23. Implementing Rules and Regulations. — The DOE, in coordination with the
Board, the DENR, DFA, Department of Labor and Employment (DOLE), Department of
Health (DOH), DOF, DTI, National Economic and Development Authority (NEDA) and
TLRC, shall formulate and issue the necessary implementing rules and regulations
within sixty (60) days after the effectivity of this Act.
12. AN ACT DEREGULATING THE DOWNSTREAM OIL INDUSTRY, AND FOR OTHER
PURPOSES.
13. SEC. 5. Powers and Functions. — The Department shall have the following powers and
functions:
SEC. 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.