SIXTEENTII CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.B. NO. 2399 
) 
) 
) 
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Introdnced by Senator Maria Lourdes Nancy S. Binay 
AN ACr 
,srm.lh 
\Oliff, uf tlie,,:i"ml.t~
14 S£P-8 Ptj:18 
ISIAIlLlSIIIN(j THI REGULATORY FRAMEWORK FOR TIlE SAFE OPLRATIONS 
OF TIlL 1,IQlJlFilcD PETROLEUM GAS (LPG) INDUSTRY, DELINlAI E TIlE 
POWERS AND FUNCTIONS OF VARIOUS GOVERNMENT AGENCIES, DEFINE AND 
PENALIZE CERTAIN ACTS, AND FOR OTHER PURPOSES 
FXPLANATORY NOTE 
I'he regulations herc'in proposed arc essential in pro\'iding sare conditions for the liquclicd 
petroleum gas (LPG) industry, The key provisions of this bill address concerns arising Ii'om 
all aspects 0(' the LPG industry by: 
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rcgulnting the operation or LPG Industry participants and ensuring that peNlllS or 
cntities engaged In any LPC; related business have the capacity, needed rCSOUI'CCS, and 
knoll·hm\ to ensure safe and eflicient opcratiom: 
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providing safe conditions for the operation of the LPG industry; 
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cnsuring thal substandard and potentially harmful cylindcrs are taken olT the market 
thruugh thc 1,1'(; Cyllndcr L,chan~e and Replacement Program: and 
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ensuring that cumpliance \\'lth the regulations and standards imposed on the indllstr~ 
arc elTeClivcl) implemcnted and properly monitored and superviscd, 
For this purpose, the bill defines thc roles of variOLtS government agencies having the 
capacity and resources to efliciently and effeetiyely implement the proposed bill, 
The 
Dcpartmcnt of Energy (DOL) shall be the implementing agency and granted such additional 
pO\\L'rS and functions as rna) be necessary ror the purpose of giving eflcct to the ]'1\\.. The 
[)Cpal'tl11Cnt 01' 'I racie and Industry CDTI), considering the interest of consumers and thc 
Dcpartment or Interior Local Government CDlLG), bearing in mind the significant role of 
local government units, al'e likewise granted significant roles in the implementation of the 
proposed bill. 
'\S a ciirc'ct COl1';c''lucncc of the propo'ial to r(gulLliC thc indus\!\, It i'i (,:pceted that thc 
rcl()rms "ill uplill the cOlllmcrcial conditiuns oJ' the I.PC; industl') and "III enCOUrLIgc' 
emploYl11ent generation, For Instance, the swapping, exchange, and rehabilitatioll program 


· 
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will encourage the manufacture of better quality LPG equipment. This is a labor-intensive 
undertaking which will likely increase domestic employment. 
Recent developments in the House of Representatives regarding il1e LPG industry bill are 
ref1ected under the proposed bill as of date of filing. 
In view of the foregoing, the passage of this bill is earnestly recommended, 
Senator 
2 


.' 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
-SrwItr 
(Orft~t 01111' ~rn~t.G. 
Second Regular Session 
SENATE 
S.B. NO. 
2399 
Introdnced by Senator Maria Lourdes Nancy S. Binay 
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AN ACT 
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ESTABLISI-IlNG THE REGULATORY FRAMEWORK FOR THE SAFE OPERA nONS 
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OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, DELINEATE THE 
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POWERS AND FUNCTIONS OF VARIOUS GOVERNMENT AGENCIES, DEFINE AND 
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PENALIZE CERTAIN ACTS, AND FOR OTHER PURPOSES 
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Be il enacted by the Senate and House of Representatives of the Philippines in Congress 
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assembled: 
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CHAPTER I 
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GENERAL PROVISIONS 
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SEC.I. Short Title. This Act shall be known as the "LPG Industry Regulation and Safety 
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Act of2014," 
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SEC. 2. Declaration of Policy. It is hereby declared the policy of the state to protect the 
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interests of consumers, ensure their general welfare and to establish standards of conduct fo'r 
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business and industry, 
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Towards this end, the state shall: 
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a) Establish a regulatory 
framework 
for 
the importation, 
refining, 
refilling, 
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transportation, distribution and marketing of liquefied petroleum gas (LPG), and the 
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manufacture, requalification, exchange, swapping or improvement of LPG cylinders; 
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b) Establish standards of conduct and codes of practice for LPG businesses; and 
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c) Address quality and safety concerns and uphold the right of consumers to freely 
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choose the LPG brand they want to purchase, 
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SEC. 3. Scope and Application. This act shall apply to the importation, refining, refilling, 
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transportation, distribution and marketing of LPG, the manufacture, requalification, 
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exchange, swapping or improvement of LPG cylinders and safe operations of the LPG 
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industry, which cover all activities and businesses related to LPG products for household, 
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commercial, industrial or automotive use (Auto-LPG) and cylinders or containers for LPG, 
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SEC. 4. Definitio/t of Terms. For the purposes of this Act, the following terms are defined 
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herein below: 
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(a) 
(b) 
(c) 
(d) 
(e) 
(I) 
(g) 
(h) 
(i) 
OJ 
"A,ccreditation" shall, refer to the formal recognition of competency given by the 
PhllIppll1e Accreditation Bureau (PAB) of the Department of Trade and Industry 
(DTI) that a re-qualifier of LPG cylinders has complied with the existing Philippine 
Natlonal Standards (PNS) prescribing the General Requirements for the Competence 
of Testing and Calibration Laboratories, the Method of Requalification of Steel 
Cylinders for LPG and any other applicable PNS; 
"Alteration" shall refer to any act of converting, transforming or resizing of local or 
imported LPG cylinder or container from its original size or design including, but not 
limited to, replacement or removal of existing and embossed or stamped registered 
brand owner's markings, grinding, flattening, application of putty, replacemenl of 
collar, revalving, unauthorized repainting, replacement of foot rings, re-Iabeling, etc'" 
or by any other means; 
"Ancillary Equipment" shall refer to such equipment, parts and other devices and 
accessories necessary and indispensable for the safe and proper operation of an LPG 
cylinder or container such as, but not limited to, LPG cylinder or container valves, 
hoses and regulators; 
"Auto-LPG" shall refer to LPG intended to fuel, propel or otherwise provide power to 
motor vehicles; 
"Auto-LPG Dispensing Station" shall refer to an outlet, facility or business 
establishment which retails Auto-LPG directly to individual end-users or to the 
motoring public; thc same may stand alone or located within or operated with a 
liquefied petroleum product (LPP) retail outlet. It shall be deemed a dealer or retail 
outlet for purposes of this Act; 
"Brand Owner" shall refer to a person owning the brand name, logo, color, mark or 
distinction as registered with the Intellectual Property Office of the Philippines 
(IPOPH); 
"Bulk Consumer" shall refer to any person, whose regular use or consumption of LPG 
is limited to its own use and reqnires bulk storage of LPG at a volume as may be 
determined by the Department of Energy (DOE); 
"Bulk Supplier" shall refer to any person, who engages in the sale or distribution of 
LPG in large quantities as may be determined by the DOE; 
"Canister or Cartridge" shall refer to any portable pressure vessel or container 
designed or intended for LPG, with water capacity of less than that of an LPG 
cylinder; 
"Centralized LPG Distribution System" shall refer to a network of pipes or similar 
conduit usc for the conveyance of LPG from the piped LPG provider to ~onsumers 
confined within the same compound or establishment such as, but not hmlted to, 
shopping malls and condominiums; 
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(k) 
(I) 
(111) 
(n) 
(0) 
(p) 
(q) 
(r) 
(s) 
(1) 
(u) 
(v) 
"C~rtification" shall refe~ to the written assurance given by the DTJ that the LPG 
cyltnder has complted wIth the existing PNS or any other standards issued by the 
Bureau 0 f Product Standards (BPS) pursuant to Republic Act No 4109 
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, govelllll1g 
specIficatIons and reql1lrcments for the repair of steel cylinders for LPG; 
"Consumer" shall refer to any person, who purchases LPG for one's own 
consumption; 
"Container" shall refer to any portable pressure vessel for the storage of LPG for 
automotIve use; 
"Cross Filling" shall refer to the filling of LPG cylinders by a person, other than by 
the brand owner; 
"Cylinder" or "LPG cylinder" shall refer to any portable pressure-vessel or container 
for LPG, designed for the transportation and storage of LPG; 
"Cylinder Owner" shall refer to the owner of (he cylinder as shown by the brand, 
mark, trade name or business name embossed or engraved or otherwise permanently 
indicated on the LPG cylinder in the manner prescribed by the DTI; 
"Dealer" shall refer (0 any person involved in the sale or trading of LPG in cylinders 
to consumers and/or retail outlets; 
"Defective Cylinder" shall refer to damaged, unsafe and dilapidated LPG cylinders 
due to corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar 
defects that render the LPG cylinder unsafe, injurious or dangerous for distribution in 
accordance with the guidelines set by the DTI, thus creating a substantial risk of 
injury to the public; 
"Hauler" shall refer to any person, involved in the distribution and delivery of LPG 
cylinders from one place to another; 
"Importer" shall refer to any person engaged in the importation of LPG whether for 
processing, sale or own use; 
"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 existing PNS or any other standards 
prescribed by the BPS; 
"LPG Industry Participants" shall refer to persons, engaged in activities or businesses 
related to: 
1. 
refining, manufacturing, importing, exporting, shipping, transporting, hauling, 
storing, refilling, distributing, marketing and selling of LPG for household, 
commercial or industrial, and automotive (auto-LPG) use; or 
ii. manufacturing, importing, transporting, distributing and selling of LPG cylinders 
and ancillary equipment including, but not limited to, LPG cylinder or container 
and ancillary equipment manufacturers and importers, re-qualifiers, repairers, 
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(y) 
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scr~pping centers, LPG cylinder or container seal manufacturers and such other 
s1l11llar persons or entities; 
"Marketer" shall refer to any person, engaged in the sale of LPG, whether in bulk or 
retail under its own brand name' , 
:'P~rson" 01: "person" shall refcr to an entity such as an individual or group of 
1l1dlVIduals 1l1corporated, registered or formed under Philippine laws; 
"Philippine National Standards" or "PNS" shall refer to the standards promulgated by 
the BPS of the DTI relating to product specifications, test methods, terminologies and 
standardization procedures, guidelines or practices; 
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(z) 
"Piped LPG Provider" shall refer to any person, engaged in the business of supplying 
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or distributing LPG to consumers through a Centralized LPG Distribution System, 
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including operators of central storage compounds for piped LPG or reticulated system 
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facilities; 
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(aa) 
"Reiiller" shall refer to (I) a service provider authorized by an LPG cylinder owner to 
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refill LPG cylinders on the latter's behalf, or (2) any person, who refills LPG into 
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one's own LPG cylinders; 
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(bb) 
"Refilling Plant" shall refer to any installation that is used for refilling LPG into 
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cylinders and has LPG bulk storage and refilling facilities thereof; 
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(cc) 
"Refiner" shall refer to any person, who refines LPG through distillation, conversion 
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and treatment of crude oil and other naturally occurring petroleum hydrocarbons; 
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(dd) 
"Re-qualilication" shall refer to the method or procedure by which an LPG cylinder is 
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subjected to inspection and re-evaluation in accordance with the prescribed 
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specifications and any other standards prescribed governing the method of 
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requalilication of steel cylinders for LPG to determine its acceptability for continuous 
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use and distribution and subsequent repair or scrappage, where appropriate; 
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(ee) 
(ff) 
"Re-qualifier" shall refcr to any person, duly accredited by the DTI pursuant to this 
Act to engage in the business of re-qualifying LPG cylinders; 
"Repair" shall refer to the removal from 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, 
distribution and use; 
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(gg) 
"Repairer" shall refer to any person, duly certified by the DTI to engage 1ll the 
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business of repairing LPG cylinders; 
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(hh) 
"Retail Outlet" shall refer to any entity that sells LPG in cylinders directly to a 
consumer in quantities as may be determined by the DOE; 
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"Retic~lated System': shan ref~r to a means of supplying LPG through a pipeline 
netwOlk flOm a centmhzed cylmder bank or bulk instaJJation to multiple customers 
sItuated 111 a common locality; 
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"Scmppage" shall refer to the destruction of defective LPG cylinders declared by a re-
qualIfier of the DTI to be unfit for usc' , 
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(kk) 
"Seal" shan reier to the protective cover placed on the valve of an LPG cylinder; and 
(ll) 
"Tare weighC' shall refer to the net weight of the LPG cylinder excluding its contents, 
as engraved m the collar and painted in the body thereof and shall be expressed in 
lolograms 111 accordance with the specifications as may be prescribed by the DT!. 
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CHAPTER II 
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IMPLEMENTING AGENCIES 
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SEC. 5. Lead Agency. The DOE shall be the primary government agency responsible for the 
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implementation and enforcement of this Act unless otherwise stated. 
The DOE shall 
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regulate, supervise and monitor the LPG industry and persons and entities engaged in any 
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activity or business therein to ensure compliance with the national product quality, 
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environmental and worker safety arid consumer welfare standards. 
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SEC. 6. Additional Powers and Functions of the DOE. In addition to its powers and 
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functions under existing laws, the DOE shan have the following powers and functions: 
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a) Administer and supervise the enforcement and implementation of this Act; 
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b) Implement safety standards prescribed by the DOE or set in the PNS promUlgated by 
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the I3PS for refilling plants, depots, storage areas, transportation facilities and other 
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facilities or business premises of the owners thereof and retail outlets, and exercise 
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reasonable visitorial powers in order to inspect and evaluate whether such refilling 
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plants, depots, storage areas, transportation facilities and other facilities or business 
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premises and retail outlets comply with such safety standards. During such inspection, 
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the DOE may scrutinize the records of the concerned LPG Industry Participants; 
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c) Inspect LPG cylinders in circulation, whether filled or unfilled, which are for 
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distribution and sale to dealers retail outlets and end-consumers to determine 
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conformity with established quality and safety standards for LPG cylinders developed 
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and established by the I3PS; 
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d) Confiscate and impound immediately after the conduct of inspection or investigation 
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substandard, defective, unsafe, injurious or dangerous LPG and LPG cylinders, or 
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those that are found in violation of the provisions of this act or in commission of any 
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of the prohibited acts under this Act or do not conform to established quality and 
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safety standards for LPG cyliners developed and established by the BPS, as well as 
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underfilled and illegally refilled LPG cylinders as defined in this Act; 
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e) Investigate, motu proprio or upon report of any person, possible inti'actions of this 
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Act by any person, initiate the necessary criminal or administrative actions warranted 
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under the circllmstances, enforce administrative sanctions or penalties as provided 
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under this Act, and file the necessary complaints with the proper court or government 
agency; 
f) 
Implement tbe Philippine LPG Cylinder Improvement Program as provided in this 
Act; 
g) Direct LPG brand owners, to periodically submit cylinders for requalification, and to 
secure proper proof of compliance therewith in accordance with the requirements of 
the DTI; 
h) Issue and grant Licenses to Operate to qualified LPG Industry Participants in 
accordance with the implementing rules and regulations to be issued by the DOE, and 
suspend or revoke the same, after due notice and hearing, for committing any of the 
prohibited acts under Chapter X this Act; 
i) Issue closure or cease-and-desist orders, as the case may be, to any concerned LPG 
Industry Participants found to have committed any of the prohibited acts under 
Chapter X of this Act; 
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Impose and collect administrative fines against LPG Industry Participants found to 
have committed any ofthe prohibited acts under Chapter X ofthis Act; 
k) Create and maintain a central database of LPG Industry Participants, and an inventory 
of existing and projected LPG supply levels in the country subject to the limitations 
set out in Section 26 of this Act, which shall be updated monthly on its own initiati'-ce 
or through reports of LPG Industry Participants; 
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Investigate and keep a record of incidents of injury or damage to person or property, 
caused by or attributable to the improper production, refilling, storage, handling or 
dispensing or use of LPG for purposes of prosecuting or filing the appropriate 
administrative or criminal complaints against responsible persons; 
m) 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 orthe tanks; 
n) Dispose LPG and LPG cylinders in accordance with the guidelines on disposal of 
LPG or LPG cylinders promulgated by the DOE; 
0) Inspect and evaluate LPG cylinder seals and confiscate seals not complying with 
standards and regulations including those in illegal possession or use; and 
p) Exercise such other powers and functions as may be necessary or incidental to attain 
the objectives of this Act 
SEC. 7. Powers and Functions of the DT1, The DTI shall have the following exclusive 
powcrs and fimctions: 
(a) 
Develop, formulate, promulgate, review and revise, as may be necessary, 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 the PNS and their fitness for public and sale 
distribution; 
(c) 
Inspect and evaluate ancillary equipment, whether manufactured locally ~r 
imported and certify to their conformity to PNS and their fitness for publIc 
sale and distribution; and 
(d) 
Grant accreditation and certification of conformity to PNS to re-qualifiers, 
repairers, LPG cylinder manufacturers and other indep~nde~t, co~npetent, 
private persons and entities that provide products and serVices mvolvmg LPG 
cylinders and revoke the same, if warranted, 
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SEC.. 8. Powers and Functions of the DIL G. To help effectively implement the provisions 
of thl~ Act, the Depmtmcnt of Intenor and Local Government (DILG) shall have the 
follow111g powers and functions: 
(a) 
Coordinate with local government units (LGUs) and the Philippine National 
Pohc~ (PNP), 111 close. coordination with the DOE and DTI, for the orderly and 
effectIve ImplementatIOn of this Act and of the orders, rules and regulations 
and issuances pursuant thereto; 
(b) 
Coordinate and cooperate with the DOE and the DTI in the conduct of 
information dissemination to the LGUs and the PNP; and 
(c) 
Extend all the necessary assistance to the DOE with respect to the enforcement 
of measures to attain the objectives of this Act. 
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SEC. 9. Powers and Functions of LGUs. 
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(a) 
(b) 
The LGUs shall assist the DOE 111 providing an area for impounded LPG 
cylinders; and 
The LGU shall immediately suspend or revoke the business permit or license of 
an LPG Industry Participant upon the issuance by the DOE of a notice of 
suspension or revocation of the License to Operate of such LPG Industry 
Participant in accordance with Chapter II! of this Act. 
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SEC. 10. Powers and Functions of the PNP. The PNP shall, upon request of the DOE or the 
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DTI, provide security to life and property during the conduct of operations for the 
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implementation of this Act, such as but not limited to, the confiscation of LPG cylinders 
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found in violation of the prohibited acts under Chapter X of this Act, and during the transport 
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of the confiscated LPG cylinders to the impounding area: Provided, that the PNP shall not, by 
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itself, conduct LPG inspections without request from the DOE and DTI, nor confiscate LPG 
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cylinders unless duly authorized by a warrant issued by the courts. 
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SEC. 11. LPG Monitoring and Enforcement Task Force. 
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(a) 
No later than six (6) months from the effectivity of this Act, the DOE shall 
establish the LPG Monitoring and Enforcement Task Force with the following 
members: 
1. 
The Secretmy of the DOE as Chairman; 
II. 
The Secretary of the DILG and Secretary ofDTI as members; 
iii. 
Such other representatives of other government agencies as may be 
determined to be appropriate by the Chairman; 
IV. 
Representatives from LPG Industry Participants as may be determined to 
be appropriate by the Chairman; and 
v. 
Such other representatives from the private-sector entities as may be 
determined to be appropriate by the Chairman. 
(b) 
The LPG Monitoring and Enforcement Task Force shall have the following 
powers and functions: 
1. 
assist the DOE in monitoring and compliance standards inspection as 
provided in this Act; and 
II. 
exercise such other powers and functions necessmy to give force and 
effect to this Act, its implementing rules and regulations, and such other 
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(c) 
rules issued by the DOE from time to time, as may be determined by the 
DOE 111 consultatIOn wIth the LPG IndustJy Participants. 
Prior to the creation of the LPG Monitoring and Enforcement Task Force or 
whenever the DOE deems necessary, the DOE may deputize such o;her 
government agencies it deems necessary to assist in the effective discharge of its 
functIons provIded under Section 18 and Section 27 of this Act. 
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CHAPTER III 
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LICENSES, PERMITS AND OTHER BUSINESS REQUIREMENTS 
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SEC. 12. License to Operate. 
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(a) 
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(b) 
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(c) 
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Requirement Prior to Engaging in Business. Any person intending to engage in any 
activity or business involving LPG shall secure a License to Operate from the DOE 
prior to commencement of construction and commercial operations. The License to 
Operate shall be valid for a period of three (3) years or any such period as may be 
determined by the DOE. For pUl]Joses of this Act, the License to Operate shall certify 
that such person or entity has complied with all the documentary requirements and 
safety rules and regulations prescribed by the DOE and other pertinent government 
agencies. 
No person or entity intending to engage in any activity or business involving LPG 
shall engage in business without first having duly secured a License to Operate from 
the DOE. Any such person or entity that subsequently engages in an activity or 
business outside of the scope of its License to Operate shall duly notify the DOE and 
secure the proper License to Operate ti'om and where deemed necessary by the DOE 
for such new activity or business. 
The DOE shall prescribe specific guidelines for compliance of retail outlets, dealers 
and haulers in remote areas outside Metro Manila. 
An LPG Industry Particip811t who has a License to Operate shall transact business 
only with a LPG Industry Participant who likewise has a License to Operate. 
Persons or Entities Already Engaged in LPG Business. Subject to the provisions of 
Section 42 of this Act, any person already legally engaged in any activity or business 
involving LPG shall obtain a License to Operate within six (6) months from 
effectivity of this Act in accordance with the rules, regulations, and guidelines to be 
issued by the DOE. 
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SEC. 13. Certificate of NOli-Coverage (CNC). Any person or entity whose principal business 
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requires consumption of LPG in bulk and which business operation does not include, in any 
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way, the distribution or retail of LPG to conslimers, such as but not limited to garage-based 
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Auto-LPG stations, centralized LPG distribution systems, shall secure a CNC from the DOE. 
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For purposes of this Act, a Garage-Based Auto-LPG operation shall refer to the operation of a 
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motor vehicle Heet with a number of vehicle units as may be determined by the DOE and 
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which vehicle units are parked and serviced in a confined area or garage. The DOE shall 
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prescribe such other conditions in order that an Auto-LPG dispensing activity shall be 
deemed as a garage-based operation, 
Bulk suppli,ers shall ensure that their bulk consumers have secured the necessary CNC prior 
to en(enng m(o any supply contract or agreement with said bulk consumers, A copy of such 
contract shall be submItted to the DOE within thirty (30) days from the execution thereof. 
The CNC does not in any way preclude compliance with applicable PNS, requirements of the 
BFP and other concerned government agencies, 
SEC. 14. Suspension or Revocation of License to Operate. The DOE shall likewise have the 
power to suspend or revoke, after due notice and hearing, the License to Operate of any 
person engaged in any activity or business involving LPG for the commission of any of the 
prohibited acts under Chapter X of this Act. 
SEC. 15. MandatOlY Requirement Prior to LGU's Issuance or Renewal of Local 
Government Business License or Mayor's Permit. The L TO provided under Section 12 of 
this Act shall be a mandatory reqilirement for thc grant or renewal of any LGU business 
license or Mayor's permit to engage in business involving LPG 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. 16. Action of LGUs on Suspended or Revoked License to Operate. Upon receipt of 
written notice by the DOE of suspension or revocation of the License to Operate of a 
concerned LPG Industry Participant, the LGU shall immediately suspend or revoke the LGU 
business license or Mayor's permit of said LPG Industry Participant. The LGU shall formally 
communicate to the DOE the fact of such sLlspension or revocation within five (5) working 
days ii'om receipt of the written notice of revocation of License to Operate from the DOE, 
SEC. 17. Certificate of Accreditation for Manufacturers, Requalifiers, Repairers of LPG 
Cylinders and Manufacturers, Prior to the commencement of its operations and annually 
thereafter, any person who intends to engage in the business of manufacturing, re-qnalifying, 
or repairing LPG cylinders, shall obtain a Certificate of Accreditation from the DTI. Any 
person already engaged in the business of re-qualification, repair, upon the effectivity of this 
Act shall apply for a Certificate of Accreditation from the DTI. 
37 
Any person already engaged in the business of fe-qualification, repair, scrappage of LPG 
38 
cylinder and seal manufacturing upon the effectivity of this Act shall apply for a Certificate 
39 
of Accreditation from the DT!. 
40 
41 
42 
CHAPTER IV 
43 
AUTO-LPG 
44 
45 
SEC. 18. Retailing of Auto-LPG. Any person who is operating or intending to operate an 
46 
Auto-LPG Dispensing Station shall comply with the requirements as may be provided in the 
47 
implementing rules and regulations of this Act. 
48 
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CHAPTER V 
OWNERSHIP OF LPG CYLINDERS AND CONTAINERS FOR AUTOMOTIVE USE 
SEC. 19. Owners~ip of LPG Cylinders. The LPG Brand Owner whose permanent mark 
appears on the LPG cylmder shall be presumed the owner thereof, irrespective of the party in 
custody or posseSSlOn ot the LPG cylinder. Permanent marks refer to the embossed trade or 
brand name of the registered owner thereof as prescribed by the DTI for LPG cylinders. 
The rights ~nd obligations of LPG Brand Owners shall be provided in the implementing rules 
and regulatlOns of thIs Act. The LPG Brand Owner shall have the obligation to ensure that its 
LPG cylinders comply with all the 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 LPG Brand Owner regarding any lost, stolen or missing LPG 
cylinders shall prima facie relieve the LPG Brand Owner of the obligation to ensure the 
quality and safety of such LPG cylinders. Such report may be rebutted by contrary evidence. 
17 
SEC. 20. Ownership of LPG Containers for Automotive Use. Containers of LPG for 
18 
automotive use are permanently installed inside the vehicles and are therefore inherent and 
19 
integral parts of the vehicle. As such, ownership of these containers is that of the vehicle 
20 
owner. 
21 
22 
23 
CHAPTER VI 
24 
MONITORING AND ENFORCEMENT MECHANISMS 
25 
26 
SEC. 21. Reports and Disclosures to the DOE. Subject to the limitations in Section 22 
27 
below, the DOE, as the case may be, shall have the power and authority to require concerned 
28 
LPG Industry Participants to submit written, electronic or other form of reports or 
29 
disclosures, as the DOE may deem reasonable and necessary to perform their functions under 
30 
this Act. Any LPG Industry Participant who fails to submit any such report or disclosure 
31 
within the period and in the marmer prescribed by the DOE shall be penalized under Section 
32 
31 of this Act. 
33 
34 
SEC. 22. Central Database of LPG IndustlY Participants. The DOE shall, within one (1) 
35 
year from the effectivity of this Act, create the central database. The central database shall be 
36 
updated 011 a monthly basis. Subject to the limitations provided herein, information in the 
37 
central database shall be made available to the public and through the Internet upon payment 
38 
of reasonable fees and charges and during office hours. The central database of LPG Industry 
39 
Participants shall include their corporate or business name or trade name; a list of all directors 
40 
and officers; principal office or business address; primary purpose or nature of business; 
41 
registered brand name or logo for LPG, LPG cylinder, facilities and equipment; violations 
42 
committed or incidents relating to such violations, if any; agreements with other LPG 
43 
Industry Participants, such as for cross-filling and similar arrangements; list of lost, stolen or 
44 
missing LPG cylinders; and such other relevant information as may be determined by the 
45 
DOE. 
46 
47 
The foregoing provisions notwithstanding, the right of concerned LPG Industry Participants 
48 
against undue disclosure of information is expressly recognized, and as such: 
49 
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(a) Unl~ss necessary for ensuring the safe operations of the LPG industry, the DOE may 
l:ot lequlle flom the LPG Industry Paltlclpants the disclosure of intellectual property 
ughts, trade secrets and propnetary data or other legitimate commercial information 
whlch are confidential or privileged in nature; 
(b) Any informatio.n, documents, pl~ns and other matters disclosed necessary for ensuring 
the safe operatlO.ns of the LPG mdustry which constitute intellectual property, trade 
secrets or propnetary data or other legitimate commercial information which are 
confidential and/or privileged in nature, shall not be disclosed by the DOE or any 
other person havmg access thereto to other LPG Industry Participants or to the public; 
and 
13 
(c) The provIsions of Republic Act No. 8293, otherwise known as the "Intellectual 
14 
Property Code of the Philippines" and other laws insofar as applicable shall continu~ 
15 
to apply to information, documents, plans and other matters disclosed pursuant to this 
16 
Act. 
17 
18 
19 
CHAPTER VII 
20 
DECLARATION OF LPG CYLINDER AS DEFECTIVE, INJURIOUS, UNSAFE OR 
21 
DANGEROUS 
22 
23 
SEC. 23. Declaration of LPG Cylinder as Defective, injurious, Unsafe or Dangerous. 
24 
When the DOE or DTI, as the casc may be, finds, motu proprio or upon petition of any 
25 
person, that an LPG cylinder is defective, injurious, unsafe or dangerous, it shall, after due 
26 
notice, issue the appropriate order for its immediate confiscation, recall, seizure, 
27 
impoundment or prohibition from public sale or distribution, in which case the LPG cylinder 
28 
owner shall be afforded a hearing within forty-eight (48) hours fi-om issuance of such order, 
29 
for the purpose of determining the propriety of the recall and seizure of the LPG cylinders: 
30 
PrOVided, that such a declaration shall be limited to instances when the LPG cylinder is 
31 
already filled and already sealed inside a refilling plant, dealer's showroom, retail outlets, or 
32 
LPG cylinder transporter: Provided, jilrther, that the DOE or DTI shall, within thirty (30) 
33 
days from termination of administrative proceedings, make a final determination as to 
34 
whether or not an LPG cylinder is defective, injurious, unsafe or dangerous. 
35 
36 
Filled LPG cylinders that are found by the DOE or DTI to pose all imminent threat or danger 
37 
of exploding shall be disposed of without the necessity of serving prior notice to the owners 
38 
thereof. The DOE or DTl shall notify the violator, owner or respondent of such fact within 
39 
five (5) days after such disposition. 
40 
41 
SEC. 24. LPG in Canisters or Cartridges. It shall be unlawful for any person to refill, sell, 
42 
trade or distribute LPG in single-trip tin canister or cartridge that is intended or labeled as for 
43 
one time use only, not designed or intended for LPG, not in compliance with existing PNS, or 
44 
in the absence of a PNS, without the express consent, approval, or conformity of the DTI. 
45 
46 
47 
CHAPTER VIII 
48 
TRANSPORT OF LPG IN CYLINDERS 
49 
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SEC.. 25. Transport of LPG in Cylinders. The DOE, together with other government 
agencies, shall. Issue appropriate guidelines for the transport of LPG in cylinders. The LPG 
Industry Part1clpant~ shall. not allo,:" any vehicle used for the transport of LPG in cylinders to 
enter Its prelTIlSeS, rncludll1g refillll1g plants, depot or warehouses, unless such vehicle has 
complied with the requirements of the DOE for the transport of LPG in cylinders. For the 
transport of LPG in cylinders to households, the LPG Industry Participants shall only use 
vehIcles that meet the requirements prescribed by the DOE, as well as those o[ the 
Department of Transportation and Communication (DOTC), Department of Pnblic Works 
and Highways (DPWI-I) and the concerned LGU s. As proof of compliance, the Certificate of 
Road :v orthiness from the Land Transportation Office (LTO) or the Land Transportation 
Franchlsmg and Regulatory Board (L TFRB) shall be presented as additional docUl11entary 
requirement for the issuance and renewal of a License to Operate. 
Vehicles carrying, transporting or delivering LPG and which are not registered and without 
the appropriate DOE signage shall be seized or impounded by the DOE. The guidelines for 
the accreditation of drivers and attendants [or LPG delivery vehicles shall be prescribed by 
the DOE upon prior consultation with the LPG Industry Participants and other government 
agencies concerned. 
CHAPTER IX 
PHILIPPINE LPG CYLINDER IMPROVEMENT PROGRAM 
24 
SEC. 26. Philippine LPG Cylinder Improvement. A Philippine LPG Cylinder Improvement 
25 
Program shall be implemented with the objective of safeguarding and ensuring the safety of 
26 
consumers. The DOE shall, upon prior consultation with the LPG Industry Participants and 
27 
other concerned government agencies, determine the mechanics, rules and regulations for the 
28 
Philippine LPG Cylinder Improvement Program. 
CHAPTER X 
PROHIBITED ACTS, FINES AND PENALTIES 
29 
30 
31 
32 
33 
34 
SEC. 27. Engaging in Business Wit/lOut License to Operate. Any LPG Industry Participant 
35 
who engages in business without secming a License to Operate from the DOE as required 
36 
under this Act shall be penalized with a fine of Five Thousand Pesos (Php5,000.00) for each 
37 
day o[ operation without a License to Operate: Provided, that the maximum fine to be 
38 
imposed shall be Five hundred thousand pesos (Php500,OOO.00) for an individual and One 
39 
Million Pesos (Php 1,000,000.00) for a corporation. 
40 
41 
SEC. 28. Engaging in Business Without Accreditation. Any person who engages in the 
42 
business of manufacturing LPG cylinder seals or of fe-qualifying, repairing 01' scrapping LPG 
43 
cylinders without first securing a certificate of accreditation from the DTI as provided under 
44 
this Act, shall be penalized with a fine of One million Pesos (Phpl,OOO,OO.OO). 
45 
46 
SEC. 29. Refusal or Obstructioll of Inspection Any LPG Industry Participant who refnses, 
47 
prevents or obstructs the inspection of its premises and records as required under this Act 
48 
shall be penalized with a fine of Three Hundred Thousand Pesos (Php300,000.00) for the first 
14 


1 
violation, Five Hundred Thousand Pesos (Php500,000.00) for the second violation and 
2 
revocation of the License to Operate for the third violation .. 
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24 
SEC. 30. Failure to Post License to Operate. Any LPG Industry Participant concerned who 
f~lls or refuses to post its License to Operate shall be penalized with a fine of not exceeding 
Five thousand pesos (Php5,000.00) for each instance of violation. 
SEC. 31. Failure to Submit Reportorial Requirements. Any LPG industry participant 
concerned who fails to submit periodic reports as may be required under existing laws 
particularly Republic Act No. 8479 by the DOE, within a reasonable period and in the 
manner prescribed by the DOE, shall be penalized with a fine of Ten Thousand pesos 
(Php 10,000.00) in case of an individual and Twenty Thousand pesos (Php20,000.00) in case 
of a partnership or corporation. 
SEC. 32. Illegal Storage. Any refiner, importer, refiller, hauler, dealer, retail outlet or bulk 
consumer who stores LPG in bulk without obtaining a License to Operate or Certificate of 
Non-Coverage as required under 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 (Php 100,000.00). 
. 
SEC. 33. Failure to Comply with Product Standards. Any concerned LPG 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: 
25 
a) 
Non-compliance with DOE mandatory requirements on safety designs for refilling 
plants, equipment, depots, centralized LPG distribution systems and similar facilities 
shall be penalized with a fine of not less than Fifty Thousand Pesos (Php50,OOO.OO) 
but not more than Five Hundred Thousand Pesos (Php500,OOO.OO). For this purpose, 
the DOE shall formulate a tahle of penalties to deternline the imposition of the 
minimum and the maximum penalty. Provided, that nothin g in this paragraph shall 
preclude the DOE from ordering the closure of the facility until such time thai the 
mandatory requirements have becn met; llild 
26 
27 
28 
29 
30 
31 
32 
33 
b) 
34 
35 
36 
37 
38 
39 
Failure to secure the required PNS Certificate for LPG cylinders shall be penalized 
with a fine of Five Thousand Pesos (Php5,OOO.OO) for each non-complillilt LPG 
cylinder used and distributed to consumers: Provided, that the maximum fine to be 
imposed shall be Five Hundred Thousand Pesos (Php500,OOO.OO) for an individual 
and One Million Pesos (Phpl,OOO,OOO.OO) for a corporation: Provided, further, that 
this section shall apply only after the full implementation of the Philippine LPG 
Cylinder Improvement Program. 
40 
41 
SEC. 34. Adulteration. LPG-filled cylinders found to be mixed with another finished or 
42 
unfinished petroleum product or stock or with any non-petroleum substance or material that 
43 
will result in product quality change or in the failure of the LPG to meet the required product 
44 
specifications of the DOE shall render the person in possession thereof prima facie liable for 
45 
violating this provision and shall, upon conviction, be penalized with a fine Five Thousand 
46 
Pesos (Php5,OOO.OO) for each LPG cylinder containing adulterated LPG: Provided, that the 
47 
maximum fine to be imposed shall be Five Hundred Thousand Pesos (Php500,OOO.OO) for an 
48 
individual and One Million Pesos (Phpl,OOO,OOO.OO) for a corporation. 
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SEC.. 35. Underfllling. When the net quantity of LPG contained in LPG cylinders 
ll1tentlOnally sold, transferred, dchvered or filled by refillcrs is less than the LPG cylinder 
content required by the DOE at the filling plant, the refiller shall, upon conviction, be 
penalized with a fine of Five Thousand Pesos (Php5,000.00) for each underfilled LPG 
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 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 (Phpl,OOO,OOO.OO) [or a corporation. When the net quantity of LPG in cylinders 
intentionally sold, transferred, or delivered by dealers or retail outlets is three tenths of one 
kilogram (0.30 Kg) less than the DOE-required LPG cylinder content quantity, the dealers or 
retail outlets shall be penalized with the same fines mentioned earlier in this paragraph: 
Provided, finally, that when the net quantity of LPG cylinders sold, transferred or delivered 
by dealers or retail outlets is at least five hundred (500) grams less than the DOE-required 
LPG cylinder content quantity, the said cylinders shall be confiscated outright and the 
refillers, dealers or retail outlets thereof shall be penalized with the aforementioned penalties. 
18 
The following shall be considered as primafacie evidence of under filling: 
19 
20 
(a) 
21 
(b) 
22 
23 
24 
A broken, tampered, absent or removed seal; or 
An LPG 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. 
25 
SEC. 36. Illegal Refilling. The following shall constitute illegal refilling of LPG cylinders 
26 
under this Act: 
27 
28 
a) 
29 
30 
31 
b) 
32 
33 
34 
c) 
35 
36 
d) 
37 
38 
e) 
39 
40 
1) 
41 
42 
g) 
43 
44 
h) 
45 
46 
i) 
47 
Refilling of LPG cylinder by a person or entity other than the Brand Owner thereof, 
unless an express permission is granted by the Brand Owner for such refilling as 
evidenced by a written contract or similar instrument; 
Refilling of LPG cylinder with a braDd, trademark, trade name or registered business 
name other than that of the brand owner indicated on the LPG cylinder tank, 
otherwise called "pirate filling" or "cross-filling"; 
Refilling of LPG cylinder beming defaced, tampered or illegible markings contrary to 
the mandatory labelling and stamping requirements under this Act; 
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 DOE; 
Filling of LPG cylinder directly from LPG tank trucks WIthout the use of approved 
filling machines; 
. '  
Refilling LPG from one LPG cylinder to another without usmg the prescnbed 
equipment; 
Backyard refilling of LPG cylinder other tlmn in properly designed LPG refilling 
plants; 
. 
Filling LPG cylinder with products or substances other than LPG 111 an effort to 
achieve the correct net weight; 
. 
. 
Refilling of LPG cylinders for household or commercial use by Auto-LPG DISpenSll1g 
Stations; 
16 


1 
j) 
2 
Refilling of LPG into single-trip or tin canister or cartridge not designed or intended 
for LPG or not in compliance with existing PNS or, in the absence of a PNS, without 
the express consent, approval or conformity of the DTI; 
3 
4 
k) 
5 
Any o.ther refilling of LPG ~ylindcrs in violation of the mandatory requirements or 
prescnbed standards under thiS Act; and 
6 
1) 
Unauthorized loading of bulk LPG tanks in industrial accounts. 
7 
An LPG Industry Participant found guilty of illegal refilling under this section shall, upon 
conviclion, be penalized with a fine of Five thousand pesos (Php5,OOO.OO) for each illegally-
filled or refilled 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 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.OO) for an individual and 
One Million Pesos (Phpl,OOO,OOO.OO) for a corporation: Provided, finally, that illegally 
refilled LPG cylinders described in sub-paragraphs (c), (d), (e), (t), (g), (h) and (i) above shall 
be confiscated outright and the refillers, dealers or retail outlets thereof shall be penalized 
with the aforementioned penalties. 
SEC. 37. Hoardil1g. Any concerned LPG Industry Participant who, before a price increase or 
in times of tight supply, unduly accumulates LPG products beyond his normal inventory 
levels and unreasonably limits or refuses to dispose of, sell, or distribute LPG products to the 
general public, even if the buyer or consumer has the ability to pay in cash for the LPG 
products, shall, upon conviction, be penalized with a fine of at least One hundred thousand 
pesos (PhplOO,OO.OO) but not more than One million pesos (Phpl,OOO,OOO.OO) and 
imprisonment of at least six (6) months but not more than two (2) years. 
The determination of said participant's usual inventory shall be reckoned from the third Ord) 
month immediately preceding the discovery of the stocks in case said participant has been 
engaged in the business for at least three (3) months. Otherwise, it shall be reckoned from the 
time he started his business. 
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32 
For purposes of this Act, it shall be considered as prima facie evidence of hoarding when the 
33 
following conditions concur: 
34 
35 
a) 
said LPG Industry Participant has stocks of LPG products fifty percent (50%) higher 
than his inventory capacity; and 
36 
37 
38 
b) 
said LPG Industry Participant unreasonably limits, refuses or fails to sell the same to 
the general public at the time of discovery of the stocks. 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
SEC. 38. Unauthorized Trading of LPG Cylinders. Any concerned LPG Industry Participant 
who without the consent of the LPG Brand Owner, stores sells empty LPG cylinders in 
exc:ss of those allowed by the DOE, tlu'ough LPG cylinder swapping and other similar 
industry practices and exchanges, barters, sells, distributes or otherwise transfers o.wnership 
or possession thereof to a person or entity other than the LPG Brand Owner and Without the 
authority of the LPG Brand Owner shall, upon conviction, be penalized with a fine. of Five 
Thousand Pesos (Php5,OOO.OO) for each illegally-stored or sold empty 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 subsequent violations shall be penalized with both fine 
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and imprisonment: Provided, further, that the maximum fine to be imposed shall be Five 
Hundred Thousand Pesos (PhpSOO,OOO.OO) in case of an individual and One Million Pesos 
(Php I ,000,000.00) in case of a corporation. 
SEC. 39. Ta/~lperil1g ofL~G cylinders and Similar Acts. Any person wbo destroys, tampers, 
alters or .modIfies LPG cylInders through any means such as, but not limited to, changing the 
LPG cylInder valve, repainting and re-labelling, by any person other than the LPG cylinder 
owner shall, upon conviction, be penalized with a fine of Five thousand pesos (PhpS,OOO.OO) 
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 subsequent 
violations shall be penalized with both fine and imprisonment: Provided, further, that 
subsequent violations shall be penalized with both fine and imprisonment: Provided, finally, 
That the maximum line to be imposed shall be Five Hundred Thousand Pesos 
(Php500,000.00) for an individual and One Million Pesos (Phpl,OOO,OOO.OO) for a 
corporation. 
17 
SEC. 40. Illegal Possession of LPG Cylinder Seal. Any person found in possession of LPG 
18 
cylinder seals, including the seals already used in the LPG cylinders without authority from 
19 
the LPG cylinder owner or its anthorized refiller shall, upon conviction, be penalized with a 
20 
fine of Five Thousand Pesos (PhpS,OOO.OO) for each LPG seal found in its or his possession: 
21 
Provided, that the maximum fine to be imposed shall be Five Hundred Thousand Pesos 
22 
(PhpSOO,OOO.OO) [or an individual and One Million Pesos (Phpl,OOO,OOO.OO) for a 
23 
corporation. 
24 
25 
SEC. 41. Failure to Comp(y with Weighing Device Requirements. Any refiner, importer, 
26 
refiller, dealer or retail outlet who fails to comply with the requirements pertaining to 
27 
weighing devices as required by the DOE and DTI, shall be penalized with a fine of Ten 
28 
Thousand Pesos (PhplO,OOO.OO) in case of an individual or Twenty Thousand Pesos 
29 
(Php20,000.00) in case of a corporation. 
30 
31 
SEC. 42. Over/oading. Any hauler who loads and transports or permits the loading and 
32 
transportation of LPG cylinders quantities greater than the rated capacity of the vehicle or in 
33 
such a manner that endangers the life and safety of its passengers or the public, shall be 
34 
penalized with a fine of Twenty thousand pesos (Php20,000.00) in case of an individual and 
35 
Fifty thousand pesos (Php50,000.00) in case of a corporation: Provided, that the penalties 
36 
provided herein shall be without prejudice to its liability under other laws for any damage or 
37 
inj ury to person or property. 
38 
39 
SEC. 43. Importation of Used or Second-Hand LPG Cylinders. Any person who imports 
40 
used or second-hand LPG cylinders or containers, without securing authority to import from 
41 
the DTI, shall, upon conviction, be penalized with a fine of One Hundred Thousand Pesos 
42 
(PhpIOO,OOO.OO) or Five thonsand pesos (Php5,000.00) per LPG cylinder or container 
43 
whichever is higher and imprisonment of at least six (6) months and one (I) day to two (2) 
44 
years. 
45 
46 
SEC. 44. Sale or Distribution to Non-compLying Persons or Entities. Any LPG Industry 
47 
Participant who knowingly sells or distributes LPG products, LPG cylinders or LPG seals to 
48 
persons or entities committing any of the prohibited acts provided in (his Act and in such 
49 
other issuances or orders to be issued by the DOE or the DTI as the case may be, shall upon 
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conviction, be penalized for each sale or distribution with a fine of not less than One Hundred 
Thousand Pesos (Php I 00,000.00) but not more than Five Hundred Thousand Pesos 
(Php500,000.00) or ~mprisonmcnt of at least six (6) months but not more than two (2) years, 
or both at the d,scretlOn of the court. 
SEC.. 45. l~iifer~ge of LPG. Any person who pilfers LPG shall, upon conviction, be 
penalIzed WIth a i1ne of Five Hundred Thousand Pesos (Php500,000.00) for an individual and 
One Million Pesos (Phpl,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 
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 (Phpl,OOO,OOO.OO) for a 
corporation. 
15 
SEC. 46. Sale or Distribution of LPG-:filled Cylinders Without Seals. Any person, brand 
16 . 
owner, its authorized refiller, dealer or retail outlet who sells or distributes LPG-filled 
17 
cylinders without seal, with tampered or broken seals, or with seal not belonging to the Brand 
18 
Owner shall, be penalized with a fine of not less than Five Thousand Pesos (Php5,000.00) for 
19 
each LPG cylinder or imprisomnent of at least six (6) months but not more than two (2) 
20 
years, or both, at the discretion of the court: Provided, That the maximum line to be imposed 
21 
shall be Five Hnndred Thousand Pesos (Php500,000.00) for an individual and One Million 
22 
Pesos (Phpl,OOO,OOO.OO) for a partnership or corporation. 
23 
24 
SEC. 47. Refusal to Refund the Deposit. Any LPG Brand Owner, its authorized dealer or 
25 
retail outlet that refuses to refund the deposit on the LPG cylinder to any consumer shall be 
26 
administratively chaJ'ged and upon proper proof, shall be imposed a fine of One Thousand 
27 
Five Hundred Pesos (Phpl,500.00) for each LPG cylinder and a warning that its LTO shall be 
28 
suspended or revoked: PrOVided, that subsequent violations thereof shall be imposed a fine of 
29 
Five Thollsand Pesos (Php5,OOO.00) per LPG cylinder and the suspension and revocation of 
30 
its License (0 Operate. 
31 
32 
SEC. 48. Sale of LPG in Single-trip (non-refillable) Container 01' Canister. Any person 
33 
who sells or distributes LPG in single-trip (non-refillable) containers or canisters which has 
34 
been previollsly filled with butane, or not designed or intended for refillling of LPG due to 
35 
non-compliance with PNS or not certified or allowed by the DTI shall be shall be penalized 
36 
with a fine of not less (han Five Thousand Pesos (1'111'5,000.00) for each LPG cylinder or 
37 
imprisonment or at least six (6) months but not more than two (2) years, or both, at the 
38 
discretion of the court: Provided, That the maximum fine to be imposed shall be FIve 
39 
Hundred Thousand Pesos (Php500,000.00) for an individual and One Million Pesos 
40 
(Phpl,OOO,OOO.OO) for a partnership or corporation. 
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42 
43 
SEC. 49. Otlter Proltibited Acts. The following acts shall likewise be declared unlawful: 
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45 
46 
47 
48 
a) Sale and distribution to or transactions with an LPG Industry PaJ'ticipant who has no 
License to Operate; 
. 
b) Manufacture sale or distribution of LPG cylinders to the local market WIthout the 
necessary PS marks and other markings as required by the PNS and its future 
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amendments or the detailed standard governing LPG cylinder manufacture, 
requalification and repair; 
c) Sale and distribution of LPG cylinders considered substandard as defined by the PNS; 
d) 
lv!m~ufacture. or sale of LPG cylmders carrying a brand name, logo, mark or 
dIstmctlon wIthout the express approval of the registered brand owner; 
e) Manufacture of LPG cylinders using substandaI'd or non-industrial steel plates; 
i) Wrong or misleading information stamped on the LPG cylinder such as the tare 
weight; and 
g) Knowingly selling illegally-filled or refilled LPG cylinders by marketers, dealers or 
retarI outlets; 
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A fine of at least Five Hundred Thousand Pesos (PhpSOO,OOO.OO) but not more than On~ 
13 
million pesos (Php 1,000,000.00) and imprisonment of at least six (6) yem's and one (1) day to 
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twelve (12) years shall be imposed on any person, firm, paI'tnership or corporation fowld 
15 
guilty of committing any of the other prohibited acts enumerated above. 
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17 
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SEC. 50. "Strike Three" Penalty. Any person convicted or found administratively liable 
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with finality of committing any prohibited act [or three (3) instances shall be perpetually 
20 
disqualified from engaging in any activity in the LPG industry. 
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SEC. 51. Publication of Persons Convicted of Violations of this Act. The DOE shall, on a 
23 
quarterly basis, publish in a newspaper of general circulation, the names of LPG Industry 
24 
Participants found liable for prohibited acts in Chapter X of this Act. 
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SEC. 52. Violations by Juridical Entities. If the violation is committed by a corporation, 
27 
partnership, association or other juridical entity, the penalty of imprisonment shall be 
28 
imposed on the responsible directors or officers thereof. Any new juridical entity formed by 
29 
persons (or agents of such persons) previously found in violation of the prohibited acts under 
30 
Chapter X of this Act shall not be eligible for any License to Operate by the DOE. If the 
31 
offender is an alien, he shall be depOlied immediately, without further proceedings, after 
32 
service of sentence. 
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36 
CHAPTER XI 
EDUCATION AND RESEARCH 
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38 
SEC. 53. Usage Requirements for Customers and End-Users. The DOE and the DTl shall 
39 
jointly undertake educational and information dissemination activities to enhance customer 
40 
awareness among LPG consumers and end-users. In addition to such educational program, 
41 
the DOE and the DT!, after consultation with the LPG Industry Participants, may prescribe 
42 
rules and regulations in relation to the following: 
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44 
(a) 
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(b) 
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(c) 
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48 
49 
For industrial or large end-users, installation of sign at storage facilities; 
Use of only branded, legally-filled and certified LPG cylinders; and 
Installation of LPG appliances and devices approved by the DTl: Provided, that such 
appliances and devices shall be installed only by qualified servicemen as provided in 
this Act. 
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SEC. 54. Development Research. The DOE shall, in coordination with the DOST and the 
DTl,. c.onduct study and research for the purpose of developing more efficient methods of 
provldmg safe. clean and hazard-free LPG consumers. 
6 
CHAl)TER XII 
7 
FINAL PROVISIONS 
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SEC. 55. Implementing Rules and Regulations. Unless otherwise expressly provided in this 
10 
Act, the DOE shall, in consultation with the DTI, other appropriate agencies, the LPG 
11 
Industry Participants and the other appropriate agencies be the lead agency to formulate, issue 
12 
and promulgate the necessary implementing rules and regulations within sixty (60) days from 
13 
the effectivity of this Act. The implementing rules and regulations shall cover, among others, 
14 
gUidelines and standards for LPG weighing devices, cylinder sealing, labeling requirements, 
15 
qllality standards and delivery vehicles, drivers and attendants. 
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SEC. 56. Transition Phase. The DOE shall, upon prior consultation with the LPG Industry 
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Participants and other government agencies and taking into account data obtained from LPG 
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Industry Participants and other sources, determine the appropriate period for the transition 
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phase to allow for compliance by all LPG Industry Participants with the objectives of this 
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Act. 
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SEC. 57. Appropriations. The amount of Two Billion Pesos (Php2,000,OOO,OOO.OO) annually 
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for the first five (5) years of the implementation of this Act is hereby appropriated out of the 
25 
Malampaya Fund being administered by the DOE. Thereafter, the same shall be included in 
26 
the regular budget of the DOE in such amounts as may be necessary to fully implement the 
27 
Philippine LPG Cylinder Improvement Program. 
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SEC. 58 . .Joint Congressional Oversight Committee. There is hereby created a Joint 
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Congressional Oversight Committee to monitor the implementation of this Act. The 
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committee shall be composed of three (3) senators and three (3) representatives to be 
32 
appointed by the Senate President and the Speaker of the House of Representatives, 
33 
respectively. The oversight committee shall be jointly chaired by the Chairmen of the Senate 
34 
Committees on Energy and Trade and Commerce and the House Committees on Energy and 
35 
Trade and Industry: Provided, that the Minority in both the Senate and the House of 
36 
Representatives shall be equitably represented therein. 
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The mandate given to the Joint Congressional Oversight Committee under this Act shall be 
39 
without prejUdice to the performance of the duties and functions by the respective existing 
40 
oversight committees oCthe Senate and the House of Representatives. 
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SEC. 59. Construction and Interpretation. Any doubt in the interpretation of any provision 
43 
in this Act shall be interpreted in favor of the interests of the consumers particularly to ensure 
44 
access to reasonably priced LPG and the safety ofthe consumers and the general public. 
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SEC. 60. Separabili(y Clause. If for any reason, any chapter, section or provision of this Act 
47 
shall be declared unconstitutional, illegal, or invalid, such parts not affected thereby shall 
48 
remain in full force and effect. 
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SEC. 61. Repealing Clause. All laws, decrees, executive orders, proclamations and 
2 
administrative regulations, or parts thereof inconsistent herewith are hereby repealed or 
3 
modified accordingly. 
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5 
SEC. 62. 
E.tJectivity Clause. This Act shall take effect after fifteen (15) days after its 
6 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
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Approved, 
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