Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5186

Introduced by Honorable Rodante D. Marcoleta

EXPLANATORY NOTE

Since the passage of RA 8479 deregulating the price of petroleum products
including LPG, the price of the latter has more than doubled. Even as the law
mandated the Department of Energy (DOE) to monitor the international and domestic
prices of crude and petroleum products, the pricing is left to the oil/LPG companies
and their dealers and retail outlets.

While the DOE has lately been successful in persuading most companies to
implement price adjustments of liquid petroleum products in small increments, the
situation is not true for all players in the LPG business. Some players have been noted
to implement the full impact of increases in the benchmark monthly contract price
(CP) in Saudi Arabia at the beginning of the month, but only smaller increments are
implemented during times of downward CP movements.

It is recognized that domestic prices are dependent on the price in the
international market and the peso exchange rate. However, certain mechanism may
have to be put in place to protect the welfare of the consuming public from abuse by
unscrupulous local LPG industry players.

Even as liberalization of the downstream oil industry has been the policy
adopted by our government, the urgent passage of this bill is earnestly sought to
provide a mechanism to ensure reasonable prices and timely adjustments for LPG.

RODANTED. MARCOLETA



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5126

Introduced by Honorable Rodante D. Marcoleta

AN ACT
TO PROTECT THE FILIPNO CONSUMER FROM ARBITRARY
INCREASES IN THE PRICES OF LPG BEING CHARGED BY THE
PLAYERS OF THE LPG INDUSTRY, AMENDING FOR THE PURPOSE
SECTIONS 19 AND 14 OF R.A. 8479, OTHERWISE KNOWN AS
DOWNSTREAM OIL INDUSTRY DEREGULATION LAW OF 1998

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 19 of Republic Act No. 8479 is hereby amended by
adding another paragraph to read as follows:

“Providing further, that effective immediately, the price of LPG
has to be guided by an Automatic Pricing Mechanism (APM). Such
‘APM shall be determined by the Energy Regulatory Commission
(ERO), after prior notice and hearing, within six (6) months from the
affectivity of this bill.

To ensure that only safe and qualified LPG cylinders are put in
circulation, the APM shall provide for cylinder repair and maintenance

cost.”


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SEC. 2. The functions of the Department of Energy-Department of Justice
(DOE-DOJ) Task Force shall be transferred to the ERC. Thus, Sec. 14 (d) of the same
law is hereby amended to read as follows:

“Any report from any person of an unreasonable rise in the prices

of LPG shall be immediately acted upon. For this purpose, the ERC is

hereby mandated to determine within thirty (30) days the merits of the

report and

initiate the necessary actions warranted under the
circumstances; Provided, that nothing herein shall prevent the ERC from
investigating and/or filing the necessary complaint moto propio.”
SEC. 3. Implementing Rules And Regulations — The ERC, in coordination with
DOE and other concerned government agencies, shall formulate and issue the

necessary implementing rules and regulations within sixty (60) days after the

effecti

ity of this Act.

SEC. 4. Repealing Clause — All laws, Presidential Decrees, executive orders,
issuances, rules and regulations or parts thereof, which are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 5. Effectivity — This Act shall take effect fifteen (15) days after its
‘complete publication in at least two (2) newspapers of general circulation.

Approved,