Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila

SIXTEENTH CONGRESS ra x
Third Regular Session

House Bill No. 6121

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

Based on studies Metro Manila’s air pollution problem is caused
primarily by vehicular emissions, mostly coming from diesel engines. While so
much attention has been given to lack of engine maintenance as the culprit,
the role of fuel quality has escaped the scrutiny of regulators and policy
makers

‘The unwitting use of institutionally adulterated diesel (IAD) in transport
vehicles, particularly buses, trucks and jeepneys, is the primary and major
cause of smoke belching.

Under Section 1(B) of Presidential Decree 1865, adulteration of refined
petroleum products, or possession of adulterated refined petroleum products
for the purpose of sale, distribution, transportation, exchange or barter is a
prohibited act.

This bill seeks to increase the penalties for prohibited acts stated in
Presidential Decree 1865 to ensure that the policy of state is strictly observed.

In view thereof, early consideration and approval of this bill is earnestly
sought.

|ALDO V. UMALT
Representative
Second District, Province of Oriental Mindoro



Republic of the Philippines

HOUSE OF REPRESENTATIVES

CONGRESS OF THE PHILIPPINES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Third Regular Session

House Bill No, 6121

Introduced by Honorable REYNALDO V. UMALI

AN ACT INCREASING THE PENALTIES FOR CERTAIN PROHIBITED
ACTS WHICH ARE INIMICAL TO THE PUBLIC INTEREST AND PUBLIC
SAFETY INVOLVING PETROLEUM OR PETROLEUM PRODUCTS,
AMENDING FOR THE PURPOSE SECTIONS 3-A AND 4 OF BATAS
PAMBANSA BILANG 33, AS AMENDED BY PRESIDENTIAL DECREE NO.
1865

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the “Oil Anti-
Adulteration Act of 2015.”

SEC. 2. Declaration of Policy, ~ It is hereby declared to be the policy of
the State to promote and protect the right of the people to public health and
safety and instill health consciousness among them. Towards this end, the
State shall adopt and implement a policy mandating the importation,
production, distribution, marketing and sale of environmentally clean and

safe fuels to promote the general welfare and public interest.

SEC. 3, Section 3-A of Batas Pambansa Bilang 33, as amended by
Presidential Decree 1865, is hereby amended to read as follows:

“Sec. 3-A, Rules and Regulations; Administrative Sanctions for
violation thereof. The [Bureau of Energy utilization) DEPARTMENT OF
ENERGY shall issue such rules and regulations as are necessary to carry
into effect the provisions of this Act, subject to the approval of the [Minister]
SECRETARY of Energy, after consultation with the affected industry sectors.



— lll ——— =

Said rules and regulations shall take effect fifteen (15) days from the date of
its publication in two (2) newspapers of general circulation.

“The [Bureau of Energy utilization] DEPARTMENT OF ENERGY is
empowered to impose in an administrative proceeding, after due notice and
hearing, upon any person who violates any provisions of such rules and
regulations, a fine of not more [ten thousand pesos (P10,000.00)] ONE
HUNDRED THOUSAND PESOS (P100,000.00) or to suspend or remove the
license or permit of [a] AN OIL IMPORTER, REFINER, hauler, marketer,
refiller, dealer, sub-dealer, or retail outlet: Provided, That hearing in any
administrative proceedings may be waived by respondent: Provided, further,
That during the pendency of such administrative proceedings, the [Bureau]
DEPARTMENT may suspend the business operations of such OIL
IMPORTER, REFINER, hauler, marketer, refiller, dealer, sub-dealer, or retail
outlet operator when the suspension is consistent with the public interest.
Administrative proceedings shall be decided within thirty (30) days after
filing of the last responsive pleading by the respondent, or termination and
completion of the administrative proceedings.

“All law enforcement and other concerned agencies of the government
shall assist the [Bureau of Energy utilization) DEPARTMENT OF ENERGY in
the implementation of this section.

“The administrative sanction that may be imposed shall be without

prejudice to the filing of a criminal action as the case may warrant.

SEC. 4. Section 4 of the same Act, as amended by Presidential Decree 1865,
is hereby amended to read as follows:

“SEC. 4. Penalties. Any person who commits any act herein
prohibited shall, upon conviction, be punished with a fine of not less than
[twenty thousand pesos (P20,000.00) THREE HUNDRED THOUSAND.
PESOS (P300,000.00) but not more than [fifty thousand pesos (P50,000.00)]
FIVE HUNDRED THOUSAND PESOS (P500,000.00), or imprisonment of at
least [two (2)] THREE (3) YEARS but not more than [five (5)] SIX (6) years, or
both, in the discretion of the court. In cases of second and subsequent

conviction under this Act, the penalty shall be both fine and imprisonment


as provided herein. Furthermore, the petroleum and/or petroleum products,
subject matter of the illegal trading, adulteration, shortselling, hoarding,
overpricing or misuse, shall be forfeited in favor of the Government:
Provided, That if the petroleum and/or petroleum products have already
been delivered and paid for, the offended party shall be indemnified twice
the amount paid, and if the seller who has not yet delivered has been fully
paid, the price received shall be returned to the buyer with an additional
amount equivalent to such price; and in the addition, if the offender is an oil
company, OIL IMPORTER, OIL REFINER, marketer, distributor, refiller,
dealer, sub-dealer and other retail outlets, or hauler, the cancellation of his

license.

SEC. 5. Repealing Clause. ~ All laws, decrees, orders, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed or amended
accordingly.

SEC. 6. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) national newspapers of
general circulation.

Approved,