Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
IMPOSING CIVIL PENALTIES ON UNREASONABLE PRICE INCREASES FOR 
CRUDE OIL, RESIDUAL FUEL OIL, OR REFINED PETROLEUM PRODUCTS 
The Constitution, Article XVI, provides: 
Section 9. The State shall protect consumers from trade malpractices and 
from substandard or hazardous products.  
From the vehicles we drive to the equipment we use, our society relies on gasoline to 
fuel our lives. The high demand for this commodity and recent fluctuations in its price 
warrant a closer look at the issue of predatory pricing. 
This bill seeks to impose civil penalties on unreasonable price increases for crude oil, 
residual fuel oil, or refined petroleum products. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
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March 23, 2021
1:13 PM


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
IMPOSING CIVIL PENALTIES ON UNREASONABLE PRICE INCREASES FOR 
CRUDE OIL, RESIDUAL FUEL OIL, OR REFINED PETROLEUM PRODUCTS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress 
assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Fuel Pricing Fairness Act.” 
SECTION 2. Declaration of Policy. – It is the policy of the State to protect consumers 
from trade malpractices and from substandard or hazardous products. 
SECTION 3. Definition of Terms. – For the purposes of this Act, the term: 
(A) “E “Energy-producing company” means a person engaged in:
(1) Ownership or control of mineral fuel resources or non-mineral energy 
resources;
(2) Exploration for, or development of, mineral fuel resources;
(3) Extraction of mineral fuel or non-mineral energy resources;
(4) Refining, milling, or otherwise processing mineral fuel or non-mineral energy 
resources;
(5) Storage of mineral fuel or non-mineral energy resources by any means 
whatever; or 
(6) Wholesale or retail distribution or mineral fuels, non-mineral energy resources 
or electrical energy;
(B)  “Unreasonable  price  increase”  means  any  price  increase  that  exceeds  any 
concurrent increase in the production or operation cost of the energy-producing 
company that are directly related to the products being sold.
(C) “Ene “Energy industry” means all energy-producing companies.
(D) “Cru “Crude Oil” means a naturally-occurring substance found trapped in certain rocks 
below the earth's crust. It is a dark, sticky liquid which, scientifically speaking, is 
classed as a hydrocarbon. It is highly flammable that can be burned to create energy.
(E) “Res “Residual Fuel Oil” means a liquid or semi-liquid, high-boiling fraction of residue 
from the distillation of petroleum which is used as a fuel.
(F) “R “Refined Petroleum Products” means are derived from crude oils through 
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processes such as catalytic cracking and fractional distillation. These products have 
physical and chemical characteristics that differ according to the type of crude oil and 
subsequent refining processes. These include gasoline, kerosene, LPG, No. 2 Fuel 
Oil, No. 4 Fuel Oil, No. 5 Fuel Oil (Bunker B), and No. 6 Fuel Oil (Bunker C). 
(G) “LPG” - Liquefied Petroleum Gas. 
(H) “DOE” means Department of Energy. 
(I) “DTI” means Department of Trade and Industry. 
 
SECTION 4. Civil Penalty for Unreasonable Price Increase for Crude Oil, Residual 
Fuel Oil, or Refined Petroleum Products. — 
(A) In General. — Not later than three (3) months after the date of enactment of this 
Act, the Department of Energy Secretary, in coordination with the Department of 
Trade and Industry Secretary, shall issue regulations that —  
(1) Apply to all crude oil, residual fuel oil, and refined petroleum products that are 
sold and used as energy fuel in the Philippines; 
(2) Prohibit any unreasonable price increase for such products by an 
energy-producing company; and 
(3) impose a civil penalty of not less than One Million Pesos (P1,000,000.00) but 
not more than Ten Million Pesos (P10,000,000.00) for each unreasonable price 
increase. 
(B) Determination of Unreasonable Price Increase. – The DOE, in coordination with 
the DTI, shall determine at least annually whether any energy-producing company 
has implemented an unreasonable price increase in violation of regulations issued 
under paragraph (1) of this Section.  
 
 
SECTION 5. Separability Clause. – If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
 
SECTION 6. Repealing Clause. – Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or 
inconsistent with, the provision of this Act is hereby repealed, modified, or amended 
accordingly.  
 
SECTION 7. Effectivity Clause. – This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
 
Approved,