THIRTEENTH CONGRESS OF THE REPUBLI 
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OF THE PHILIPPINES 
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First Regular Session 
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s E N / A  T E 
S. No. 
Introduced by Senator S. R. Osmefia 111 
EXPLANATORY NOTE 
The Liquefied Petroleum Gas (LPG) Industry is a key component of the 
Philippine downstream oil industry. LPG is a widely used fuel commodity, and 
accounts 
for 
a 
significant' portion 
of 
total 
Philippine 
oil 
demand. 
The LPG Industry benefits from the liberalization and deregulation of the 
downstream oil industry as such policy attracts new oil companies and makes the 
market conditions more competitive. 
However, a growing concern among 
consumers has developed due to the proliferation of unfair and unsafe trade 
practices among participants a fie r de regula tion. 
This bill seeks to establish a comprehensive framework for the monitoring 
and supervision of the LPG Industry under a deregulated market environment. 
Even under such structure, the Government reserves the right to supervise the 
industry and enforce necessary sanctions to safeguard consumer and worker 
rights, protect the environment, and preserve public welfare. 
The Department of Trade and Industry (DTI) shall be the primary 
government agency for the implementation and enforcement of the bill. An LPG 
Cylinder Monitoring and Inspection Committee is created to monitor compliance 
of industry participants with relevant Philippine standards. 
Among the new powers of the DTI Secretary are Review and revise the 
Philippine National Standards (PNS) for LPG cylinders, Inspect and evaluate 
LPG cylinders, and Issue closure orders for violators. 
To safeguard the public, the bill specifies unlawful acts by industry players 
and the corresponding fines and penalties. Some of these acts are Manufacture, 
sale and distribution of LPG cylinders without necessary Philippine Standard 
License, Re-sizing and alteration of LPG cylinders, and Sale and distribution of 
substandard LPG cylinders. 


A systematic and pragmatic framework is seriously needed in order to 
monitor the LPG Industry ensure fair trade practice, compliance with quality, 
safety and health standards. This bill enjoins accountability and responsibility 
among LPG Industry participants while ensuring that the industry and consumers 
alike could partake of the benefits of deregulation. 
In view of the foregoing, approval of this bill is earnestly requested. 
SERGIO OSMENA 111 
Senator 


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6( 
THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
First Regular Session 
1 
OF THE PHILIPPINES 
1
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E N A T  
Introduced by Senator S. R. OsmeAa 111 
AN ACT 
RATIONALIZING THE MANUFACTURE, REPAIR, REQUALIFICATION, SALE 
AND DISTRIBUTION OF LIQUEFIED PETROLEUM GAS (LPG) CYLINDERS, 
PROVIDING PENALTIES FOR VIOLATION THEREOF AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
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Section. 1. Title - This Act shall be known as the “LPG Cylinder Act of 
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2004”. 
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SEC. 2. Policy and Objectives. - It is the policy of the State to protect the 
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interests of the consumer, protect his general welfare and to establish standards 
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of conduct for business and indystry 
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Towards this end, the State shall: 
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(a) Ensure that appropriate standards will be developed and formulated for 
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the Liquefied Petroleum Gas (LPG) Cylinder Industry through the coordinated 
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efforts of the Department of Trade and Industry (DTI), other government 
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agencies and the private sector; 
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(b) Provide for the penalties and fines for the violation of this Act; 
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(c) Promote awareness and educate all sectors of society regarding the 
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safety requirements for and the proper use of LPG cylinders and ancillary 
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equipment; and 
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(d) Formulate and implement a comprehensive program that shall promote 
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national consciousness to ensure consumer protection. 
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SEC. 3. Definition of Terms. - As use in this Act: 
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(a) “Alteration” refers to any act of converting, transforming or resizing of 
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Inca1 nr irnnnrterl I PG cvlinders frnm its nrinin2l s i 7 ~  2nd renlarrement nr 


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removal of existing and embossed or stamped registered brand owner’s 
markings, including, but not limited to grinding, flattening, application of putty, 
replacement of collar, revalving, unauthorized repainting, replacement of 
footrings, re-labeling, etc., or by any other means. 
(b) “LPG cylinder’’ refers to a container fabricated from steel plates 
consisting of cylindrical shell and two (2) forged ends or pressed ends, which are 
welded on to the shell, or two (2) drawn halves, circumferentially welded together 
to form one (I) 
LPG unit or tank. 
(c) “Imported LPG cylinder” refers to any LPG cylinder of foreign make 
brought into the country for sale and distribution. 
(d) “Registered brand owner” refers to a person, natural or juridical, 
owning the brand name, logo, color, mark and/or distinction as registered with 
the DTI or other appropriate intellectual property rights agencies. 
(e) “Requalification” refers to the method or procedure by which a cylinder 
is inspected and retested to determine its acceptability for continuous service. 
(9 “Repair” refers to the removal and replacement of parts or attachment 
of LPG cylinders and other corrective and restorative measures necessary. 
SEC. 4. Lead Agency. - the DTI shall be the lead agency in the 
implementation of this Act. For this purpose, the DTI Secretary shall have the 
fo I low in g powers: 
(a) Promulgate and implement policies and standards in accordance with 
this Act; 
(b) Review and revise the Philippine National Standards (PNS) for LPG 
cylinders and ancillary equipment; 
(c) Prescribe other penalties and fines for violation of this Act; 
(d) Enter into a Memorandum of Agreement with other government 
agencies, including but not limited, to the Bureau of Customs (BOC) and the 
Department of Energy (DOE) and non-government stakeholders, including the 
LPG industry stakeholders, in order to define areas of cooperation and 
coordination; 


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(e) Establish a scheme that will govern the certification, requalification and 
repair of LPG cylinders; 
(f) Issue closure orders for violators of this Act; 
(9) Exercise visitorial powers over the premises and delivery equipment of 
LPG cylinder manufacturers, retailers, repairers, traders, requalifiers and dealers; 
(h) Inspect and evaluate LPG cylinders, whether local or imported, prior to 
any sale or distribution to LPG refiners or refillers and upon repair or 
requalification, and certify to their conformity to PNS and their fitness for public 
sale and distribution; 
(i) Grant and/or revoke accreditation to requalifiers, repairers and other 
independent and competent private persons and entities that provide services to 
ensure compliance by industry participants with PNS for LPG cylinders; 
(j) Establish the guidelines for the scrapping of used LPG cylinders; 
(k) Require any person, firm, association, partnership or corporation 
engaged in the manufacture, requalification, repair, sale or distribution of LPG 
cylinders to file with the Bureau of Product Standards (PBS) - DJI reports or 
answer in writing to specific queries on such information as may be required from 
them; 
(I) Investigate and compile cases of violation of the PNS and its future 
amendments or the LPG Cylinders Standards and its implementing rules and 
reg u I a t io n s ; 
(m)Confiscate illegally manufactured, repaired, altered and tampered 
cylinders, whether local or imported; and 
(n) Prescribe the necessary rules and regulations consistent with law, for 
the effective implementation of this Act. 
SEC. 5. Unlawful Acts. - The following acts shall be declared unlawful: 
(a) Manufacture, sale and distribution of LPG cylinders to the local market 
without the necessary Philippine Standards (PS) License and other markings as 
required by the PNS and its future amendments, or the detailed standard 
covering LPG cylinder manufacture, requalification and repair; 
(b) Importation of used or second hand LPG cylinders; 


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(c) RE-sizing and alteration of LPG cylinders; 
(d) Repair and requalification of LPG cylinders by persons who are not 
accredited and/or certified by the DTI in accordance with Section 4 of this Act; 
(e) Sale and distribution of LPG cylinders considered substandard as 
defined by the PNS; 
(9 Tampering of existing cylinder markings to convert from one brand to 
another; 
(9) Manufacture and/or sale of cylinderk carrying a brand name, logo, 
mark or distinction without the express approval of the registered brand owner; 
(h) Manufacture of cylinder/s using substandard or non-industrial quality 
steel plates; and 
(i) Wrong or misleading information stamped on the cylinder Le. tare 
weight, etc. 
SEC. 6, Penalfies. - A fine of at least One hundred thousand pesos 
(Php100,000.00) but not more than One million pesos (Phpl,OOO,OOO.OO) and 
imprisonment of at least six (6) years and one (1) day to twelve (12) years shall 
be imposed on any person, firm, partnership or corporation found guilty of 
committing any of the unlawful acts described herein. The fines imposed shall be 
without prejudice to damages sought by the victims. If the violation is committed 
by a corporation, partnership or association, the penalty shall be imposed upon 
the president, manager, partner, and officers responsible. 
SEC. 7. Liability Under the Revised Penal Code. - Prosecution under this 
Act shall be without prejudice to any liability for violation of any provision of the 
Revised Penal Code. 
SEC. 8. LPG Cylinder Moniforing and lnspecfion Commitfee. - The LPG 
Cylinder Monitoring and Inspection Committee is hereby created for the purpose 
of monitoring compliance with the relevant Philippine standards which shall be 
composed of the following: 
(a) One (I) 
representative form the DTI-Bureau of Product Standards; 
(b) One (1) representative each from the DTI regional or provincial offices; 
(c) One (1) representative form the DOE; 


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(a) Conduct periodic and regular LPG cylinder monitoring at all levels 
whether at the manufacturer’s plant, repairers, requalifiers, importer’s 
warehouse or those in circulation in the local market; 
(b) Publish annually in at least one (1) newspaper of general circulation, 
(d) One (1) representative form the Bureau of Fire Protection; and 
(e) Two (2) representatives form the LPG industry nominated by the 
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SEC. I O .  LPG Cylinder Development Program. - The DTI shall undertake 
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research, standardization, promotion, market monitoring, certification, testing, 
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accreditation and enforcement program to ensure the protection of consumer 
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interest and public welfare. 
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SEC. 11. lmplernenting Rules and Regulations. - The DTI, in coordination 
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with the BOC, DOE, and other appropriate agencies, and in consultation with 
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LPG industry stakeholders, shall formulate and promulgate the necessary 
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implementing rules and regulations within one hundred twenty (120) days from 
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the effectivity of this Act. 
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SEC. 12. Repealing Clause. - All laws, decrees, orders, rules and 
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regulations, or any part thereof which are inconsistent herewith, are hereby 
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repealed or amended accordingly. 
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SEC. 13. Separabilify Clause. - Should any provision of this Act be 
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subsequently declared unconstitutional, the other provisions not so declared shall 
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remain in full force and effect. 
SEC. -l4. Effectivity Clause. - This Act shall take effect fifteen (15) days 
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after its publication in the Official Gazette or at least two (2) newspapers of 
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national circulation. 
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Approved,