TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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SENATE 
S. B. No. 62
of f!jr te".. i
25 JUL-3 P3 37
RtCEIVtD 8V.
Introduced by Senator Rodante D. Marcoleta
AN ACT
PROTECTING FILIPINO CONSUMERS FROM ARBITRARY PRICE INCREASES OF 
LIQUIFIED PETROLEUM GAS, AMENDING FOR THE PURPOSE SECTIONS 14 
AND 19 OF REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE 
"DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998"
EXPLANATORY NOTE
Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 
has allowed market forces to determine the price of gasoline and other oil products, 
including liquified petroleum gas (LPG). Data from the Department of Energy (DOE) 
shows that there are "more than 45,000 LPG dealers across the country, representing 
more than 30 LPG brands". Moreover, the latest data from their price monitoring reveals 
that the price of a standard 11-kg household LPG in the National Capital Region ranges 
from PHP 830 - lllO.1
Even as the law mandated the Department of Energy (DOE) to monitor the 
international and domestic prices of crude and petroleum products, the pricing is left with 
the LPG industry, including their dealers and retail outlets, to set.
While the DOE may have been successful in persuading most companies to 
implement price adjustments of liquid petroleum products in small increments, the 
situation remains uncertain with the LPG industry. Some players have been noted to
Department of Energy. "Price Monitoring of 11 KG Household LPG and Auto-LPG". Accessed from; 
https://legacy.doe.gov.ph/sites/default/files/pdf/price_watch/NCR-%203une%202025%20LPG%20Price%20Monitoring.pdf


implement the full impact of increases in the benchmark monthly contract price (CP) in 
Saudi Arabia at the beginning of the month, but only smaller increments are implemented 
during times of downward CP movements.
Although domestic prices are dependent on the price in the international market 
and the peso exchange rate, mechanisms may have to be put in place to protect the 
welfare of the consumers from abuse by unscrupulous local LPG industry players.
This measure aims to provide an automatic pricing mechanism to ensure 
reasonable, transparent and timely adjustment on the LPG prices.
In view of the foregoing, the immediate passage of this bill is earnestly sought.
ROD^TE D. MARCOLETA


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TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
SENATE
62
NDEX
BILL*
S. B. No.
Introduced by Senator Rodante D. Marcoleta
AN ACT
PROTECTING FILIPINO CONSUMERS FROM ARBITRARY PRICE INCREASES OF 
LIQUIFIED PETROLEUM GAS, AMENDING FOR THE PURPOSE SECTIONS 14 
AND 19 OF REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE 
"DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998"
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
Section 1. Section 14 of Republic Act No. 8479 is hereby amended to read as
follows:
XXX
(d) Any report from any person of an unreasonable rise in the prices of petroleum 
products shall be immediately acted upon. For this purpose, the [creation of the 
DOE- DOJ Task Force] ENERGY REGULATORY COMMISSION (ERC) is hereby 
mandated to determine within thirty (30) days the merits of the report and initiate 
the necessary actions warranted under the circumstance: Provided, That nothing 
herein shall prevent the said task force from investigating and/or filing the 
necessary complaint with the proper court or agency \_moto propio] MOW 
PROPRIO. 
xxx"
Sec 2. Section 19 of Republic Act No. 8479 is hereby amended to read as follows: 
"Section 19. Start of Full Deregulation, - xxx


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PROVIDED FURTHER, THAT IMMEDIATELY, THE PRICE OF LPG HAS TO
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BE GUIDED BY AN AUTOMATIC PRICING MECHANISM (APM) WHICH
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SHALL BE DETERMINED BY THE ERC, AFTER PRIOR NOTICE AND
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HEARING, WITHIN SIX (6) MONTHS FROM THE EFFECTIVITY OF THIS
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ACT. MOREOVER, THE APM SHALL PROVIDE FOR CYLINDER REPAIR AND
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MAINTENANCE COST IN ORDER TO ENSURE THAT ONLY SAFE AND
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QUALIFIED LPG CYLINDERS ARE PUT IN CIRCULATION."
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Sec. 3. Implementing Rules and Regulations - Within sixty (60) days after the
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effectivity of this Act, The ERC shall, in coordination with the Department of Energy,
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Department of Trade and Industry and other concerned government agencies,
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promulgate the rules and regulations to effectively implement the provisions of this Act.
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Sec. 4. Separability Clause. - If any provision or part of this Act is declared invalid
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or unconstitutional, the remaining parts not affected shall remain in full force and effect.
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Sec. 5. Repealing Clause. - All laws, presidential decrees, executive orders, letters
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of instructions, proclamations or administrative regulations that are inconsistent with the
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provisions of this Act are hereby repealed, amended, or modified accordingly.
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Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication
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in the Official Gazette or in a newspaper of general circulation.
Approved,