FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 721 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This measure is a consolidated/substituted bill drafted by the Committee on 
Trade and Commerce joint with the Committee on Energy during the 14th 
Congress. It seeks to establish the monitoring and supervisory framework for the 
Liquefied Petroleum Gas (LPG) industry in order to strengthen and enhance 
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. 
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 households 
commonly use LPG for cooking, the safety of LPG use is a concern shared by 
most consumers. In the last three years, more than 3,000 fire incidents nationwide, 
leading to loss of lives and properties, were attributed to improper or indiscriminate 
handling of LPG. Around four million dilapidated LPG cylinders are reportedly 
circulating in Metro Manila alone. 
To address the proliferation of sub-standard and defective LPG cylinders, 
comprehensive legislation is still needed, however, to sustain, institutionalize, and 
upgrade LPG industry standards and to establish the supervisory framework for 
the industry's monitoring system. 
The bill shall also 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 LPG industry to ensure their compliance with national product 
quality and environmental, worker safety, and consumer welfare standards. 
In view of the foregoing, approval of this bill is earnestly sought. 
Senator 


• 
FIFTEENTH CONGRES~ OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 721 
INTRODUf;ED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO 
ESTABLISH 
THE; 
REGULATORY FRAMEWORK FOR THE 
SAFE 
OPERATIONS OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, 
PROVIDE ADDITIONAL POWERS TO THE DEPARTMENT OF ENERGY, 
DEFINE AND PENALlZI= CERTAIN ACTS, AND FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Title. - This Act shall be known as the "LPG Industry 
Regulation and Safety!Act of 2010." 
SEC. 2. DeclarC/tion of Policy. - It shall be the policy of the State to 
establish a 
regulatory framework for the refining, importation, refilling, re-
qualification, 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 tq ultimately 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 of this Act 
primarily through the D~partment 9f Energy, in coordination with the Department of 
Trade and Industry, the Department of Justice, the Department of Interior and 
Local 
Government, 
and 
other 
appropriate 
government 
agencies 
and 
instrumentalities. 
SEC. 3. Construction and Interpretation Clause. - Any doubts in the 
interpretation of any provision in this Act shall be interpreted in favor of the 
interests of the consurner particularly to ensure the safety of consumers and the 
general public. 
SEC. 4. Definition of Terms. - For the purposes of this Act, the following 
terms are herein below defined: 
(a) "OENR" shcjll refer to the Department of Environment and Natural 
Resources; 
(b) "OILG" shall refer to the Department of Interior and Local Government; 
(c) "OOE"shall refer to the Department of Energy; 


(d) "OOST' shall refer to the Department of Science and Technology; 
(e) "OTt" shall refer to the Department of Trade and Industry; 
(f) "LGU" and "LGUs" shall refer to a local government unit or local 
government units, respectively; 
(g) "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 re-
qualifier 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 
Re-qualification;" 
0) "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) "Brand Owner" shall refer to a person, natural or juridical, owning the 
brand, name, logo, color, mark, andlor distinction as registered with the DTI; 
(I) "Bulk Consumer" shall refer to any person or entity whose regular use or 
consumption of LPG is limited to its own use and requires bulk storage of LPG at a 
volume as may be determined by DOE; 
(m)"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; 
(n) "Bulk Supplier" shall refer to any person who engages in the sale or 
distribution of LPG in such large quantities. 
(0) "Certification" 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;" 
(p) "Consumer" shall refer to any person who purchases LPG for one's own 
consumption; 
(q) "Cross FiI!ing" shall refer to the filling of cylinders by a person other than 
by the brand owner; 
(r) "Cylinder" or "LPG Cylinder" shall refer to any portable pressure-vessel 
or container for LPG, designed for the transportation and storage of LPG; 
(s) "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, re-
qualifiers, repairers, scrapping centers, cylinder seal manufacturers and such 
other; 
(t) "Cylinder Owner" shall (efer 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; 
(u) "Cylinder Swapping" shall refer to the industry practice of exchanging 
LPG cylinders; 
(v) "Oefective cylinder"shal/ 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; 
(w) "Oealer" shall refer to any person involved in the sale or trading of LPG 
m cylinders to consumers and/or retail outlets; 
(x) "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; 
(y) "Importer" shall refer to any person engaged in the importation of LPG 
whether for processing, sale or own use; 
(z) "Industry Participants" shall refer to persons or entities engaged in 
activities or businesses related to the manufacture, importation, transportation, 
distribution or sale of LPG, including, among others, Cylinder Industry Participants 
and LPG Industry Participants as defined in this Act; 
(aa)"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 ~tandards set forth in the PNS 22; 
(bb) "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, re-fillers; piped LPG providers, haulers, dealers, service stations, retail 
outlets and seal manufacturers; 
(cc)"Marketer"shall refer to any person, whether natural or juridical, 
engaged in the sale of LPG, whether in bulk or retail; 
(dd) "Petroleum products" 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 refinery 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; 
(ee) "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; 


• 
(ff) "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; 
(gg) "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; 
(hh) "Primary 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; 
(ii) "Qualified LPG 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; 
Uj) "Ref iller" 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; 
(kk) "Refilling Plant" shall refer to any installation that is used for refilling 
LPG into cylinders and has LPG bulk storage and refilling facilities therefore; 
(II) "'Refiner" shall refer to any person who refines LPG through distillation, 
conversion and treatment of crude oil and other naturally occurring petroleum 
hydrocarbons; 
(mm) "Re-qualification" 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 Re-qualification to determine its acceptability 
for continuous use and distribution and subsequent repair or scrappage, where 
appropriate;" 
(nn) "Re-qualifer" shall refer to any person duly accredited by the DTI 
pursuant to this Act to engage in the business of re-qualifying LPG cylinders; 
(00) "Repair" shall refer to the removal and replacement of parts or 
attachments of LPG cylinders or the performance of any other necessary 
corrective and restorative measures pursuant to the PNS, to restore the fitness of 
LPG cylinders for refilling and distribution; 
(pp) "Repairer" shall refer to any person or entity duly certified by the DTI to 
engage in the business of repairing LPG cylinders; 
(qq) "Retail Outlet" shall refer to any entity that sells LPG cylinders directly 
to a consumer in quantities as may be determined by the DOE; 
(rr)"Reticulated 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;" 
(ss) "Scrappage"shall refer to the destruction of defective LPG cylinders 
declared by a re-qualifier or the DTI to be unfit for use; 


, 
(tt) "Scrapping Center" shall refer to any person or entity engaged in the 
business of disposing defective LPG cylinders; 
(uu) "Sea/" shall refer to the protective cover placed on the valve of an LPG 
cylinder; 
(vv) "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; and 
(ww) "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. 
. CHAPTER II 
IMPLEMENTING AGENCIES 
SEC. 5. Lead Agency. - Unless expressly stated in this Act that a particular 
function shall be the responsibility of another government 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. 6. Additional Powers and Functions of the DOE Secretary. - In 
connection with the enforcement 9f this Act and in addition to his/her powers and 
functions under existing laws, theDOE 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 
from 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 re-qualification, and to secure proper proof of 
compliance therewith in accordance with the requirements of DTI; 
(f) 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 Chapter 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 Chapter III 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; 
U) 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; 
(I) 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, which shall 
include the power to deputize other agencies to assist the DOE in implementing its 
mandate under this Act. 
(0) Exercise such other powers and functions as may be necessary or 
incidental to attaining the objectives of this Act; and 
(p) 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 tre tanks. 


SEC. 7. Powers and Functions of DTI- Under this Act, the DTI shall have 
the following exclusive powers and functibns: 
(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 re-fillers, and certify to 
their conformity to PNS and their fitness for public sale and distribution; 
(c) 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; 
(d) Grant accreditation and certification of conformity to PNS to re-qualifiers, 
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 Chapter III of this Act, and to 
revoke the same; and 
(e) Extend all necessary assistance to the DOE in the implementation of 
measures in furtherance of the objectives of this Act. 
SEC. 8. 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 LPQ industry participants found to be in violation of 
this Act; 
(b) Coordinate with the DOE and the DTI in the dissemination of information 
relevant to the implementation of this Act, particularly to the LGUs and the PNP; 
and 
(c) Extend all necessary assistance to the DOE with respect to the 
enforcement of measures in fu rtherance of this Act. 
SEC. 9. Powers and Functions of LGUs. - LGUs, pursuant to their powers 
provided by law especially under Republic Act No. 7160, otherwise known as the 
Local Govemment Code, 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 Chapter III of this Act, the LGU shall 
immediately revoke the business permit or license of said LPG industry participant. 
In case of conflict between the decision of the DOE and the LGU involving 
matters, especially violations, covered by this Act, the decision of the DOE shall 
prevail. 
SEC. 10. Technical Working Group. - The DOE shall be authorized to 
convene a Technical Working Group to assist the DOE in the thorough review and 
evaluation of the rules and regulations, policies, safety standards and PNS 


affecting the LPG industry. The Technical Working Group shall be composed of 
not less than ten (10) nor more than fifteen (15) representatives of the pertinent 
implementing government agencies and the private sector particularly industry 
participants and consumer groups. Private sector representation In the Technical 
Working Group shall be determined and appointed by the Secretary through 
consultation. 
CHAPTER III 
MONITORING AND ~NFORCEMENT MECHANISMS 
SEC. 11. Ownership of LPG Cylinders. - The provisions of the Civil Code 
to the contrary notwithstanding, the brand owner whose permanent mark appears 
on the LPG cylinder shall be presumed the owner thereof, irrespective of the party 
in custody or possession of the cylinder, and regardless of whether or not such 
cylinder is or continues to be properly marked, stamped or identified to contain its 
LPG brand, or whether or not such cylinder is in compliance with or .continues to 
comply with any other product or quality standard prescribed under law or by the 
DTI pursuant to this Act, unless otherwise there is any unequivocal proof or 
indication that such cylinder was sold, alienated, or otherwise disposed of by the 
refiner or importer to an unrelated third party under a written instrument. 
The brand owner shall, through its authorized dealer or outlet, refund the 
amount indicated in the deposit slip or receipt when the consumer returns the 
cylinder. 
The brand owner shall have the obligation to ensure that its cylinders 
comply with all required quality and safety standards and specifications before 
they are released for distribution: Provided, That receipt by the DOE of a verified 
notice or report from the brand owner regarding any lost, stolen or missing LPG 
cylinders shall prima facie relieve the cylinder owner of the obligation to ensure the 
quality and safety of such LPG cylinders. Such report may be rebutted by contrary 
evidence. 
SEC. 12. 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. 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 as may be provided by other laws. 
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 every importation'or exportation: Provided, That all LPG and LPG 
cylinder importations shall be in accordance with the law, including international 
agreements to which the Philippines is a signatory. 
SEC. 13. Reports and Disclosures to DOE - The DOE, 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 the DOE 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 shall be penalized under Section 35 of this 
Act. 
SEC. 14. Central Database of Industry Participants. - The central 
database of LPG industry participants shall include their corporate or business 
name or trade name list of all directors and officers; principal office or business 
address; primary purpose or nature of business; registered brand name or logo for 
LPG, LPG cylinder, facilities and equipment; haulers, dealers, retail outlets and 
cylinder seal manufacturers; violations committed or incidents relating to such 
violations, if any; agreements with other industry participants, such as for cross-
filling and similar arrangements; list of lost, stolen or missing LPG cylinders; and 
such other relevant information as may be determined by the DOE. 
The central database shall be created by the DOE 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 subject to 
reasonable fees and charges and ~uring office hours. 
SEC. 15. 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 prior to 
commencement of commercial operations and annually thereafter. For those 
subject to Section 7 (b), (c), and (d) which requires a accreditation or certificate of 
conformity to PNS issued by the DTI, submission of the such accreditation or 
certificate of conformity shall be a requirement prior to the issuance of a Standards 
Compliance Certificate by the DOE. 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 and other pertinent 
government agencies; Provided, that such other endorsements by other 
government agencies applicable to the particular classification of the industry 
participant as defined and stated in this Act shall have been fully complied with: 
Provided further, That, a brand owner shall be responsible for the following: 
1) proper manufacture, maintenance, and re-qualification 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 plantls 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 and 
secure the proper Standards Compliance Certificate from the DOE for the said 
new activity or business, where deemed necessary by the DOE. 
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 Chapter may be submitted through 


registered mail, without prejudice to the conduct of a standards compliance 
inspection. 
(b) Persons or Entities Already Engaged III LPG Business. - Subject to the 
provisions of Section 31 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. 
(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) Required Submissions for Standards Compliance 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: 
1) Certification of compliance of applicant's facilities with fire safety laws an 
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 prpvisions of Republic Act No. 9514, otherwise 
known as the Revised Fire Code of the Philippines of 2008 , and/or pamphlet 58 of 
the National 
Fire Protection Association (NFPA 58), otherwise known as the 
"Liquefied Petroleum Gas Code" and 
6) Accreditation or certificate of conformity to PNS issued by DTI as 
provided under Section 7 (b), (c) and (d) of this Act. 
7) Such other documents or requirements as the DOE 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. 16. Certificate of Accreditation for Manufacturers, Re-qualifiers, 
Repairers of LPG Cylinders and Cylinder Seal Manufacturers - Prior to the 
commencement of its operations and annually thereafter, any person who intends 
to engage in the business of manufacturing, re-qua1 ifying, 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 re-qualification, 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. 17. 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) Frequency of Standards Compliance Inspection. - The DOE may, motu 
propio or upon a verified statemenfor 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 Compliance 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. 
(e) Power to Deputize. - The DOE may deputize such government agencies 
it deems necessary to assist its functions as provided in this Section. 
SEC. 18. Requirement for Business Permit. - The Standards Compliance 
Certificate provided under Section 15 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. 19. 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 ofthe 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) serial/tracking no. of brand owner 
7) total price of the transaction; and 
8) such other information as may be prescribed by the DOE with the 
concurrence of 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) serial/tracking no. of brand owner 
6) net weight or weight of the LPG contained in the cylinder; 
7) unit price per cylinder; 
8) total price of the transaction; and 
9) 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. 20. Declaration of LPG Cylinder as Injurious, Unsafe or 
Dangerous. - 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. 21. Procedure for Petition for Declaration of LPG Cylinder as 
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 ~nd order the recall, prohibition or seizure of the 
LPG cylinder. 
SEC. 22. Recall, Seizure, Impoundment 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 re-qualification processes to render the same compliant with 
appropriate PNS, or, where repair or re-qualification 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 re-qualification. 
SEC. 23. 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 initially adopt and enforce the rules for disposition 
of recalled, banned or seized cylinders established by the DTI; Provided further, 
That it may amend the same when it deems necessary. 
SEC. 24. Weighing Devices. 
(al 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 to officially calibrate the same. The weighing devices shall accurately 
measure LPG cylinders up to one-tenth (0.1 I of one kilogram. 
(b) Checking of LPG Cylinder Content by 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. 25. 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 a 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. 26. Labeling Requirements 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 Cylinder Collar. - All LPG cylinders, whether manufactured 
locally or imported, shall have the following embossed or stamped on the cylinder 
collar: 
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 re-qualification; 
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. 27. Delivery Vehicles, DHvers and Attendants. - All trucks and 
other vehicles used for transporting and delivering LPG cylinders shall be open 
and the same shall be registered with the DOE, in accordance with the guidelines 
to be promulgated by the DOE, in consultation with the industry participants and 
other concerned agencies. 
All haulers shall display on their delivery trucks or vehicles a prominent 
DOE sign age. Failure to register the delivery vehicle shall give rise to a 
presumption that the vehicle is not duly authorized to transport LPG. 
Vehicles not registered and without the appropriate DOE signage shall be 
seized or impounded by the DOE. 
Guidelines for the accreditation of drivers and attendants for LPG delivery 
vehicles shall be prescribed by the DOE upon prior consultation with the industry 
participants and other concerned government agencies. 
SEC. 28. 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 dealers under this Act. 
SEC. 29. LPG Cylinder Exchange, Swapping and Rehabilitation. - The DOE, in 
consultation with the DTI, LPG industry participants, concerned government 
agencies and other stakeholders, shall formulate a program and issue the 
appropriate rules necessary to govern the practice of exchanging, swapping and 
rehabilitation of cylinders in the trade of LPG, including appropriate sanctions for 
violation thereof. 
This Section shall be subject to the following; 
1. Cylinder Exchange, Swapping and Rehabilitation shall be governed by 
the following principles and standards: 
(a) Ensuring the safety of the cylinder for the benefit of the consumer shall 
be the priority concern; Provided, that any procedure in the cylinder exchange, 
swapping and rehabilitation system, which may increase significantly the retail 
costs of a LPG cylinder, shall be' subject to conSUltations with consumer groups 
and industry partiCipants by the DOE. 
(b) No procedure in the cylinder exchange, swapping and rehabilitation 
system shall be permitted if it results to unfair trade practices that unduly benefits 
one industry participant over another. 
(c) The cylinder exchange, swapping and rehabilitation system shall take 
into consideration the following factors: 
i. The prevailing economic conditions of the LPG industry, including but not 
limited to, the supply of LPG including the levels of import and domestic production 
of LPG adjusted for applicable foreign exchange rates, the demand for LPG 
including the levels of household and bulk use, as well as the prevailing prices of 
LPG, among others; 
ii. The number of LPG cylinders and ancillary equipment, classified into its 
usability and cost effectiveness; 


• 
iii. The developments jn LPG safety technology and the' energy sector in 
general; 
iv. The statistics and other information on the level of injuries from LPG 
related incidents as well as safety compliance by each and all industry 
participants; 
v. Such other factors that may affect the viability of the LPG industry 
particularly on its safety and affordability. 
2. The DOE shall conduct a study that will examine the viability and 
practicality of the establishment of the practice of cylinder exchange, swapping 
and rehabilitation between LPG industry participants. The DOE shall issue a 
decision based on this study which shall implement the mandate stated in this 
Section. This study shall be completed within one hundred and eighty (180) days 
from the effectivity of this Act. 
3. All LPG industry participants shall cooperate with the DOE in the 
implementation of cylinder exchange, swapping and rehabilitation programs to 
ensure that only duly qualified cylinders are put in circulation. 
CHAPTER IV 
QUALITY STANDARDS 
SEC. 30. 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 formtllated by the DT!. The quality standards 
shall provide for, but not be limited to, th following: 
(a) Primary Storage Facilities; .. 
(b) Cylinder-Filling Plants and Facilities; 
(c) Bulk-Loading, Unloading and Transportation of LPG; 
(d) Dealers and Retail Outlets; 
(e) Service Stations. 
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 further, That nothing in 
this Chapter will allow licensees for refilling plants, dealers, and retailers to sell 
ancillary equipment not recommended by the cylinder brand owner: Provided, 
finally, 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. 
CHAPTER 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 as required under Chapter III of 
this Act shall be penalized with a fine of Five Thousand Pesos (Php5,000.00) for 
an individual and Ten Thousand Pesos (Php10,000.OO) 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(Php5,000,000.00) for an 
individual and Ten Million Pesos (Php10,000,000.) for a corporation. 
SEC. 32. Engaging in Business .Without Accreditation. - Any person 
who engages in the business of manufacturing cylinder seals or of re-qualifying, 
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 (Php3,000.00) for an individual and Five Thousand 
Pesos (Php5,000.00) 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 (Php5,000,000.00) for an individual and Ten Million Pesos 
(Php10,000,000.00) for a corporation. 
SEC. 33. Obstruction of Inspection. - Any industry participant who 
refuses, prevents or obstructs the inspection of its premises and records as 
provided under Chapter III of this Act shall be penalized with a fine of Three 
Hundred Thousand Pesos (Php300,000.00) for an individual and Five Hundred 
Thousand Pesos (Php500,000.00) for a corporation, for each instance of violation. 
SEC. 34. Failure to Post Standards Compliance Certificate. - An 
industry participant who fails or refuses to post its Standards Compliance 
Certificate as required under Chapter III of this Act and as required by the DOE, 
shall be penalized with a fine not exceeding Five Thousand Pesos (Php5,000.00) 
for each instance of violation. 
SEC. 35. 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 (Php5,000.00) for each 
instance of violation. 
SEC. 36. 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 Chapter III of this Act shall, upon conviction, 
be penalized with a, fine of not less than Twenty Thousand Pesos (Php20,000.00) 
but not more than One Hundred Thousand Pesos (Php100,000.00), 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 the second and subsequent violations 
shall be penalized with both fine and imprisonment as provided herein. 
SEC. 37. 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 (Php50,000.00) but 
not more than One Million Pesos (Php1,000,000.00) 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 (Php5,OOO.OO) for an individual or 
Ten Thousand Pesos (Php10,OOO.OO) 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 
(Php500,000.00) 
for 
an 
individual 
and 
One 
Million 
Pesos 
(Php1,000,000.00) 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. 38. 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 (Php10,000.00).for an individual and Twenty Thousand Pesos 
(Php20,000.00) 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 
(Php500,OOO.00) for an individual and One Million Pesos (Php 1,000,000.00) for a 
corporation. 
SEC. 39. 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 (Php5,000.00) for an 
individual and Ten Thousand Pesos (Php10,000.00) 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, further, That the maximum fine to be imposed shall be Five Hundred 
Thousand 
Pesos 
(Php500,000.00) 
for 
an 
individual 
and 
One 
Million 
Pesos(Php1 ,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. 
SEC. 40. 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 
a evidenced by a written contract or similar instmment; 


(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, re-qualification 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 usmg 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 
0) 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 ofTen Thousand Pesos 
(Php10,OOO.00) for an individual and Twenty Thousand Pesos (Php20,OOO.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 imprisotfment: Provided, further, That the maximum fine to be imposed shall 
be Five Million Pesos. (Php5,OOO,OOO.00) for an individual and Ten Million Pesos 
(Php1 0,000,000.00) for a corporation. 
SEC. 41. 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 and/or 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 
(Php3,OOO.00) for an individual and Six Thousand Pesos (Php6,OOO.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, further, That the maximum fine to be imposed shall be 
Three Hundred Thousand Pesos (Php300,OOO.00) for an individual and Six 
Hundred Thousand Pesos (Php600,OOO.00) for a corporation. 
SEC. 42. 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-Iabeling, by any 
person other than the cylinder owner shall, upon conviction, be penalized with a 
fine of Five Thousand Pesos (Php5,000.00) for an individual and Ten Thousand 
Pesos (Php10,000.00) 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 discretior 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 
(Php5,000,000.00) 
for 
an 
individual 
and 
Ten 
Million 
Pesos 
(Php10,000,000.00) for a corporation. 
SEC. 43. 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 (Php5,000.00) for an 
individual and Ten Thousand Pesos (Php10,000.00) 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 (Php5,000,000.00) for an individual and Ten Million Pesos 
(Php1 0,000,000.00) for a corporation. 
SEC. 44. Failure to Comply with Weighing Device Requirements. - A 
refiner, importer, refiller, dealer or retail butiet who fails to comply with the 
requirements pertaining to weighing devices under Chapter III, shall be penalized 
with a fine of Ten Thousand Pesos (Php10,000.00) for an individual or Twenty 
Thousand Pesos (Php20,000.00) for a corporation. 
SEC. 45. 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 
(Php20,000.00) 
for 
an 
individual 
and 
Forty 
Thousand 
Pesos 
(Php40,000.00) 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. 46. Importation of Used or Second-Hand LPG Cylinders. - Any 
person who imports used or second-hand LPG cylinders or containers shall, upon 
conviction. Be penalized with a fine of at least One Hundred Thousand Pesos 
(PhP100,000.00) or Three Thousand Pesos (PhP3,000.00) per cylinder or 
container, whichever is higher, and imprisonment of at least six (6) years and one 
(1) day to twelve (12) years. 
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 (Php100,000.00) but not more than Five Hundred Thousand Pesos 
(Php500,000.00) 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. Pilferage of LPG. - Any person who pilfers LPG, upon conviction, 
shall be penalized with a fine of One Million Pesos (Php1,000,000.00) for an 


individual and Two Million Pesos (Php2,OOO,OOO.OO) 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(Php5,OOO,OOO.OO) for an 
individual and Ten Million Pesos (Php10,OOO,OOO.OO) for a corporation. 
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 of Twenty Thousand Pesos 
(P20,OOO.00) up to Five Hundred Thousand Pesos (P500,OOO.00) for each offense 
in this Chapter and such other violations of this Act. 
SEC. 51. "Strike Three" Penalty. - 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. Publication 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 bewithout prejudice to any liability for violation of any provision of the Revised 
Penal Code, Republic Act No. 9514, otherwise known as the "Revised Fire Code 
of the Philippines of 2008," Republic Act No. 8293, otherwise known as the 
"Intellectual Property Code of the Philippines," and other applicable laws. The 
fines provided in this Chapter shall be without prejudice to any other legal claims 
or damages which any injured party suffers as a result of any of the enumerated 
prohibited acts under this Chapter. 
CHAPTER VI 
EDUCATION AND RESEARCH 
SEC. 55. 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; 
(b) 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 ip.stalled only by qualified 
servicemen as provided in this Act, 
SEC. 56. Public Infonnation Canpaign. - 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. 57. 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. 
CHAPTER VII 
FINAL PROVISIONS 
SEC. 58. Implementing Rules and Regulations. - Unless otherwise 
provided in this Act, the DOE, in consultation with the DTI, other appropriate 
agencies, the LPG industry participants, and consumer groups shall be the lead 
agency with the responsibility to formulate and issue the necessary implementing 
rules and regulations within one hundred eighty (180) days from the effectivity of 
this Act. 
SEC. 59. 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 one hundred eighty (180) days from 
the effectivity of this Act, within which to comply with the provisions hereof: 
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 15 of this 'Act, shall not be required to obtain a Standards 
Compliance Certificate for the duration of the grace period. 
SEC. 60. Legal Assistanc;e to Public Officials. - Public officials or other 
authorized persons acting under the direction of the Secretaries of the DOE, the 
DTI, the DILG and other concerned government agencies shall be provided with 
free legal assistance, liability insurance and other forms of protection and 
indemnification for all costs and expenses reasonably incurred by such persons, in 
connection with any civil or criminal action, suit or proceeding to which they may 
be or have been made a party by reason of the performance of their functions or 
duties, unless they are finally adjudged in such action or proceeding to be liable for 
gross negligence or misconduct or grave abuse of discretion. 
SEC. 61. Separability Clause. - If for any reason, any chapter, section or 
provision of this Act shall be declared unconstitutional, illegal or invalid, such parts 
not affected thereby shall remain in full force and effect. 
SEC. 62. Repealing Clause. - All laws, decrees, executive orders, 
proclamations and administrative regulations, or parts thereof inconsistent 
herewith are hereby repealed or modified accordingly. 


SEC. 63. Effectivity Clause. - This Act shall take effect after fifteen (15) 
days after its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation. 
Approved,