THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
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5 MAY -4 
P3 :28 
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S E N A T E  
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".I.". 
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INTRODUCED BY THE HONORABLE MAR ROXAS 
1 
EXPLANATORY NOTE 
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This bill seeks to establish the monitoring and supervisory/ framework for the Liquefied 
Petroleum Gas (LPG) industry in order to strengthen and d a n c e  existing standards and 
mechanisms against deceptive and harmful practices and other hazards to public health and 
safety arising under a deregulated downstream oil industry structure'. 
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The LPG is a widely used fuel commodity in the Philippines, accounting for a significant 
portion of the country's total oil demand. Since Filipino houseliolds commonly use LPG for 
cooking, the safety of LPG use is a concern shared by most conshers. In the last three years, 
more than 3,000 fire incidents nationwide, leading to loss of lives &d properties, were attributed 
to improper or indiscriminate handling of LPG. Around four million dilapidated LPG cylinders 
are reportedly circulating in Metro Manila alone. 
In 2001, the Department of Trade and Industry (DTI), togbther with the Department of 
Energy (DOE), the Department of Interior and Local Government !(DILG), and the Philippine 
Liquefied Petroleum Gas Association (PLPGA), launched a wide-ranging campaign to protect 
consumers from the proliferation of sub-standard and defective steel LPG cylinders. One of the 
key actions undertaken in this campaign was a three-month:long preventive recall and 
replacement initiative known as "Sauli-Palit." 
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During the course of its spot inspections, it was discovered by the DTI Bureau of Product 
Standards (DTI-BPS), that random samples of 11 kilogram LPG cylinders manufactured by the 
Laguna-based company Pilipinas Daecheng Steel' Incorporated (PDSI) did not conform with 
Philippine Standard quality and safety parameters. Through "Sauli-Palit," DTI sought to recall 
and re-qualify the 44,000 1 I-kilogram LPG cylinders manufactured (between December 2000 to 
April 2001) and distributed by PDSI and the destruction and replaciment of defective tanks. 
The DTI-led campaign promoted vigilance in the extensive crackdown on substandard 
LPG cylinders. 
New and comprehensive legislation is still deeded, however, to sustain, 
institutionalize and upgrade LPG industry standards and to establish the supervisory fiarnework 
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for the industry's monitoring system. 
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The proposed act will give additional powers and functions to the DOE, as the lead 
agency, as well as the DTI, DILG and local governments, to enable organized and coordinated 
efforts in the monitoring and inspection of the participants of the lLPG industry to ensure their 
compliance with national product quality and environmental, worker safety and consumer 
welfare standards. 
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In view of the foregoing, approval of this biil is earnestly requested. 


THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
, 
I 
SENATE 
1995 
S. B. No. 
5 MAY -4 P328 
~ 
INTRODUCED BY THE HONORABLE MAR ROXAS 
AN ACT 
TO ESTABLISH THE MONITORING AND SUPERVISORY FRAMEWORK FOR THE 
POWERS TO THE DEPARTMENT OF ENERGY, DEFINE AND PENALIZE CERTAIN 
LIQUEFIED PETROLEUM GAS FPG) INDUSTRY, PR~VIDE 
ADDITIONAL 
- 
ACTS 
Be it enacted bv the Senate and the House of Representatives of the Philippines in 
Coaaress assembled: 
ARTICLE I 
GENERAL PROVISIONS 
SEC. 1. 
SEC. 2. 
Short Title. -This Act shall be known as the “LPG Industry Act of 2005.” 
Declaration of Policy. - It shall be the policy of the State to establish a 
monitoring and supervisory framework for the refining, importation, refilling, requalification, 
distribution and marketing processes of the Liquefied Petroleum Gas (hereafter referred to as 
“LPG) industry to promote the general welfare, encourage the establishment of standards of 
conduct and codes of practice for LPG businesses, and address the quality and safety concerns 
under a deregulated downstream oil industry structure. Consequently, the State shall rationalize 
all applicable laws and executive issuances on the LPG industry to strengthen and enhance 
existing mechanisms against hazards to health and safety, and deceptive and unconscionable 
trade acts and practices within the industry. To this end, the State shall undertake the 
implementation o f  this Act primarily through the Department of Energy, in coordination with the 
Department of Trade and Industry, the Department of Justice, thk Department of Interior and 
Local Government, and other appropriate government agencies and instrumentalities. 
SEC. 3. Definition of Terms. - For the purposes of this Act, the following terms are 
herein below defined: 
(a) “DENR” shall refer to the Department of Environment and Natural Resources; 
(b) ‘IDZLC”shal1 refer to the Department of Interior and L&al Government; 
(c) “DOE” shall refer to the Department of Energy; 
(d) “DOST” shall refer to the Department of Science and Technology; 
(e) “DTZ” shall refer to the Department of Trade and Industry; 
(9 “LGU” and “LGUs” shall refer to a local government unit or local government units, 
respectively; 
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(9) “PNP” shall refer to the Philippine National Police; 
(h) “SEC” shall refer to the Securities and Exchange Commission; 
(i) “Accreditation” shall refer to the formal recognition given by DTI that a requalifier 
of LPG cylinders has complied with PNS 17025:2000, “General Requirements for the 
Competence of Testing and Calibration Laboratories,” and PNS 03:2000, “Steel Cylinders for 
Liquefied Petroleum Gas,” Part 2 -“Method of Requalification;” 
(i) “Ancillary Equipment” shall refer to such equipment, parts, and other devices 
necessary and indispensable for the safe and proper operation of an LPG system such as, but not 
limited to, valves, hoses, and regulators; 
(k) “Busel Convenfion” shall refer to the international accord, which governs the trade or 
movement of hazardous and toxic waste across borders, the “Base1 Convention on the Control of 
Trans-boundary Movements of Hazardous Wastes and their Disposal adopted by the Conference 
of Plenipotentiaries” on 22 March 1989; 
(1) “Brand Owner” shall refer to a person, natural or juridical, owning the brand, name, 
logo, color, mark, and/or distinction as registered with the DTI; 
(m)‘‘BuNC Consumer’’ shall refer to any person or entity whose regular use or 
consumption of LPG requires bulk storage of LPG; 
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(n) “Bulk Loader” shall refer to any person or entity, which engages in transportation 
* and carriage of LPG in large quantities in barges, rail or road tankers, bullet trucks and similar 
transportation facilities; 
(0) “Bulk Supplier” shall refer to any person who engages in the sale or distribution of 
LPG in such large quantities. 
(p) “Certijlcafion” shall refer to the written assurance given by DTI that the LPG 
cylinder has complied with PNS 03:2000, “Steel Cylinders for Liquefied Petroleum Gas”, Part 1 
-“Specification” and Part 3 -“Requirement for Repair;” 
(q) “Consumer” shall refer to any person who purchases LPG for one’s own 
consumption; 
(r) “Cross Filling” shall refer to the filling of cylinders by a person other than by the 
brand owner; 
(s) “Cylinder” or “LPG Cylinder” shall refer to any portable pressure-vessel or 
container for LPG, designed for the transportation and storage of LPG; 
(t) “Cylinder Industry Participants” shall refer to persons or entities engaged in 
activities or businesses related to the manufacture, importation, transportation, sale and 
distribution of LPG cylinders and ancillary equipment, including but not limited to, cylinder and 
ancillary equipment manufacturers and importers, requalifiers, repairers, scrapping centers, 
cylinder seal manufacturers and such other; 
(u) “Cylinder Owner” shall refer to the owner of the cylinder as shown by the brand, 
mark, trade name or business name embossed or engraved or otherwise permanently indicated OR 
the cylinder in the manner prescribed by the DTI and the DOE; 
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(f) ‘ZGU” and “LGUs” shall refer to a local government unit or local government units, 
respectively; 
(8) “PNP” shall refer to the Philippine National Police; 
(h) “SEC” shall refer to the Securities and Exchange Commission; 
(i) ”Accreditation” shall refer to the formal recognition given by DTI that a requalifier 
of LPG cylinders has complied with PNS 17025:2000, “General Requirements for the 
Competence of Testing and Calibration Laboratories,” and PNS 03:2000, “Steel Cylinders for 
Liquefied Petroleum Gas,” P& 2 - “Method of Requalification;” 
(i) “Ancillary Equipment” shall refer to such equipment, parts, and other devices 
necessary and indispensable for the safe and proper operation of an LPG system such as, but not 
limited to, valves, hoses, and regulators; 
(k) “Basel Convention” shall refer to the international accord, which governs the trade or 
movement of hazardous and toxic waste across borders, the “Basel Convention on the Control of 
Trans-boundary Movements of Hazardous Wastes and their Disposal adopted by the Conference 
of Plenipotentiaries” on 22 March 1989; 
(1) “Brand Owner” shall refer to a person, natural or juridical, owning the brand, name, 
logo, color, mark, and/or distinction as registered with the DTI; 
(m)“Bulk Consumer” shall refer to any person or entity whose regular use or 
consumption of LPG requires bulk storage of LPG; 
(n) “Bulk Loader” shall refer to any person or entity, which engages in transportation 
and carriage of LPG in large quantities in barges, rail or road tankers, bullet trucks and similar 
transportation facilities; 
(0) “Bulk Supplier” shall refer to any person who engages in the sale or distribution of 
- LPG in such large quantities. 
(p) “CertzfTcation” shall refer to the written assurance given by DTI that the LPG 
cylinder has complied with PNS 03:2000, “Steel Cylinders for Liquefied Petroleum Gas”, Part 1 
-“Specification” and Part 3 -“Requirement for Repair;” 
(4) “Consumer” shall refer to any person who purchases LPG for one’s own 
consumption; 
(r) “Cross Filling” shall refer to the filling of cylinders by a person other than by the 
brand owner; 
(s) “Cylinder” or “LPG Cylinder” shall refer to any portable pressure-vessel or 
container for LPG, designed for the transportation and storage of LPG; 
(t) “Cylinder Industry Participants” shall refer to persons or entities engaged in 
activities or businesses related to the manufacture, importation, transportation, sale and 
distribution of LPG cylinders and ancillary equipment, including but not limited to, cylinder and 
ancillary equipment manufacturers and importers, requalifiers, repairers, scrapping centers, 
cylinder seal manufacturers and such other; 
(u) “Cylinder Owner” shall refer to the owner of the cylinder as shown by the brand, 
mark, trade name or business name embossed or engraved or otherwise permanently indicated on 
the cylinder in the manner prescribed by the DTI and the DOE; 
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(v) “Cylinder Swapping” shall refer to the industry practice of exchanging LPG 
cylinders; 
(w) “Defective cylinder” shall refer to damaged, unsafe and dilapidated cylinders due to 
corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar defects that render 
the cylinder unsafe for distribution in accordance with the guidelines set by the DTI, thus 
creating a substantial risk of injury to the public; 
(x) “Dealer” shall refer to any person involved in the sale or trading of LPG in cylinders 
to consumers and/or retail outlets; 
(y) “Hauler” shall refer to any person involved in the distribution and delivery of LPG in 
cylinders from one place to another, whether engaged in such activity for purposes of directly 
selling to consumers or otherwise; 
(z) “Zmporter” shall refer to any person engaged in the importation of LPG whether for 
processing, sale or own use; 
(aa) 
“Industry Participants” shall refer to persons or entities engaged in activities or 
businesses related to the manufacture, importation, transportation, sale and distribution of LPG, 
such as CyIinder Industry Participants and LPG Industry Participants as defined in this Act; 
(bb) 
“LPG” shall refer to liquefied petroleum gas, which consists of commercial 
propane gas or commercial butane gas or a mixture of the two gases, with properties conforming 
to the standards set forth in the PNS 22; 
(cc) 
“LPG Industry Participants” shall refer to persons or entities engaged in 
activities or businesses related to the manufacture, importation, transportation, sale and 
distribution of LPG, including but not limited to LPG refiners, LPG importers, refillers; piped 
LPG providers, haulers, dealers, service stations, retail outlets and seal manufacturers; 
(dd) 
“Marketer” shall refer to any person, whether natural or juridical, engaged in the 
sale of LPG, whether in bulk or retail; 
(ee) 
“Petroleumproducts” shall refer to the products formed in the course of refining 
crude petroleum through distillation, cracking, solvent refining and chemical treatment coming 
out as primary stocks from the refinery such as but not limited to LPG, naphtha, gasoline, 
solvent, kerosene, aviation fuels, oils, waxes and petrolatum, asphalts, bitumen, coke and 
refinely sludge, or such refinery petroleum fractions which have not undergone any process or 
treatment as to produce separate chemically-defined compounds in a pure or commercially pure 
state and to which various substances may have been added to render them suitable for particular 
uses, provided that the resultant product contains not less than fifty percent (50%) by weight of 
such petroleum products; 
(ff) “Philippine National Standards” or “PNS” shall refer to the standard promulgated 
by the Bureau of Product Standards (BPS) of the DTI relating to product specifications, test 
methods, terminologies and standardization procedures, guidelines or practices; 
(gg) 
“Piped LPG Provider” shall refer to any person engaged in the business of 
supplying or distributing LPG to consumers through a pipeline system, including operators of 
central storage compounds for piped LPG or reticulated system facilities; 
(hh) “Pipeline System” shall refer to a network of pipes or similar conduits used for 
the conveyance of LPG from the piped LPG provider to consumers; 
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(ii) “Primauy Storage Facilities” shall refer to the plant, depot, equipment and other 
attendant facilities, such as underground caverns, refrigerated tanks, and pressurized steel tanks, 
used for storage of LPG; 
(ij) “Quulifid LPC Serviceman” shall refer to an individual who has been trained, 
qualified and certified by the DOE or any deputized agency thereof, or to an individual who has 
successfully completed an approved training course for LPG servicemen in a training school 
duly recognized and accredited by the Philippine government; 
(kk) “Refller” shall refer to (1) a service provider authorized by a cylinder owner to 
refill cylinders on the latter’s behalf; or (2) any person or entity who refills LPG into one’s own 
cylinders; 
(11) “Refilling Plant” shall refer to any installation that is used for refilling LPG into 
cylinders and has LPG bulk storage and refilling facilities therefore; 
(mm) “‘Refiner” shall refer to any person who refines LPG through distillation, 
conversion and treatment of crude oil and other naturally occurring petroleum hydrocarbons; 
(nn) 
“Reqnalc~cation” shall refer to the method or procedure by which a cylinder is 
subjected to inspection and reevaluation by DTI in accordance with the specifications set forth in 
the PNS 03-2000, “Steel Cylinders for Liquefied Petroleum Gas,” Part 2 - “Method of 
Requalification to determine its acceptability for continuous use and distribution and subsequent 
repair or scrappage, where appropriate;” 
(00) “Requalifer” shall refer to any person duly accredited by the DTI pursuant to 
this Act to engage in the business of requalifying LPG cylinders; 
(pp) 
“Repair” shall refer to the removal and replacement of parts or attachments of 
LPG cylinders or the performance of any other necessary corrective measures to restore the 
fitness of LPG cylinders for refilling and distribution; 
(qq) 
“Repairer” shall refer to any person or entity duly certified by the DTI to engage 
in the business of repairing LPG cylinders; 
(rr) “Retail Outlet” shall refer to any entity that sells LPG cylinders directly to a 
consumer in quantities as may be determined by the DOE; 
(ss)“Reficulizfed System” shall refer to a means of supplying LPG through a pipeline 
network from a centralized cylinder bank or bulk installation to multiple customers situated in a 
common locality;” 
(tt) “Scrappage” shall refer to the destruction of defective LPG cylinders declared by a 
requalifier or the DTI to be unfit for use; 
(uu) 
“Scrapping Center” shall refer to any person or entity engaged in the business of 
disposing defective LPG cylinders; 
(vv) 
“Seal” shall refer to the protective cover placed on the valve of an LPG cylinder; 
(ww) “Service Station” shall refer to a retail establishment engaged in the business of 
selling lpg in cylinders as a retail outlet and in distributing and dispensing of LPG to consumers 
for automotive use. It shall be deemed a dealer or retail outlet for purposes of this Act; 
(xx) 
“Tare weight” shall refer to the net weight of the LPG cylinder excluding its 
contents, as engraved in the collar and painted in the body thereof and shall be expressed in 
kilograms in accordance with the specifications as may be prescribed by the DTI. 
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ARTICLE I1 
IMPLEMENTING AGENCIES 
SEC. 4. Lead Agency. - The DOE shall be the primary government agency 
responsible for the implementation and enforcement of this Act. The DOE shall supervise and 
monitor the LPG industry and its participants to ensure compliance with national product quality, 
environmental and worker safety, and consumer welfare standards. 
SEC. 5. Additional Powers and Functions of the DOE Secretary. - In connection 
with the enforcement of this act and in addition to hisher powers and functions under existing 
laws, the DOE Secretary shall have the following powers and functions: 
(a) Administer and supervise the enforcement and implementation of this Act, including 
the promulgation of Implementing Rules and Regulations, and issuance, from time to time, of 
other regulations, orders or circulars necessary to implement this Act; 
(b) Formulate and implement policies, programs and regulations on the LPG industry, 
including the importation, exportation, stockpiling, storage, shipping, transportation, refining, 
processing, marketing and distribution of LPG, whether distributed in cylinders, through 
pipelines or other means, to ensure that product quality, environmental and worker safety, and 
consumer welfare standards are met; 
(c) Inspect and evaluate LPG and LPG cylinders in circulation, at any time fiorn and 
after its purchase by a refiner, marketer, or refiller, and while it is in circulation or intended for 
distribution to the public, for purposes of determining conformity to established quality and 
safety standards for LPG cylinders developed and established by the Bureau of Product 
Standards (BPS); 
(d) Establish safety standards for refilling plants, depots, storage areas, transportation and 
other facilities of LPG industry players and inspect and evaluate refilling plants, depots, storage 
areas, transportation and other facilities or business premises of LPG Industry Participants to 
ensure compliance to safety standards; 
(e) Direct LPG brand owners, refillers, dealers and retail outlets to periodically submit 
cylinders for requalification, and to secure proper proof of compliance therewith in accordance 
with the requirements of DTI; 
(0 Investigate, motupropio or upon report of any person, possible infractions of this Act 
by industry participants, and initiate the necessary actions warranted under the circumstances, 
including the recall, prohibition, forfeiture or seizure of substandard LPG and LPG cylinders as 
well as illegally filled LPG cylinders as defined in Article VI of this Act, the filing of charges 
with the proper court or government agency, and the enforcement of administrative sanctions as 
provided under this Act; 
(g) Recommend to the concerned LGUs the suspension or revocation of the business 
permits or licenses of LPG industry participants who violate the provisions of this Act; 
(h) Issue Standards Compliance Certificates to LPG industry participants in accordance 
with Article 111 of this Act, and to revoke the same; 
(i) Impose and collect administrative fines for violation of this Code, as well as fees or 
similar charges for its services, including the processing of applications for Standards 
Compliance Certificate and collection of administrative fines for violations of this Act; 
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(i) Create and maintain a central database of industry participants, and an inventory of 
existing and projected LPG supply levels in the industry, which shall be updated monthly 
through its own initiative and through reports of LPG industry participants; 
(k) Investigate and keep a record of incidents of injury or damage to person or property, 
caused by or attributable to the improper production, storage, handling or use of LPG for 
purposes of prosecuting or filing the appropriate action against responsible persons; 
(1) Establish and develop research and training programs to develop new uses for LPG, 
promote improved and innovative methods and technologies for safe and efficient production, 
storage, handling or use of LPG, and to foster public awareness thereof; 
(m)Consult and coordinate, on a regular basis, with LPG industry participants, 
associations and consumers in furtherance of the objectives of this Act; 
(n) Coordinate with other government agencies, bodies and instrumentalities to ensure 
the effective implementation of this Act; 
(0) Exercise such other powers and functions as may be necessary or incidental to 
attaining the objectives of this Act; and 
@) Investigate, prosecute, and impose penalties for dumping activities or unauthorized 
filling of bulk tanks installed in industrial LPG consumers by bulk suppliers other than the owner 
of the tanks. 
SEC. 6. Powers and Functions of DTI. - Under this Act, the DTI shall have the 
following exclusive powers and functions: 
(a) Develop, formulate, promulgate, review and revise the PNS for LPG, LPG cylinders, 
and other ancillary equipment; 
(b) Inspect and evaluate LPG cylinders, whether manufactured locally 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; 
(b) Inspect and evaluate ancillary equipment, whether manufactured locally or imported 
and certify to their conformity to PNS and their fitness for public sale and distribution; 
(c) Grant accreditation and certification to requalifiers, repairers, scrapping centers, 
cylinder and seal manufacturers and other independent, competent, private persons, and entities 
that provide products and services to ensure compliance by industry participants with the PNS 
for LPG cylinders and ancillary equipment, in accordance with Article 111 of this Act, and to 
revoke the same; and 
(d) Extend all necessary assistance to the DOE in the implementation of measures in 
furtherance of the objectives of this Act. 
SEC. 7. Powers and Functions of DILG. - Under this Act, the DILG shall have the 
following powers and functions: 
(a) Coordinate with LGUs and the PNP for the orderly and effective implementation of 
this Act, and of the orders, rules, regulations and issuances pursuant thereto, including 
recommendations for the suspension or revocation of business permits or licenses of LPG 
industry participants found to be in violation of this Act; 
0) Coordinate with the DOE and the DTI in the dissemination of information relevant to 
the implementation o f  this Act, particularly to the LGUs and the PNP; and 
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(c) Extend all necessary assistance to the DOE with respect to the enforcement of 
measures in furtherance of this Act. 
SEC. 8. Powers and Functions of LGUs. - LGUs, on their own initiative or upon 
recommendation of the DOE and upon due notice and hearing, shall have the power to suspend 
or revoke the business permit or license of any LPG industry participant within their respective 
areas of jurisdiction for violation of the provisions of this Act: Provided, That upon notice by 
the DOE of revocation of the Standards Compliance Certificate of an LPG industry participant 
issued by the DOE under Article 111 of this Act, the LGU shall immediately revoke the business 
permit or license of said LPG industry participant. 
SEC. 9. Technical Working Group. - The DOE shall be authorized to convene a 
Technical Working Group to assist the DOE, through review and recommendation of rules and 
regulations, policies, safety standards and PNS affecting the LPG industry. The Technical 
Working Group shall be composed of representatives of the implementing agencies and industry 
participants. Industry representation in the Technical Working Group shall be determined 
through consultation among the industry participants. 
ARTICLE I11 
MONITORING AND ENFORCEMENT MECHANISMS 
SEC. 10. Undertaking to Comply with Requirements. - Any person or entity who 
intends to engage in any business or activity which shall render it an industry participant as 
defined in this Act, shall undertake to comply with the requirements of this Act, its implementing 
rules and regulations, and such other issuances of the DOE, under a verified instrument to be 
executed in such form as required by the DOE or the DTI, as the case may be. 
Due filing of the verified undertaking shall be a condition precedent for the issuance of 
the Standards Compliance Certificate required under this Act: Provided, That submission of such 
undertaking does not exempt such person or entity from securing any other certification of 
quality, health, safety, security, or environmental clearance from the proper governmental 
agencies or instrumentalities. 
Any person or entity intending to import or export LPG or LPG cylinders shall, in 
addition to the requirement for a verified undertaking, furnish a report to the DOE prior to his or 
its every importation or exportation: Provided, That all LPG and LPG cylinder importations 
shall be in accordance with the Base1 Convention. 
SEC. 11. Reports and Disclosures to DOE or DTI. - The DOE or the DTI, as the case 
may be, shall have the power and authority to require industry participants to submit written, 
electronic or other form of reports or disclosures, as they may deem reasonable and necessary to 
perform their functions under this Act. Any industry participant who fails to submit any such 
report or disclosure within the period and in the manner prescribed by the DOE or the DTI shall 
be penalized under this Act. 
SEC. 12. Central Database of Industry barticipants. - The central database of LPG 
industry participants shall include their corporatj or business name or trade name; principal 
office or business address; primary purpose or nature of business; registered brand name or logo 
for LPG, LPG cylinder, facilities and equipment; daulers, dealers, retail outlets and cylinder seal 
manufacturers; amount and status of performahce bond, where required under this Act; 
violations committed or incidents relating to suLh violations, if any; agreements with other 
industry participants, such as for cross-fiIling and similar arrangements; list of lost, stolen or 
missing LPG cylinders; and such other relevant information as may be determined by the DOE 
or the DTI, as the case may be. 


The central database shall be created jointly by the DOE and the DTI within one (1) year 
from the effectivity of this Act. This central database shall be updated on a monthly basis and 
shall be made available to the public and through the Internet. 
SEC. 13. Standards Compliance Certificate. - 
(a) Requirement Prior to Engaging in Business. - Any person or entity intending to 
engage in business involving LPG, LPG cylinders or ancillary equipment or in any activity that 
shall render it an industry participant as defined in this Act shall secure its Standards Compliance 
Certificate from the DOE or the DTI, as the case may be, prior to commencement of commercial 
operations and annually thereafter. 
For purposes of this Act, the Standards Compliance Certificate shall certify that such 
person or entity has complied with the safety rules and regulations prescribed by the DOE or the 
DTI applicable to the particular classification of industry participant defined by this Act: 
Provided, That, a brand owner shall be responsible for the: 
1) proper manufacture, maintenance, and requalification of all its cylinders prior to the 
release thereof to the public, in accordance with this act; 
2) proper filling of cylinders; 
3) assurance that LPG is readily available at his refilling plant/s for refilling into his own 
cylinders; and 
4) refilling of his own cylinders, unless authorized by another brand owner. 
No industry participant shall engage in business without first having duly secured a 
Standards Compliance Certificate. Any industry participant that subsequently engages in an 
activity or business involving LPG or LPG cylinders outside of the scope of its Standards 
Compliance Certificate shall duly notify the DOE or the DTI, as the case may be, and secure the 
proper Standards Compliance Certificate for the said new activity or business, where deemed 
necessary by the DOE or the DTI, as the case may be. 
The DOE shall prescribe specific guidelines for compliance of retail outlets, dealers and 
haulers in remote areas outside Metro Manila, in which case the verified undertaking required 
under this Article may be submitted through registered mail, without prejudice to the conduct of 
a standards compliance inspection. 
(b) Persons or Entities Already Engaged in LPG Business. - Subject to the 
provisions of Section 63 of this Act, any industry participant already legally engaged in business 
upon effectivity of this Act shall obtain a Standards Compliance Certificate prior to the renewal of 
its business license and annually thereafter, in accordance with the rules, regulations, and 
guidelines issued by the DOE or the DTI, as the case may be. 
(c) Bulk Consumers. - A bulk consumer shall be required to secure a Standards 
Compliance Certificate from the DOE prior to its storage of LPG, and annually thereafter prior to 
its renewal of business permit: Provided, That if the bulk consumer has secured a similar 
certificate from the Department of Labor and Employment (DOLE) and the Bureau of Fire 
Protection (BFP), such certificate from these agencies shall be deemed substantive compliance 
under this act. 
(d) Rewired Submissions for Standards Comuliance Certificate. - A Standards 
Compliance Certificate shall only be issued upon a satisfactory finding of the applicant’s 
compliance with the provisions of this Act and submission of requirements, which may include 
the following, where applicable: 
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1) Certification of compliance of applicant’s faciIities with fire safety laws and 
regulations from the Bureau of Fire Protection (BFP); 
2) Environmental Compliance Certificate (ECC) from the DENR; 
3) Product liability insurance certificate from an insurer duly registered with and licensed 
by the Insurance Commission; 
4) Permits on suitability, safety and soundness of plant and facilities for the proposed or 
existing operation; 
5) Compliance with the provisions of Presidential Decree No. 11 85, otherwise known as 
the Fire Code ofthe Philippines and/or pamphlet 58 of the National Fire Protection Association 
(NFPA 58), otherwise known as the “Liquefied Petroleum Gas Code”; and 
6 )  Such other documents or requirements as the DOE or the DTI may prescribe as 
necessary for the effective implementation of this Act. 
(e) Renewal and Posting of Standards Compliance Certificate. - The Standards 
Compliance Certificate shall be renewed annually and shall be prominently posted or displayed 
in a public, accessible and conspicuous area within the business premises of the industry 
participant. 
SEC. 14. Certificate of Accreditation for Manufacturers, Requaliflers, Repairers of 
LPG Cylinders and Cylinder Seal Mapufacturers - Prior to the commencement of its 
operations and annually thereafter, any person who intends to engage in the business of 
manufacturing, requalifying, or repairing LPG cylinders, shall obtain a Certificate of 
Accreditation from the DTI prior to the commencement of its operations and annually thereafter. 
Any person already engaged in the business of requalification, repair, scrappage or 
cylinder and seal manufacturing upon the effectivity of this Act shall apply for a Certificate of 
Accreditation from the DTI prior to the renewal of its business permit. 
- 
SEC. 15. Monitoring and Standards Compliance Inspection. - 
(a) Monitoring of Facilities and Equipment. - The DOE shall monitor the refining, 
importation and distribution of LPG and conduct annual inspections of refinery, storage, hauling, 
transportation, refilling, or installation facilities and equipment to ensure that clean, 
environmentally-safe and worker-benign technologies are applied, and to ensure conformity with 
quality and safety standards and other mandatory requirements under this Act. 
(b) Standards Compliance Inspection. - The DOE shall not issue a Standards 
Compliance Certificate unless it is shown, upon proper conduct of standards compliance 
inspection, that the industry participant has complied with this Act and such other rules and 
regulations as may be prescribed by the DOE. 
(c) Frecluencv of Standards Compliance Inspection. - The DOE may, mutu propiu or 
upon a verified statement or complaint by any person, conduct regular or random inspections of 
the refinery, storage, hauling, transportation or installation facilities and equipment of industry 
participants as it may deem reasonable and necessary to implement the purposes of this Act. 
(d) Conduct of Standards Comdiance Inspection. - The DOE shall prescribe guidelines 
for the proper conduct of the standards compliance inspection, including but not limited to the 
scope of the relevant premises and records as may be subject to inspection. 
10 


SEC. 16. Requirement for Business Permit. . - The Standards Compliance Certificate 
- provided under Section 13 of this Act shall be a mandatory requirement for the grant or renewal 
of any local government license or permit to engage in business involving LPG, LPG cylinders, 
or ancillary equipment, regardless of whether such products or activities constitute the entire or a 
portion of the business for which a business license is sought by the applicant. 
SEC. 17. Performance Bond. - 
(a) Performance Bond Required. - A performance bond shall be required of all LPG 
refiners, importers and other bulk suppliers; cylinder manufacturers, repairers and requalifiers; 
cylinder importers, refillers, bulk loaders, haulers, piped gas providers, and cylinder seal 
manufacturers, and other LPG industry players, depending on the type of business to be 
established prior to engaging in such business and as a condition precedent to the grant of a 
Standards Compliance Certificate by the DOE or the DTI, as the case may be: Provided, That on 
the first year of implementation of this Act, such bond shall be posted not later than six (6) 
months from effectivity of this Act. 
The performance bond shall answer for such administrative fines as may be imposed for 
violations of this Act. 
(b) Amount of Bond. - Within sixty (60) days from effectivity of this Act, the DOE 
shall, in consultation with the DTI and the industry participants, prescribe the schedule of 
amounts required for performance bond, which shall be reviewed and adjusted every two (2) 
years: Provided, That the DOE shall have the authority to increase or decrease the required 
amounts for the performance bond, upon prior consultation with the DTI and the industry 
participants and other concerned sectors. 
(c) Maintenance of Bond. - The performance bond shall be maintained at the required 
amount and shall be fully replenished within thirty (30) days from any charge or liability 
deducted therefrom, as well as on the close of business hours on the thirty-first of December of 
every year. Failure to maintain or replenish the bond accordingly shall be a ground for 
revocation of the Standards Compliance Certificate and business license or permit. 
(d) Publication of Non-Bonded LPG Businesses. - The DOE or the DTI, as the case 
may be, shall publish a list of non-bonded LPG businesses in a newspaper of general circulation 
and in such frequency as it may deem necessary, to disseminate to the public that said businesses 
have failed or refused to comply with their obligation to post bond and such other relevant 
information. 
SEC. 18. Issuance of Receipts. - 
(a) Transactions in Bulk. - All transactions involving the sale or transfer of LPG in 
bulk must be covered by a form bearing, in addition to other requirements under applicable laws, 
the following information: 
1) registered name of the seller; 
2) address of the seller; 
3) date of the transaction; 
4) quantity or volume of the product; 
5) plate number of transporting trucks or registered name of transporting barge; 
6 )  total price of the transaction; and 
11 


7) such other information as may be prescribed by the DOE with the concurrence of 
I 
affected industry players . 
(b) Transactions in Cylinders. - All transactions involving the sale or transfer of 
LPG from dealers to retail outlets and to direct consumers must be covered by an official receipt 
or sales invoice bearing, in addition to other requirements under applicable laws, the following 
information: 
1) registered name of the seller; 
2) address of the seller; 
3) date of the transaction; 
4) brand of LPG; 
5) net weight or weight of the LPG contained in the cylinder; 
6) unit price per cylinder; 
7) total price of the transaction; and 
8) such other information as may be required by the DOE. 
All other transactions involving the sale or transfer of possession or ownership of LPG 
from one industry participant to another must likewise be covered by an official receipt or other 
written instrument bearing the above information, as applicable. 
SEC. 19. Declaration of LPG Cylinder as Injurious, Unsafe or Dangerom, - When 
the DOE finds, motu propio or upon petition of any person, that an LPG cylinder is defective and 
hence, possibly injurious, unsafe or dangerous, it shall, after due notice and hearing, issue the 
appropriate order for its immediate confiscation, recall, seizure, impoundment or prohibition 
from public sale or distribution: Provided, That, in the sound discretion of the DOE it may 
declare an LPG cylinder to be imminently injurious, unsafe or dangerous, and order its 
immediate recall, seizure and impoundment, in which case the cylinder owner shall be afforded a 
hearing, within forty-eight (48) hours from issuance of such order, for the purpose of 
determining the propriety of the recall and seizure of the cylinders: Provided, further, That such 
a declaration shall be limited to instances when the cylinder is already filled and already sealed 
inside a refilling plant; dealer’s showroom; retail outlets; and/or cylinder transporter 
For cases initiated motu propio by the DOE, it shall make a final determination of 
whether an LPG cylinder is injurious, unsafe or dangerous within thirty (30) days from 
termination of administrative proceedings: Provided, further, That in the absence of such 
determination upon expiration of the period therefor, the DOE shall thereafter release custody of 
the LPG cylinders to the industry participant in custody thereof prior to the order for recall, 
impoundment or prohibition from public sale or distribution. 
SEC. 20. Procedure for Petition for Declaration of LPG Cylinder us Injurious, 
Unsafe or Dangerous. - Any interested person may, upon payment of the appropriate filing fee 
prescribed by the DOE, petition the DOE for an order declaring an LPG cylinder injurious, 
dangerous or unsafe. In case the DOE, acting on such petition or on its own initiative and upon 
due notice and hearing, determines an LPG cylinder to be injurious, dangerous or unsafe, it shall 
so notify the cylinder owner of such finding and order the recall, prohibition or seizure of the 
LPG cylinder. 
12 


I 
SEC. 21. Recall, Seizure, Impoundmenf and Prohibition of Defective LPG Cylinders. 
- The order for recall, seizure, impoundment or prohibition issued by the DOE shall contain a 
prohibition against the refilling, sale or distribution of the recalled or banned cylinder. 
The cylinder owner against whom the order for recall, prohibition or seizure is issued shall be 
required to subject the recalled, banned or seized LPG cylinder to repair or requalification 
processes to render the same compliant with appropriate PNS, or, where repair or requalification 
is not possible or practicable, to present proof of scrappage thereof. 
The cylinder owner against whom the order for recall, seizure or prohibition is issued 
may petition for the revocation of the order. The DOE shall revoke the order for recall, 
prohibition or seizure upon a finding that the subject LPG cylinder has been repaired or 
otherwise made compliant with the required PNS, or has been replaced with a like or equivalent 
cylinder which conforms with the appropriate PNS. 
The cylinder owner shall not charge a consumer who avails of the remedy as provided 
above of any expenses or costs that may be incurred in the course of repair and requalification. 
SEC. 22. Disposition of Recalled, Banned or Seized Cylinders. - The DOE shall 
formulate rules for the disposition of recalled, banned or seized cylinders: Provided, That it shall 
adopt and enforce the rules for disposition of recalled, banned or seized cylinders established by 
the DTI. 
SEC. 23. Weighing Devices. - 
(a) Calibrated and Sealed Weighing Devices Required in Premises. - All refiners, 
importers, refillers, haulers, dealers, and retail outlets shall maintain, at all times, in all their 
establishments or outlets and within the sales areas accessible to the public, suitable weighing 
devices duly calibrated annually and sealed by the City or Municipal Treasurer, the DOST, or 
any other government agency authorized therefor, and which shall accurately measure LPG 
cylinders up to one-tenth (0.1) of one kilogram. 
(b) Checking of LPG Cylinder Content bv Dealers, Retail Outlets and Haulers. - All 
dealers, retail outlets and haulers that sell directly to consumers, shall weigh the LPG cylinders 
prior to being placed in the sales areas and also in the presence of the customers prior to sale, to 
afford the latter an opportunity to verify the correctness of the weight of the cylinders and the 
LPG contents thereof. 
SEC. 24. Cylinder Sealing. - All LPG cylinders shall be provided with seals after 
filling, which conform to the specifications of the DOE: Provided, That the DOE, after 
consultation with the concerned brand owners, shall establish such specifications: Provided, 
further, That the cylinder owner and its authorized refiller shall be jointly responsible for 
ensuring that LPG cylinders are properly sealed before the cylinders leave the filling or refilling 
plants: Provided, finally, That LPG cylinders with tampered or broken seals shall not be sold or 
distributed. 
Cylinder seal manufacturers shall not sell seals of an LPG brand owner to any other 
brand owner, unless allowed by both the brand owner itself and the DOE. Seals are to be 
registered with the DOE. 
SEC. 25. Labeling Requiremenis for LPG Cylinders. - LPG cylinders shall comply 
.with labeling requirements of the PNS, with the labeling requirement provided under this 
- 
Section and as may be further prescribed by the DTI. 
(a) For LPG Cvlinder Collar. - All LPG cylinders, whether mahufactured locally or 
imported, shall have the following embossed or stamped on the cylinder collar: 
13 


1) The manufacturer’s registered trade name or brand name, trademark and business 
name; 
2) For imported cylinders, the name and address of the importer in the Philippines; 
3) Philippine Standard or Import Commodity Clearance certification marks, as 
applicable; 
4) Specific standard used; 
5) Date of testing or requalification; 
6 )  Thickness of plate; 
7) Cylinder water capacity; 
8) Tare weight; 
9) Design and test pressure; and 
10) Serial number. 
The above requirements shall form an integral part of the cylinder collar, without danger 
\ 
of being erased or detached under ordinary handling of the cylinder. 
(b) For LPG Cylinder Body. - All LPG cylinders, whether manufactured locally or 
imported, shall bear the following: 
1) The registered brand name, trade name or trademark of the LPG product; 
2) A color which distinguishes the brand owner of the LPG it contains; 
3) Tare weight; and 
4) Net weight. 
The brand name, trade name or trademark of the LPG product shall be embossed and 
shall form an integral part of the body of the cylinder, without danger of being erased or 
detached under ordinary handling of the cylinder. 
SEC. 26.Labeling of Delivery Vehicles. -All trucks and other vehicles used for 
hauling and delivering LPG cylinders shall display on their delivery trucks or vehicles a 
prominent signage or label showing the specific LPG brand name or names that it represents, 
services or sales. The absence of a signage or label on the delivery vehicle as required under this 
Section shall give rise to a presumption that the hauler is not duly authorized to transport LPG. 
Trucks without the appropriate signage or label can be seized or impounded. 
SEC. 27.Direct Sales by Haulers. - Subject to guidelines and requirements as may be 
promulgated by the DOE, haulers who engage in direct selling of LPG to consumers shall be 
treated as dealers for purposes of this Act and shall observe the standards and requirements for 
deaIers under this Act. 
14 


ARTICLE IV 
QUALITY STANDARDS 
SEC. 28.Promulgation of Quality Standards. - In order to reduce safety risks and 
operational hazards, and promote the use of environmentally safe and worker-benign 
technologies and processes, industry participants are hereby required to comply with the quality 
standards established by the DOE for the LPG industry consistent with the PNS formulated by 
the DTI. The quality standards shall be provided for, but not be limited to, the following: 
(a) 
Primary Storage Facilities 
(b) 
Cylinder-Filling Plants and Facilities 
(c) 
(d) 
Dealers and Retail Outlets 
(e) 
Service Stations 
Bulk-Loading, Unloading and Transportation of LPG 
The DOE shall formulate the specific guidelines for mandatory compliance with the 
established quality standards and enforce the appropriate sanctions for violations thereof: 
Provided, That the DOE shall consult the LPG industry participants in the formulation of said 
standards. 
Provided, That nothing in this article will allow licensees for refilling plants, dealers, and 
retailers to sell ancillary equipment not recommended by the cylinder brand owner: Provided, 
further, That the DOE, in formulating the quality standards in this act, when applicable, shall 
adopt the Philippine LPG Association safety code and the applicable international safety 
standards for the LPG industry, including, but not limited to, the National Fire Protection 
Association (NFPA) 58, otherwise known as the liquefied petroleum gas code for LPG. 
SEC. 29. 
Usage Requirements for Customers and End-users. - The DOE and the 
DTI shall jointly undertake educational and information dissemination activities to enhance 
customer awareness among LPG consumers and end-users. In addition to such educational 
programs, the DOE and/or the DTI, after consultation with the LPG industry participants, may 
prescribe rules and regulations in relation to the following: 
(a) For industrial or large end-users, installation of signs at storage facilities; 
(6) Use of only branded, legally-filled and certified LPG cylinders; and 
(c) Installation of LPG appliances and devices approved by the DTI: Provided, That 
such appliances and devices shall be installed only by qualified servicemen as provided in this 
Act. 
SEC. 30. Bond Discount and Bond Exemption for Satisfactory Performance. - Any 
industry participant whose performance bond, as required under Article I11 of this Act, has not 
been charged with any fine or fee arising from any violation of this Act for an uninterrupted 
period of two (2) consecutive years, equivalent to fifty percent (50%) of the required amount for 
each year as prescribed by the DOE or the DTI, as the case may be: Provided, That such 
discount shall not be accumulated or compounded: 
Provided, further, That an industry 
participant who continues to have no record of any fine or fee arising from ANY violation of this 
Act for the next succeeding five (5) years shall be thereafter exempt from paying the 
performance bond. Any violation of this Act, its implementing rules and regulations, or 
guidelines prescribed by the DOE or the DTI, as the case may be, or any of its divisions, shall 
immediately forfeit the bond discount or bond exemption provided herein and such industry 
15 


participant shall post and maintain the performance bond in such amount as may be required by 
the DOE. 
ARTICLE V 
PROHIBITED ACTS 
SEC. 31. Engaging in Business Without Standards Compliance Certificate. - Any 
industry participant who engages in business without securing a Standards Compliance 
Certificate from the DOE or the DTI as required under Article I11 of this Act shall be penalized 
with a fine of Five Thousand Pesos (PhP 5,000.00) for an individual and Ten Thousand Pesos 
(PhP 10,000.00) for a corporation, for each day of operation without a Standards Compliance 
Certificate: Provided, That the maximum fine to be imposed shall be Five Million Pesos (PhP 
5,000,000.00) for an individual and Ten Million Pesos (PhP 10,000,000.00) for a corporation. 
SEC. 32. Engaging in Business Without Accreditation. - Any person who engages in 
the business of manufacturing cylinder seals or of requalifying, repairing or scrapping LPG 
cylinders without first securing a certificate of accreditation from the DTI as provided under this 
Act, shall be penalized with a fine of Three Thousand Pesos (PhP 3,000.00) for an individual and 
Five Thousand Pesos (PhP 5,000.00) for a corporation, for each day of operation without a 
certificate of accreditation: Provided, That the maximum fine to be imposed shall be Five 
Million Pesos (PhP 5,000,000.00) for an individual and Ten Million Pesos (PhP 10,000,000.00) 
for a corporation. 
SEC. 33. 
Failure to Maintain or Replenish Performance Bond. - A cylinder 
manufacturer, cylinder, importer, LPG refiner, LPG importer, bulk supplier, refiller, bulk loader, 
hauler, piped gas provider, repairer, requalifier, or cylinder seal manufacturer who fails to 
maintain or replenish the performance bond from a reputable insurance company duly licensed 
by the insurance commission required to be posted under the provisions of Article 111 of this Act, 
shall be penalized with a fine of Five Thousand Pesos (PhP 5,000.00) for an individual and Ten 
Thousand Pesos (PhP 10,000.00) for a corporation, for each day of operation that the 
. performance bond is not replenished: Provided, That the maximum fine to be imposed shall be 
Five Million Pesos (PhP 5,000,000.00) for an individual and 
Ten Million Pesos (PhP 
10,000,000.00) for a corporation. 
- 
SEC. 34. 
Obstruction of Inspection. - Any industry participant who refuses, 
prevents or obstructs the inspection of its premises and records as provided under Article I11 of 
this Act shall be penalized with a fine of Three Hundred Thousand Pesos (PhP 300,000.00) for 
an individual and Five Hundred Thousand Pesos (PhP 500,000.00) for a corporation, for each 
instance of violation. 
SEC. 35. Failure to Post Standards Compliance Certificate. - An industry participant 
who fails or refuses to post its Standards Compliance Certificate as required under Article 111 of 
this Act and as required by the DOE, shall be penalized with a fine not exceeding Five 
Thousand Pesos (PhP 5,000.00) for each instance of violation. 
SEC. 36. Failure to Submit Reportorial Requirements. - An industry participant who 
fails to submit periodic reports as may be required by the DOE, within a reasonable period and in 
the manner prescribed by the DOE, shall be penalized with a fine not exceeding Five Thousand 
Pesos (PhP 5,000.00) for each instance of violation. 
SEC. 37. Illegal Storage. - A refiner, importer, refiller, hauler, dealer, retail outlet or 
bulk consumer who stores LPG in bulk without obtaining the Standards Compliance Certificate 
required under Article I11 of this Act shall, upon conviction, be penalized with a fine of not less 
than Twenty Thousand Pesos (PhP 20,000.00) but not more than One Hundred Thousand Pesos 
(PhP lOO,OOO.OO), or imprisonment of at least six (6) months but not more than two (2) years, or 
both, at the discretion of the court: Provided, That the second and subsequent violations shall be 
penalized with both fine and imprisonment as provided herein. 
16 


SEC. 38. Failure to Comply with Product Standards. - An industry participant who, 
by act or omission, fails to comply with plant or product standards set by the DOE with respect 
to their specific activity shall, upon conviction, be penalized as follows: 
(a) Non-compliance with DOE mandatory requirements on safety designs for refilling 
plants, equipment, depots, pipeline systems and similar facilities shall be penalized with a fine of 
not less than Fifty Thousand Pesos (PhP 50,000.00) but not more than One Million Pesos (PhP 
1,000,000.00) or imprisonment of at least six (6) months but not more than two (2) years, or both 
at the discretion of the court: Provided, That nothing in this paragraph shall preclude the court 
from ordering the closure of the facility until such time that the mandatory requirements have 
been met. 
(b) Failure to secure the required PNS Certificate for LPG cylinders shall be penalized 
with a fine of Five Thousand Pesos (PhP 5,000.00) for an individual or Ten Thousand Pesos 
(PhP 10,000.00) for a corporation, for each non-compliant cylinder used and distributed to 
consumers, or imprisonment of at least six (6) months but not more than two (2) years, or both at 
the discretion of the court: Provided That the maximum fine to be imposed shall be Five 
Hundred Thousand Pesos (PhP 500,000.00) for an individual and One Million Pesos (PW 
1,000,000.00) for a corporation: 
Provided, further, That the second and subsequent violations shall be penalized with both 
fine and imprisonment as provided herein: Provided, finally, That this section shall not apply 
unless the cylinder is in the possession of an illegal refiller or trader. 
SEC. 39. Adulteration. - A refiner, importer, refiller, piped gas provider, dealer or 
retail outlet who mixes LPG 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 in the 
failure of the LPG to meet the required product specifications of the DOE, shall, upon 
conviction, be penalized with a fine of Ten Thousand Pesos (PhP 10,000.00) for an individual 
and Twenty Thousand Pesos (PhP 20,000.00) for a corporation, for each cylinder containing 
adulterated LPG, or imprisonment of at least six (6) months but not more than two (2) years, or 
both, at the discretion of the court: Provided, That the second and subsequent violations shall be 
penalized with both fine and imprisonment: Provided further, That the maximum fine to be 
imposed shall be Five Hundred Thousand Pesos (PhP 500,000.00) for an individual and One 
Million Pesos (PhP 1,000,000.00) for a corporation. 
SEC. 40. Underfilling. - When the net quantity of LPG contained in cylinders sold, 
transferred, delivered or filled by refillers is less than the cylinder content required by the 
government at the filling plant, the refiller shall, upon conviction, be penalized with a fine of 
Five Thousand Pesos (PhP 5,000.00) for an individual and Ten Thousand Pesos (PhP 10,000.00) 
for a corporation for each underfilled cylinder or with imprisonment of at least six (6) months but 
not more than two (2) years, or both, at the discretion of the court: Provided, That second and 
subsequent violations shall be penalized with both fine and imprisonment: Provided, firther, 
That the maximum fine to be imposed shall be Five Hnndred Thousand Pesos (PhP 500,000.00) 
for an individual and One Million Pesos (PhP 1,000,000.00) for a corporation. When the net 
quantity of LPG for sale in cylinders sold, transferred, delivered or filled by dealers or retail 
outlets is less than three tenths of one kilogram (0.30 Kg) or the government-required cylinder 
content quantity, the dealer or retail outlet shall be penalized with the same fines mentioned 
earlier in this paragraph. 
A broken, tampered, absent or removed seal shall give rise to a presumption that the 
cylinder is underfilled. A cylinder containing less than the required LPG quantity which is not 
so identified and set apart or taken out from the sales area by dealers or retail outlets is presumed 
to be for sale. 
17 


SEC. 41. Illegal Refilling. - The following shall constitute illegal refilling of LPG 
cylinders under this Act: 
(a) Refilling of LPG cylinders by a person or entity other than the rightful owner thereof, 
unless specific permission is granted by the owner for such refilling as evidenced by a written 
contract or similar instrument; 
(b) Refilling of cylinder with LPG of a brand, trademark, trade name, or registered 
business name other than that of the LPG brand owner indicated on the cylinder tank, otherwise 
called “pirate filling” or “cross-filling”; 
(c) Refilling of LPG cylinder without embossed markings or other indication of the brand 
or trade name thereof, or bearing defaced, tampered or illegible markings contrary to the 
mandatory labeling and stamping requirements under this Act; 
(d) Refilling of LPG cylinder which is due for repair, requalification or scrappage as 
provided in this Act, or is subject to the recall or prohibition order of the LPG Board; 
(e) Filling directly from LPG tank trucks without the use of approved filling machines; 
(f) Refilling LPG from one cylinder to another without using the prescribed equipment; 
(g) Backyard refilling of cylinders other than in properly designed LPG refilling plants; 
(h) Filling cylinders with products or substances other than LPG in an effort to achieve 
the correct net weight; 
(i) Any other refilling of LPG cylinders in violation of the mandatory requirements or 
prescribed standards under this act; and 
(i) Unauthorized loading of bulk LPG tanks in industrial accounts. 
It shall also be prohibited for any marketer, dealer or retail outlet to knowingly sell 
illegally refilled cylinders. 
An industry participant found guilty of illegal refilling under this Section shall, upon 
conviction, be penalized with a fine of Ten Thousand Pesos (PhP 10,000.00) for an individual 
and Twenty Thousand Pesos (PhP 20,000.00) for a corporation, for each illegally-filled cylinder, 
or imprisonment of at least six (6) months but not more than two (2) years, or both, at the 
discretion of the court: Provided, That second and subsequent violations shall be penalized with 
both fine and imprisonment: Provided, &rther, That the maximum fine to be imposed shall be 
Five Million Pesos (PhP 5,000,000.00) for an individual and Ten Million Pesos (PhP 
- 10,000,000.00) for a corporation. 
SEC. 42. Unauthorized Trading of LPG Cylinders. - Any industry participant who, 
without the consent of the cylinder owner, stores empty LPG cylinders in quantities in excess of 
those allowed by the DOE, through cylinder swapping and other similar industry practices, and 
exchanges, barters, sells, distributes or otherwise transfers ownership ancUor possession thereof 
to a person or entity other than the cylinder owner and without the authority of the cylinder 
owner shall, upon conviction, be penalized with a fine of Three Thousand Pesos (PhP 3,000.00) 
for an individual and Six Thousand Pesos (PhP 6,000.00) for each illegally-stored or sold empty 
cylinder, or imprisonment of at least six (6) months but not more than two (2) years, or both, at 
the discretion of the court: Provided, That second and subsequent violations shall be penalized 
with both fine and imprisonment. Provided, furfher, That the maximum fine to be imposed shall 
be Three Hundred Thousand Pesos (PhP 300,000.00) for an individual and Six Hundred 
Thousand Pesos (PhP 600,000.00) for a corporation. 
18 


Provided, however, That if the legitimate cylinder owner refuses to buy back the 
cylinders that were acquired by other LPG industry participants, the party in possession of the 
acquired cylinders shall be allowed to dispose of said cylinders, subject to the guidelines 
promulgated by the DOE. 
SEC. 43. Tampering of LPG Cylinders and Similar Acts. - Any person who tampers, 
alters or modifies LPG cylinders through any means such as, but not limited to, changing the 
cylinder valve, repainting, and re-labeling, by any person other than the cylinder owner shall, 
upon conviction, be penalized with a fine of Five Thousand Pesos (PhP 5,000.00) for an 
. individual and Ten Thousand Pesos (PhP 10,000.00) for a corporation, for each tampered or 
altered LPG cylinder, or imprisonment of at least six (6) months but not more than two (2) years, 
or both, at the discretion of the court: Provided, That second and subsequent violations shall be 
penalized with both fine and imprisonment: Provided, further, That the maximum fine to be 
imposed shall be Five Million Pesos (PhP 5,000,000.00) for an individual and Ten Million Pesos 
(PhP 10,000,000.00) for a corporation. 
SEC, 44. Illegal Possession of LPG Cylinder Seal. - Any person found in possession 
of LPG cylinder seals, including the seals already used in the cylinders without authority from 
the cylinder owner or its authorized refiller shall, upon conviction, be penalized with a fine of 
Five Thousand Pesos (PhP 5,000.00) for an individual and Ten Thousand Pesos (PhP 10,000.00) 
for a corporation, for each LPG seal found in its or his possession, or imprisonment of at least six 
(6) months but not more than two (2) years, or both, at the discretion of the court: Provided, 
That second and subsequent violations shall be penalized with both fine and imprisonment: 
Provided, further, That the maximum fine to be imposed shall be Five Million Pesos (PhP 
5,000,000.00) for an individual and Ten Million Pesos (PhP 10,000,000.00) for a corporation. 
SEC. 45. Failure to Comply with Weighing Device Requiremenfs. - A refiner, 
importer, refiller, dealer or retail outlet who fails to comply with the requirements pertaining to 
weighing devices under Article 111, shall be penalized with a fine of Ten Thousand Pesos (PhP 
10,000.00) for an individual or Twenty Thousand Pesos (PhP 20,000.00) for a corporation. 
SEC. 46. Overloading. - A hauler who loads and transports, or permits the loading and 
transportation of LPG cylinders in quantities greater than the rated capacity of the vehicle or in 
such a manner that endangers the life and safety of its passengers or the public, shall be 
penalized with a fine of Twenty Thousand Pesos (PhP 20,000.00) for an individual and Forty 
Thousand Pesos (PhP 40,000.00) for a corporation: Provided, That the penalties provided herein 
shall be without prejudice to its liability under other laws for any damage or injury to person or 
property. 
SEC. 47. Sale or Distribution to Non-complying Persons or Entities. - A cylinder 
manufacturer, refiner, importer, refiller, dealer or retail outlet who knowingly sells or distributes 
LPG or LPG cylinders or LPG Seals to persons or entities committing any of the prohibited acts 
provided in this Act and in such other issuances or orders to be issued by the DOE, shall upon 
conviction, be penalized for each sale or distribution with a fine of not less than One Hundred 
Thousand Pesos (PhP 100,000.00) but not more than Five Hundred Thousand Pesos (PhP 
500,000.00) or imprisonment of at least six (6) months but not more than two (2) years, or both 
at the discretion of the court. 
*
.
 
SEC. 48. Piuerage of LPG. - Any person who pilfers LPG, upon conviction, shall be 
penalized with a fine of One Million Pesos (PhP 1,000,000.00) for an individual and Two 
Million Pesos (PhP 2,000,000.00) 
for a corporation or imprisonment of at least six (6) months 
but not more than two (2) years, or both, at the discretion of the court: Provided, That second 
and subsequent violations shall be penalized with both fine and imprisonment: Provided, 
further, That the maximum fine to be imposed shall be Five Million Pesos (PhP 5,000,000.00) 
for an individual and ten million Pesos (PhP 10,000,000.00) for a corporation. 
19 


SEC. 49. Suspension or Revocation of Business License or Permit. - The penalties 
provided herein shall be without prejudice to the suspension or revocation of the business license 
of such person by the appropriate local government unit, within, the same year for which such 
business license was granted. 
SEC. 50. Imposition of Administrative Penalty. - The DOE may, in addition to or in 
lieu of the institution of a criminal action in a court of law, impose an administrative penalty 
within the range prescribed under the provisions of this Article, which may be charged against 
the performance bond of the industry participant. 
SEC. 51. “Strike T/zree”PenaZty. - Any person convicted with finality of violating the 
provisions of this Act for three (3) consecutive instances shall be perpetually disqualified from 
engaging in any activity in the LPG industry. 
SEC. 52. Publicntion of Persons Convicted of Violations of this Act. - The DOE 
- shall, on a quarterly basis, publish in a newspaper of general circulation, the names of industry 
players convicted with finality of violations of this Act. 
SEC. 53. Violations by Juridical Entities. - If the violation is committed by a 
corporation, partnership, association or other juridical entity, the penalty of imprisonment shall 
be imposed on the responsible directors or officers thereof. If the offender is an alien, he shall be 
deported immediately, without further proceedings, after service of sentence. 
SEC. 54. Prosecution Under Separate Laws. - Prosecution under this Act shall be 
without prejudice to any liability for violation of any provision of the Revised Penal Code, 
Republic Act No. 8293, otherwise known as the “Intellectual Property Code of the Philippines”, 
and other applicable laws. 
ARTICLE VI 
EDUCATION AND RESEARCH 
SEC. 55. Public Information Campaign. - The DOE, in coordination with the 
Philippine Information Agency, the DILG and such other appropriate government agencies, shall 
jointly develop and implement an effective strategy for the dissemination of information to the 
public about LPG, cylinder quality and safety. 
SEC. 56. Development Research. - The DOE, in coordination with the DOST and the 
DTI, shall conduct study and research for the purpose of developing more efficient methods of 
providing safe, clean and hazard-free LPG to consumers. 
ARTICLE VI1 
FINAL PROVISIONS 
SEC. 57. Implementing Rules alid Regulations. - In consultation with DTI and the 
LPG industry participants, the DOE shall formulate and issue the necessary implementing rules 
and regulations within one hundred eighty (180) days from the effectivity of this Act. 
SEC. 58. Transition Phase. - In order to provide a smooth implementation of the 
monitoring and supervisory mechanisms provided herein, the industry participants shall be given 
a grace period of six (6) months from the effectivity of this Act, within which to comply with the 
provisions herein: Provided, That during the transition period, the industry participants shall 
continue to be bound and made liable under the provisions of existing laws, rules and regulations 
not otherwise repealed by this Act. Industry participants already legally engaged in business 
upon the effectivity of this Act and who are required to secure a Standards Compliance 
Certificate prior to the renewal of their business licenses as provided in Section 13 of this Act, 
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shall not be required to obtain a Standards Compliance Certificate for the duration of the grace 
period. 
SEC. 59. Separability Clause. - Any portion or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifymg other portions and 
provisions hereof as long as such remaining portion or provision can still subsist and be given 
effect in their entirety. 
SEC. 60. Repealing Clause. - All other laws, decrees, executive orders, proclamations 
and administrative regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
SEC. 61. Effectivity Clause. - This Act shall take effect within fifteen (15) days after 
its publication in at least two (2) newspapers of general circulation. 
Approved, 
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