.  tiU.. . A W - '
EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
m
<&lhu of lljp
'19 NOV 25 P4 ^7
1188
In trod uced by SEN. W IN  GATCHALIAN
AN ACT
PROVIDING FOR THE NATIONAL ENERGY POLICY AND REGULATORY 
FRAMEWORK FOR THE PHILIPPINE LIQUEFIED PETROLEUM GAS
INDUSTRY
EXPLANATORY NOTE
Liquefied Petroleum Gas (LPG) plays a significant role in the country's residential and 
commercial sectors. According to a 2011 study by the Department of Energy (DOE), 
53% of Filipino households rely on LPG for their cooking, water heating, and lighting 
needs.1 This translates to approximately 49,174,460 individual Filipinos relying on 
LPG for their basic energy needs.2 
In the commercial sector, domestic LPG 
consumption grew at a rapid pace of 10.4% annually from 2007 to 2017.3
Notwithstanding the noteworthy contribution of LPG in addressing the energy needs 
of Filipinos and the Philippine economy, the regulation of the industry has failed to 
keep up. This is evidenced by a series of accidents involving LPG causing loss of life, 
limb, and property.4 Thus, there is a need to strengthen and streamline the laws 
and regulations overseeing the domestic LPG industry.
1 Page 207. 2016 Compendium of Philippine Energy Statistics and Information. DOE.
2 Highlights on Household Population, Number of Households, and Average Household Size of the Philippines (2015 Census o f
Population). 
Available 
at: 
https://psa.gov.ph/content/highlights-household-population-number-households-and-average-
household-size-philippines. In 2010, there are an aaverage of 4.6 persons per household as per PSA data. Available at: 
https://psa.gov.ph/content/highlights-household-populabon-number-households-and-average-household-size-philippines
3 Page 19. 2017 Key Energy Stabsbcs. DOE.
* 
3 
June 
2019, 
1 
killed, 
another 
hurt 
after 
LPG 
explodes 
in 
Pasay 
warehouse, 
available 
at:
https://newsinfo.inquirer.net/996935/l-killed-another-hurt-after-lpg-explodes-in-pasay-warehouse. 3 March 2019, Man hurt in 
LPG blast fire, available at: https://www.philstar.eom/nabon/2019/03/03/1898156/man-hurt-lpg-blast-fire. 9 February 2019, 
Bacolod SP seeks to ban LPG in canisters, available at: https://www.panaynews.net/bacolod-sp-seeks-to-ban-lpg-in-canisters/ . 
19 June 2018, Fire hits LPG refilling plant in Zamboanga, available at: https://news.abs-cbn.com/news/06/19/18/fire-hits-lpg- 
refilling-plant-in-zamboanga.


This proposed measure seeks to provide a national energy policy and regulatory 
framework that would govern the following activities in the LPG value chain: 
importation, 
refining, 
refilling, 
transportation, 
conveyance, 
distribution, 
and 
marketing of LPG, and manufacturing, requalifying, exchanging, and swapping of 
LPG pressure vessels. By providing a comprehensive legal framework, this measure 
seeks to institute reforms in the LPG industry, address concerns in health, safety, 
security, and the environment, and effectively ensure that consumer welfare remains 
paramount.
As such, the immediate passage of this bill is sought.
GATCHA


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
oi tiK £>ract.ip
’19 NOV 25 
P4'-47
Introduced by Senator WIN GATCHALIAN
AN ACT
PROVIDING FOR THE NATIONAL ENERGY POLICY AND REGULATORY 
FRAMEWORK FOR THE PHILIPPINE LIQUEFIED PETROLEUM GAS
INDUSTRY
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
GENERAL PROVISIONS
3 
Section 1. Short Title. -  This Act shall be referred to as the "LPG Act."
4 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to
5 
protect the interests of consumers, ensure their general welfare, and to establish
6 
standards of conduct for business. Towards this end, the State shall:
7 
(a) 
Ensure the health, safety, 
security, environmental, and quality
8 
standards for the 
importation, 
refining, 
refilling, transportation,
9 
distribution, and marketing of liquefied petroleum gas (LPG), and the
10 
manufacture, requalification, exchange, swapping, or improvement of
11 
LPG pressure vessels;
12 
(b) 
Institute reforms in the existing standards of conduct and codes of
13 
practice for the LPG industry;


1 
(c) 
Uphold the right of consumers to freely choose the LPG brand they
2 
want to purchase; and
3 
(d) 
Promote 
awareness 
regarding 
the 
health, 
safety, 
security,
4 
environmental, and quality standards for the proper use of LPG
5 
pressure 
vessels 
and 
ancillary 
equipment 
through 
information
6 
dissemination and consumer education campaigns.
7 
Sec. 3. Scope and Application. -  This Act shali apply to the following:
8 
(a) 
Importation, 
refining, 
refilling, transportation, 
distribution, 
and
9 
marketing of LPG;
10 
(b) 
Manufacture, requalification, exchange, swapping, improvement, or
11 
scrappage of LPG pressure vessels; and
12 
(c) 
Safe operations of all LPG products for residential, commercial,
13 
industrial, and automotive use, and the entire LPG industry.
14 
Sec. 4. Definition o f Terms. -  For purposes of this Act, the following terms
15 
shall be defined as stated below:
16 
(a) 
Accreditation refers to the formal recognition of competency given by
17 
the Department of Trade and Industry (DTI), through a certificate of
18 
accreditation, stating that a manufacturer, re-qualifier, or repairer of
19 
LPG pressure vessels 
has complied with 
aii the documentary
20 
requirements, quality and safety standards, and the specific Philippine
21 
National Standards (PNS) prescribing the method of manufacture,
22 
requalification, or repair of LPG pressure vessels and other applicable
23 
PNS;
24 
(b) 
Activity refers to:
25 
(i) 
Refining, 
manufacturing, 
importing, exporting, 
shipping,
26 
transporting, hauling, storing, refilling, distributing, marketing,
27 
and selling of LPG for residential, commercial, industrial, or
28 
automotive use, and
29 
(ii) 
Manufacturing, 
importing, 
distributing, selling, 
re-qualifying,
30 
repairing, and scrappage of LPG pressure vessels, authorized LPG
31 
seals, and other ancillary equipment;


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(c) 
Alteration refers to any act of converting, transforming, or resizing of 
local or imported LPG pressure vessels from its original size or design 
including replacement or removal of existing registered brand owner's 
markings, grinding, flattening, application of putty, replacement of 
collar, revalving, unauthorized repainting, replacement of foot-rings, or 
re-labeling;
(d) 
Ancillary equipment refe'cs to parts, devices, and accessories necessary 
for the safe and proper operation of an LPG pressure vessel such as 
valves, hoses, and regulators;
(e) 
Authorized LPG seal refers to the security cover placed on the gas 
outlet of an LPG cylinder, canister, or cartridge, of the type that 
necessitates breaking or destroying before LPG can flow out of the 
cylinder, canister, or cartridge. 
It shall have a distinctive design, 
symbol, emblem, or mark, identifying the owner of the LPG cylinder, 
canister, or cartridge;
(f) 
Auto-LPG refers to LPG intended to fuel, propel, or otherwise provide 
propulsion to motor vehicles;
(g) 
Auto-LPG dispensing station refers 
to 
a 
facility 
or 
business 
establishment, which sells auto-LPG directly to motor vehicle users. It 
may be a standalone establishment, or located within or operated with 
a retail outlet;
(h) 
Brand owner refers to a natural or juridical person owning a duly 
registered brand name, logo, mark, or distinction registered with the 
Intellectual Property Office of the Philippines;
(i) 
Bulk consumer refers to a duly-authorized natural or judicial person 
who purchases LPG at large quantities for its own use, requires bulk 
storage of LPG, and does not, in any way, engage in the distribution or 
retail of LPG to the end consumer;
(j) 
Bulk supplier refers to a duly-authorized natural or juridical person who 
engages In the sale or distribution of LPG in large quantities and 
requires bulk storage of LPG;


1
( k )
2
3
4
5
(1)
6
7
8
( m )
9
10
11
12
(n)
13
14
15
( 0 )
16
17
(P)
18
19
20
21
( q )
22
23
24
(r)
25
26
( s )
27
28
29
30
Certificate o f accreditation refers to the written document issued by the 
DTI stating that a manufacturer, re-qualifier, or repairer of LPG has 
complied with all the requirements and standards necessary to operate 
as such;
Certificate o f conformity refers to the written document issued by the 
DTI stating that the LPG pressure vessel has complied with existing 
PNS and other applicable laws, rules, and regulations;
Certificate o f non-coverage (CNC) refers to a written document issued 
by the DOE attesting to the fact that an LPG industry participant is a 
bulk consumer, and is not engaged in any other activity that will 
require a license to operate;
Container refers 
to 
any 
pressure vessel 
filled 
with 
auto-LPG 
permanently attached to, and is an inherent and integral part of a 
motor vehicle;
Cross-filling refers to the filling of LPG cylinders by a natural or juridical 
person other than the brand owner or its duly authorized refiller; 
Cylinder, canister, or cartridge owner refers to a natural or juridical 
person whose brand, mark, trade name, or business name is 
embossed, engraved, or otherwise permanently indicated on the LPG 
cylinder, canister, or cartridge in the manner prescribed by the DTI; 
Cylinder refers to a portable and refillable pressure vessel, with water 
capacity of not less than one hundred fifty (150) liters, designed for 
the storage of LPG;
Deaier refers to any person involved in the trading or sale of LPG 
cylinders to retail outlets or directly to end consumers;
Defective pressure vessels refer to pressure vessel that are uncertified, 
damaged, or dilapidated due to the existence of corrosion or pitting, 
dents, cuts, gouges, digs, bulges, leaks, and similar defects rendering 
such pressure vessel unsafe, injurious, or dangerous for distribution or 
use, and creating a substantial risk of injury to the general public;


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
(t) 
End consumer refers to any person, who purchases LPG for their own 
consumption. 
For purposes of this Act, an end consumer shall not 
include a bulk consumer;
(u) 
Hauler refers to a natural or juridical person involved in the 
transportation, distribution, and delivery of LPG cylinders and canisters 
through the use of authorized vehicles;
(v) 
Importer refers to a natural or juridical person engaged in the 
importation of LPG for processing, sale, or own use;
(w) 
License to operate refers to a certification issued by the DOE that a 
natural or juridical person intending to engage in business for a specific 
activity as an LPG industry participant has complied with all the 
documentary requirements, and quality and safety standards, rules, 
and regulations prescribed by the DOE and other pertinent government 
agencies for such an activity;
(x) 
LPG refers to liquefied petroleum gas which consists of commercial 
propane gas or commercial butane gas, or a mixture of both gases, 
with properties conforming to the standards set forth in the PNS and 
other applicable laws, rules, and regulations;
(y) 
LPG canister or cartridge refers to a portable and non-refillable 
pressure vessel, with a water capacity of less than one (1) liter, 
designed for the storage of LPG or a mixture of gases;
(z) 
LPG industry participants refers to natural or juridical persons engaged 
in the activities defined in Section 4(b) of this Act;
(aa) 
LPG pressure vessel refers to a canister, cartridge, container, or 
cylinder designed for the storage of LPG;
(bb) 
Marketer refers to a natural or juridical person engaged in the sale of 
LPG under its own brand name, in bulk, or as a retail outlet;
(cc) 
Permanent mark refer to the embossed trade or brand name of the 
brand owner which appears on the LPG cylinder, as prescribed by the 
DTI;
(dd) 
Pilferage refers to the theft of LPG in quantities from a large receptacle 
such as a tanker, lorry, or similar installations;


1
(ee)
2
3
4
5
6
7
8
9
(ff)
10
11
12
13
(gg)
14
15
16
17
18
(hh)
19
20
(ii)
21
22
23
Qj)
24
25
26
27
28
(kk)
29
30
(II)
31
32
PNS refers to the standards promulgated by the DTI Bureau of 
Philippine Standards (BPS) pertaining to product specifications, test 
methods, terminologies, procedures, or practices pursuant to Republic 
Act No. 4109, otherwise known as An Act to Convert the Division of 
Standards Under the Bureau of Commerce into a Bureau of Standards, 
to Provide for the Standardization and/or Inspection of Products and 
Imports of the Phiiippines and for Other Purposes, and other applicable 
laws, rules, and regulations;
Qualified service person refers to an individual who has successfully 
completed an approved training course for LPG service persons in a 
training school duly recognized and accredited by the Philippine 
government;
/?e/7//errefers to a cylinder, canister, or cartridge owner engaged in the 
business of refilling its own LPG cylinder, canister, or cartridge. It shall 
also refer to a natural or juridical person duly authorized by the 
cylinder, canister, or cartridge owner to engage in the business of 
refiliing LPG cylinders, canisters, or cartridges on its behalf;
Refilling plant refers to a facility with LPG bulk storage and refilling 
equipment, used for refiliing LPG into cyiinders;
/?e/7/?er refers to a naturai or juridical person who refines LPG through 
distillation, conversion, and treatment of crude oil and other naturally 
occurring petroleum hydrocarbons;
Re-quaiification refers to the process by which an LPG pressure vessel 
is inspected, tested, and re-evaluated in accordance with the 
prescribed specifications and standards to determine its viability for 
continued use, distribution, repair, or scrappage, whichever may be 
applicable;
Re-quaiifier refers to a person engaged in the business of re- 
qualification duly accredited by the DTI;
Repair refers to the removal and replacement of parts of LPG pressure 
vessels, or the performance of any other corrective and restorative 
measures in accordance with the prescribed method under the PNS,


1 
with the end goal of restoring the viability and fitness of LPG pressure
2 
vessels for public use;
3 
(mm) Repairer 
to a natural or juridical person engaged in the business
4 
of repair duly accredited by the DTI;
5 
(nn) 
Retail outlet refers to a natural or juridical person involved in the sale
6 
of LPG cylinders directly to end consumers;
7 
(oo) 
Scrappage refers to the destruction of defective LPG pressure vessels
8 
declared by a re-qualifier to be unfit for use. The destruction may be
9 
done by cutting the pressure vessel at various parts or by flattening to
10 
render the pressure vessel unusable or unrecyclable;
11 
(pp) 
Substandard refers to any pressure vessel which does not conform
12 
with the applicable PNS;
13 
(qq) 
Tare weight refers to the net weight of an LPG pressure vessel
14 
excluding its contents as engraved in the collar and painted in the body
15 
thereof. It shall be expressed in kilograms in accordance with
16 
guidelines issue by the DTI; and
17 
(rr) 
Uncertified pressure vessel refers to an LPG pressure vessel that does
18 
not comply with the PNS.
19
20 
CHAPTER I I
21 
ROLE OF GOVERNMENT AGENCIES
22 
Sec. 5. Lead Agency. -  The DOE shall be the primary government agency
23 
responsible for the implementation and enforcement of this Act. 
The DOE shall
24 
regulate, supervise, and monitor the LPG industry and all LPG industry participants
25 
to ensure compliance with the health, safety, security, and environmental standards
26 
and the applicable PNS.
27 
Sec. 6. Powers and Functions o f the Department o f Energy. -  In addition to
28 
its mandate under Republic Act No. 7638, otherwise known as the Department of
29 
Energy Act of 1992, and Republic Act No. 8479, otherwise known as the
30 
Downstream Oil Deregulation Act, the DOE shall have the following powers and
31 
functions:


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(a) 
Implement and ensure compliance with the quality and safety
standards prescribed in the PNS for:
(i) 
Refining 
plants, 
refilling 
plants, 
depots, 
storage 
areas, 
transportation facilities, retail outlets, and other related facilities 
or premises of LPG industry participants, and
(ii) 
LPG pressure vessels in circulation, whether filled or unfilled, 
which are for distribution and sale to dealers, retail outlets, and 
end consumers;
(b) 
Issue the following:
(i) 
Licenses to operate and certificates of non-coverage for 
qualified LPG industry participants, and suspend or revoke 
these, after due notice and hearing, pursuant to Sections 18 and 
19, and Chapter IX of this Act,
(ii) 
Closure or cease and desist orders, after due notice and 
hearing, to any concerned LPG industry participant found to 
have committed any of the prohibited acts under Chapter IX of 
this Act,
(iii) 
Guidelines for the following:
(1) 
Disposal of LPG and LPG pressure vessels together with 
the 
Department of Energy and 
Natural 
Resources 
(DENR),
(2) 
Motor vehicles used in the transportation of LPG in bulk, 
LPG from one LPG industry participant to another, and 
filled LPG cylinders, canisters, and cartridges to end 
consumers, and the registration thereof, together with 
the DOTr, pursuant to Section 28 of this Act,
(3) 
Accreditation of drivers and attendants for LPG delivery 
vehicles upon prior consultation with LPG industry 
participants and other government agencies concerned,
(4) 
Installation of signage at storage facilities of bulk 
suppliers and bulk consumers, and


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(5) 
Installation of LPG appliances and devices approved by 
the DTI: Provided, That such appliances and devices shall 
be installed only by qualified service persons;
(c) 
Approve and authorize LPG seals of brand owners and marketers;
(d) 
Direct LPG 
brand owners, to 
periodically submit cylinders for 
requalification pursuant to Section 7 of this Act;
(e) 
Investigate motu proprio or upon report of any person, impose and 
collect fines and 
penalties, 
initiate and 
resolve the necessary 
administration action, or initiate the necessary criminal action against 
the responsible persons for the following:
(i) 
Any violation of this Act by any LPG industry participant, and 
(11) 
Incidents of injury or damage to person or property, caused by 
or attributable to the improper refilling, storage, transport, 
distribution, handling, manufacturing, re-qualifying, repairing of 
LPG pressure vessels, and improper refining, dispensing, and 
use of LPG;
(f) 
Confiscate, recall, seize, impound, and prohibit the following:
(i) 
LPG seals not compliant with standards, rules, and regulations 
including those in illegal possession or use, and
(ii) 
Substandard, defective, unsafe, injurious or dangerous LPG 
products, underfilled, illegally refilled, or defective pressure 
vessels, ancillary equipment, auto-LPG vehicles, and other 
appurtenances that are found in violation of the provisions of 
this Act and pursuant to Section 25 thereof;
(g) 
Exercise visitorial powers to ensure the effective implementation of this 
Act, which includes the power to scrutinize the records of LPG industry 
participants and inspect their premises, filled LPG pressure vessels, 
LPG seals, and ancillary equipment;
(h) 
Require LPG industry participants to submit written or electronic forms 
or reports as it may deem necessary and reasonable pursuant to 
Section 24 of this Act,


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
(i) 
Create, maintain, and regularly update a central database of LPG 
industry participants and an inventory of existing and projected LPG 
supply levels pursuant to Section 25 of this Act;
(j) 
Regularly publish in a newspaper of general circulation the names of 
LPG industry participants found liable for prohibited acts pursuant to 
Chapter IX of this Act;
(k) 
Determine the strategy, rules, regulations, and procedure for the 
improvement of LPG pressure vessels already in the market at the time 
of effectivity of this Act, upon consultation with LPG industry 
participants and other concerned government agencies, with the end in 
view of ensuring the safety of end consumers;
(l) 
Undertake 
with 
DTI 
and 
DILG 
information, 
education, 
and 
communication activities on health, safety, security, environmental, 
and quality standards for LPG, LPG pressure vessels, auto-LPG 
vehicles, ancillary equipment, other appurtenances, and motor vehicles 
transporting LPG to enhance awareness among end customers, local 
government units (LGUs), and the Philippine National Police (PNP);
(m) 
Conduct research and development with the Department of Science 
and Technology towards LPG pressure vessel improvement and more 
efficient methods of providing safe, clean, and hazard-free LPG to end 
consumers; and
(n) 
Exercise such other powers and functions as may be necessary or 
incidental to attaining the objectives of this Act.
Sec. 7. Powers and Functions o f the Department o f Trade and Industry (DTI). 
-  In addition to its mandate under existing laws, the DTI shall have the following 
powers and functions:
(a) 
Develop, formulate, promulgate, review and revise, as may be 
necessary, the PNS for LPG, LPG pressure vessels, and other ancillary 
equipment;
(b) 
Accredit manufacturers, re-qualifiers, and repairers of LPG pressure 
vessels through the issuance of a certificate of accreditation;
(c) 
Determine frequency of re-quaiification of LPG pressure vessels;
10


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
1
(d) 
Inspect, evaluate, and confirm compliance with the PNS and fitness for 
sale and public distribution of local and imported LPG pressure vessels 
and ancillary equipment, and re-qualified LPG pressure vessels through 
the issuance of a certificate of conformity;
(e) 
Grant and revoke, if warranted, the certificates of accreditation and 
conformity of LPG industry participants and their respective LPG 
pressure vessels pursuant to Section 20 of this Act; and
(f) 
Undertake with the DOE and the Department of Interior and Local 
Government (DILG) 
information, 
education, 
and 
communication 
activities on health, safety, security, environmental, and quality 
standards for LPG, LPG pressure vessels, auto-LPG vehicles, ancillary 
equipment, other appurtenances, and motor vehicles transporting LPG 
to enhance awareness among end customers, LGUs, and the PNP.
Sec. 8. Powers and Functions o f the Department o f Interior and Locai 
Government -  In addition to its mandate under existing laws, the DILG shall have 
the following powers and functions:
(g) 
Issue the appropriate guidelines and regulations governing the fire 
safety of LPG facilities through the Bureau of Fire Protection (BFP);
(h) 
Undertake 
with 
DTI 
and 
DILG 
information, 
education, 
and 
communication activities on health, safety, security, environmental, 
and quality standards for LPG, LPG pressure vessels, auto-LPG 
vehicles, ancillary equipment, other appurtenances, and motor vehicles 
transporting LPG to enhance awareness among end customers, LGUs, 
and the PNP;
(i) 
Coordinate and cooperate with the DOE orderly and effective 
implementation of this Act, rules, regulations, and other issuances 
promulgated pursuant thereto, together with LGUs and the Philippine 
National Police (PNP); and
(j) 
Extend all the necessary assistance to the DOE with respect to the 
enforcement of measures to attain the objectives of this Act.
11


1 
Sec. 9. Powers and Functions o f the Department o f Transportation (DOTr). -
2 
In addition to its mandate under existing laws, the DOTr shall issue the appropriate
3 
guidelines and regulations governing the following:
4 
(a) 
Auto-LPG motor vehicles;
5 
(b) 
Motor vehicles used in the transportation of LPG in bulk, LPG from one
6 
LPG industry participant to another, and LPG filled cylinders, canisters,
7 
and cartridges to end consumers, together with the DOE, pursuant to
8 
Section 28 of this Act;
9 
(c) 
Shipping or water transport of LPG and LPG filled pressure vessels
10 
through the Maritime Industry Authority.
11 
Sec. 10. Powers and Functions o f Locai Government Units. -  In addition to
12 
their mandate under existing laws, LGUs shall have the following powers and
13 
functions:
14 
(a) 
Assist the DOE in providing an area for impounded LPG pressure
15 
vessels;
16 
(b) 
Suspend or revoke, upon due notice and hearing, the business permit
17 
or license of an LPG industry participant upon the issuance by the DOE
18 
of a notice of suspension or revocation of its license to operate
19 
pursuant to Section 6 of this Act;
20 
(c) 
Communicate to DOE the suspension or revocation of the business
21 
permit or license of an LPG industry participant within five (5) days
22 
from such suspension or revocation; and
23 
(d) 
Issue guidelines on the motor vehicles used in the transportation of
24 
LPG in bulk, LPG from one LPG industry participant to another, and
25 
LPG in cylinders, canisters, or cartridges to end consumers pursuant to
26 
Section 28 of this Act.
27 
Sec. 11. Powers and Functions o f the Phiiippine Nationai Poiice. -  In addition
28 
to their mandate under existing laws, the PNP shall, upon request of the DOE,
29 
provide security to life and property in the course of the implementation of this Act:
30 
Provided, That only the personnel or unit of the PNP duly deputized by the DOE shall
31 
have the authority to enforce this Act: Provided further, That the PNP shall not, on
12


1 
its own, conduct LPG inspections without a request from the DOE, or confiscate LPG
2 
cylinders unless duly authorized by a warrant issued by the courts.
3 
Sec. 12. Powers and Functions o f Other Government Agencies. -  In addition
4 
to its mandate under existing laws, the DENR shall issue, together with the DOE,
5 
guidelines for the disposal of LPG and LPG pressure vessels. 
In addition to its
6 
mandate under existing laws, the Department of Public Works and Highways
7 
(DPWH) shall issue guidelines and requirements motor vehicles used in the
8 
transportation of LPG in bulk.
9
10 
CHAPTER I I I
11 
RRESPONSIBILITIES OF LPG INDUSTRY PARTICIPANTS
12 
Sec. 13. Bulk Supplier. -  In addition to the provisions under this Act, a bulk
13 
supplier shall;
14 
(a) 
Ensure adequate and stable supply of LPG in bulk;
15 
(b) 
Make 
certain 
that 
production, 
storage, 
receiving, and 
loading
16 
equipment and facilities are in safe operating conditions at all times;
17 
(c) 
Enter into contracts or agreements only with bulk consumers with a
18 
valid certificate of non-coverage;
19 
(d) 
Submit a notarized copy of its contract or agreement with a bulk
20 
consumer to the DOE within a reasonable period of time from the
21 
execution thereof; and
22 
(e) 
Register with DOE all vehicles used for the transportation of LPG in
23 
bulk, and comply with guidelines pursuant to Section 28 of this Act.
24 
Sec. 14. RefiHer. -  In addition to the provisions under this Act, a refiller shall:
25 
(a) 
Fill cylinders, canisters, and cartridges under its own brand and its
26 
duly-authorized brands;
27 
(b) 
Fill LPG cylinders, canisters, and cartridges accurately as to the
28 
required exact net content of the LPG cylinder;
29 
(c) 
Test the weight and conduct a leak test of every LPG cylinder, canister,
30 
and cartridge before it leaves the refilling plant;
31 
(d) 
Only refill cylinders, canisters, and cartridges that comply with the
32 
PNS;
13


1
(e)
2
3
4
(f)
5
(g)
6
7
8
9
Sec
10
Act, a brar
11
(a)
12
(b)
13
14
IS
16
17
(c)
18
19
(d)
20
21
(e)
22
23
(f)
24
25
(g)
26
(h)
27
28
29
0)
30
31
0)
Refuse to refill single-use canisters and cartridges or those not 
designed or intended for refilling of LPG due to non-compliance with 
the PNS, or not certified or allowed by the DTI;
Observe safe LPG handling practices;
Periodically check compliance of dealers and retails outlets with the 
following:
(i) 
Content requirements of LPG sold; and
(ii) 
Proper calibration and sealing of weighing devices.
Carry its own brand of LPG;
Ensure the following:
(i) 
Adequate and timely supply of LPG to its dealers, retail outlets, 
and end consumers, and
(ii) 
Correct weight of LPG filled cylinders, canisters, or cartridges 
delivered to its dealers, retail outlets, and end consumers;
Procure new LPG cylinders, canisters, or cartridges only from reputable 
and duly licensed LPG cylinder manufacturers;
Only utilize LPG cylinders, canisters, or cartridges that comply with the 
PNS;
Emboss all new LPG cylinders, canisters, or cartridges with its 
registered brand name;
Utilize a distinguishable color and marking scheme for all its LPG 
cylinders, canisters, or cartridges and register the same with the DOE; 
Register its LPG seal and seal manufacturer with the DOE;
Maintain and repair all LPG cylinders, canisters, or cartridges under its 
own brand name through duly licensed and accredited re-qualifiers and 
repairers;
Provide servicing, delivery, and technical assistance to all its dealers, 
retail outlets, and end consumers;
Observe safe LPG handling practices;
14


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(k) 
Register with the DOE ail vehicles used for the transportation of its LPG 
and LPG cylinders, canisters, or cartridges, and comply with guidelines 
pursuant to Section 28; and
(l) 
Periodically check compliance of dealers and retail outlets with the 
following:
(i) 
Content requirements of LPG sold, and
(ii) 
Proper calibration and sealing of weighing devices.
Sec. 16. Dealer. -  In addition to the provisions under this Act, a dealer shall:
(a) 
Enter into a contract or agreement with a duly licensed brand owner or 
marketer;
(b) 
Exclusively carry the brand of LPG of its refiller or marketer;
(c) 
Only sell LPG in cylinders, canisters, or cartridges with an authorized
LPG seal of its refiller or marketer;
(d) 
Provide appropriate weighing devices which shall accurately measure 
LPG filled cylinders, canisters, or cartridges;
(e) 
Ensure the correct weight of LPG filled cylinders, canisters, or 
cartridges delivered to its retail outlets and end consumers;
(f) 
Put up display and storage facilities within its area of operation;
(g) 
Provide servicing, delivery, and technical assistance for its retail outlets 
and end consumers;
(h) 
Observe safe LPG handling practices;
(i) 
Register with the DOE all vehicles used for the transport of LPG and
LPG cylinders, canisters, or cartridges, and comply with guidelines 
pursuant to Section 28 of this Act;
Q) 
Ensure that each filled LPG cylinder, canister, or cartridge conforms 
with the PNS prior to acceptance from its duly licensed brand owner or 
marketer; and
(k) 
Periodically check compliance of dealers and retail outlets with the 
following:
(i) 
Content requirements of LPG sold, and
(ii) 
Proper calibration and sealing of weighing devices.
15


1 
Sec. 17. Retail Outlet -  In addition to the provisions under this Act, a retail
2 
outlet shall:
3 
(a) 
Sell the brands of LPG filled cylinders, canisters, or cartridges it is
4 
authorized to carry by virtue of its contract or agreement with duly
5 
licensed brand owners, marketers, or dealers;
6 
(b) 
Only sell LPG in cylinders, canisters, or cartridges with authorized LPG
7 
seals of its duly licensed brand owner, marketer, or refiller;
8 
(c) 
Provide appropriate weighing devices which shall accurately measure
9 
LPG cylinders, canisters, or cartridges;
10 
(d) 
Request the brand owner, marketer, or dealer for a qualified LPG
11 
service person to render services to its end consumers;
12 
(e) 
Install and provide in its respective establishment fire extinguishers,
13 
printed materials, and posters showing procedures on how to prevent
14 
and react to LPG related accidents;
15 
(f) 
Observe safe LPG handling practices; and
16 
(g) 
Ensure that each LPG filled cylinder, canister, or cartridge conforms
17 
with the PNS prior to acceptance from the brand owner, marketer, or
18 
dealer.
19
20 
CHAPTER IV
21 
LICENSES, PERMITS, AND OTHER BUSINESS REQUIREMENTS
22 
Sec. 18. License to Operate. -  Every LPG industry participant shall secure a
23 
license to operate for a specific activity prior to the commencement of construction
24 
or commercial operation, and shall publicly post such license to operate in its
25 
business establishment or premises. In the event that the LPG industry participant
26 
intends to engage in a new activity outside of its current license to operate, it shall
27 
secure another license to operate for such new activity. All LPG industry participants
28 
shall conduct business only with LPG industry participants with a valid license to
29 
operate for the specific activity they are engaged in.
30
31 
The DOE shall have the exclusive authority to issue the license to operate. It shall
32 
be valid for a period of three (3) years or any such period as may be determined by
16


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
the DOE. The license to operate shall be a mandatory requirement for the grant or 
renewal of any license or permit issued by the LGU to the LPG industry participant.
Any person already engaged in any activity as defined herein, at the time of the 
effectivity of this Act, shall obtain a license to operate within six (6) months from the 
promulgation of this Act's implementing rules and regulations.
Sec. 19. Certificate o f Non-Coverage. -  A bulk consumer shall secure a 
certificate of non-coverage from the DOE in lieu of a license to operate: Provided, 
That a bulk consumer who engages in another activity as an LPG industry participant 
shall be required to secure a license to operate for such activity: Provided further, 
That a certificate of non-coverage does not exempt the bulk consumer from 
compliance with quality and safety requirements and standards.
Sec. 20. Certificate o f Accreditation and Certificate o f Conformity. -  An LPG 
industry participant who engages in manufacturing, re-qualifying, repairing, or 
scrapping of LPG pressure vessels shall obtain a certificate of accreditation from DTI 
prior to the commencement construction or commercial operation, and annually 
thereafter. 
Any LPG industry participant already engaged in manufacturing, re­
qualification, repair, or scrappage of LPG pressure vessels at the time of effectivity of 
this Act shall secure a certificate of accreditation from the DTI within six (6) months 
from the promulgation of this Act's implementing rules and regulations.
A manufacturer shall obtain a certificate of conformity from the DTI for the LPG 
pressure vessels it produces. 
An LPG industry participant aiready engaged in 
manufacturing at the time of effectivity of this Act shall secure a certificate of 
conformity for the pressure vessels it has produced and is currently producing within 
six (6) months from the promulgation of this Act's implementing rules and 
regulations.
CHAPTER IV
AUTO-LPG DISPENSING STATIONS
Sec. 21. Installation o f LPG Containers and Retailing o f auto-LPG. -  Any LPG 
industry participant who installs LPG containers, retrofits motor vehicles with LPG
17


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
containers, or operates an auto-LPG dispensing station shall be required to comply 
with the requirements, quality and safety standards, rules, and regulations issued by 
the DOTr pursuant to Section 9 of this Act and other pertinent government agencies,
CHAPTER V
OWNERSHIP OF LPG CYLINDERS AND LPG CONTAINERS
Sec. 22. Ownership o f LPG Cylinders, Canisters, and Cartridges. -  The brand 
owner whose permanent mark appears on the LPG cylinder, canister, or cartridge 
shall be the presumed owner thereof. 
The presumption applies to LPG cylinders, 
canisters, or cartridges subject of exchange or swapping, or which are in the 
possession of an authorized refiller, marketer, dealer, retail outlet, or re-qualifier, or 
such other person duly authorized by the brand owner.
The brand owner shall have the obligation to ensure that all of its LPG cylinders, 
canisters, or cartridges comply with all the required quality and safety standards, 
rules, and regulations 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 cylinder, canister, or cartridge shall prima facie relieve 
the brand owner of the obligation to ensure the quality and safety of such LPG 
cylinder, canister, or cartridge.
Sec. 23. Ownership o f LPG Containers. -  An LPG container shall be 
permanently installed inside the motor vehicle, and shall be an inherent and integral 
part of the vehicle. The ownership of the LPG container shall be with the owner of 
the motor vehicle to which the LPG container is permanently installed.
CHAPTER V I
MONITORING AND ENFORCEMENT MECHANISMS
Sec. 24. Reports and Disclosures to the DOE. -  In requiring LPG industry 
participants to submit written or electronic forms or reports pursuant to Section 6 of 
this Act, the DOE shall be prohibited from sharing, disclosing, or making available to 
the public any information, document, plan, and report constituting trade secrets.
18


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
proprietary data, and other legitimate commercial information which are confidential 
or privileged in nature.
Sec. 25. Central Database ofLPG Industry Participants. - The central database 
created by DOE pursuant to Section 6 of this Act shall be updated on a monthly 
basis. It shall include the following information:
(a) 
Corporate, business, or trade name of the LPG industry participant;
(b) 
Registered brand name or logo for LPG, LPG pressure vessels, facilities, 
and equipment;
(c) 
Contractual agreements with other LPG industry participants;
(d) 
List of lost, stolen, and missing LPG cylinders;
(e) 
Violations committed and incidents relating to such violations; and
(f) 
Other relevant information as may be determined by the DOE.
CHAPTER V II
DECLARATION OF LPG CYLINDER AS DEFECTIVE
Sec. 26. Declaration o f LPG Cylinder, Canister, or Cartridge as Defective. -  
When the DOE finds, motu proprio or upon complaint of any person, that an LPG 
cylinder, canister, or cartridge is uncertified, defective, injurious, unsafe, dangerous, 
or substandard, it shall, after due notice, issue the appropriate order for its 
immediate confiscation, recall, seizure, impoundment, or prohibition from public sale 
or distribution. 
The concerned LPG cylinder, canister, or cartridge owner shall be 
afforded an opportunity to be heard from the issuance of such order, for the 
purpose 
of determining 
the 
propriety 
of the 
confiscation, 
recall, 
seizure, 
impoundment, or prohibition of the LPG cylinders, canisters, or cartridges.
The DOE shall terminate the proceedings and make a final determination on whether 
the LPG cylinder, canister, or cartridge is uncertified, defective, injurious, unsafe, 
dangerous, or substandard within thirty (30) calendar days from the issuance of the 
order for confiscation, recall, seizure, impoundment, or prohibition.
Filled LPG cylinders which are confiscated, recalled, seized, or impounded and found 
by the DOE to pose an imminent threat to the public or in danger of exploding shall
19


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
be disposed of without serving prior notice to the owners thereof. The DOE shall 
notify the owner of such fact within five (5) calendar days after such disposition.
Sec. 27. LPG in Unauthorized Canisters or Cartridges. -  It shall be unlawful 
for any person to refill, sell, trade, or distribute LPG in a single-use canister or 
cartridge not designed or intended for LPG, or not in compliance with existing PNS.
CHAPTER V III
TRANSPORT AND CONVEYANCE OF LPG
Sec. 28. Transport o f LPG. -  All motor vehicles utilized in the transportation of 
LPG and filled LPG cylinders, canisters, and cartridges shall obtain a Certificate of 
Road Worthiness from the Land Transportation Office prior to the issuance and 
renewal of a license to operate, and shall comply with the guidelines of DOE and 
DOTr pursuant to Sections 6 and 9 of this Act.
An LPG industry participant who transports LPG in bulk, shall only use motor vehicles 
that have complied with the guidelines and met the requirements prescribed by the 
DOE, DOTr, DILG-BFP, DPWH, and the concerned LGU.
An LPG industry participant who transports LPG in cylinders, canisters, and 
cartridges, to another LPG participant, shall only use motor vehicles that have 
complied with the guidelines and met the requirements prescribed by the DOE, 
DOTr, and DILG-BFP.
An LPG industry participant who transports LPG in cylinders, canisters, and 
cartridges to end consumers, shall only use motor vehicles that have complied with 
the guidelines and met the requirements prescribed by the DOE, DOTr, DILG -  BFP, 
and the concerned LGU.
CHAPTER IX  
PROHIBITED ACTS
Sec. 29. Prohibited Acts. -  Any natural or juridical person, whether an LPG 
industry participant or otherwise, shall be prohibited from the following acts:
20


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
1
(a) 
Engaging in an activity without a valid license to operate;
(b) 
Engaging in an activity as a bulk consumer without a valid certificate of 
non-coverage;
(c) 
Manufacturing LPG pressure vessels without a valid certificate of 
conformity for the LPG pressure vessels;
(d) 
Manufacturing LPG pressure vessels and LPG seals, or re-qualifying, 
repairing, or scrapping of LPG pressure vessels without a certificate of 
accreditation;
(e) 
Transacting with, or selling or distributing LPG products, LPG cylinders, 
canisters, or cartridges, or LPG seals to an LPG industry participant 
who does not have a valid license to operate or certificate of 
accreditation, as the case may be;
(f) 
Importing used or second-hand LPG pressure vessels without securing 
an authority to import from the DTI;
(g) 
Failing to comply with the standards and requirements on:
(i) 
Safety design for refining piants, refilling plants, depots, storage 
areas, transportation facilities, retail outlets, warehouses, and 
other related facilities or premises of LPG industry participants,
(ii) 
Safety practices,
(iii) 
Products, and
(iv) 
Weighing devices;
(h) 
Manufacturing of LPG pressure vessels using substandard materials;
(i) 
Selling and distributing substandard LPG pressure vessels;
(j) 
Manufacturing, sailing, or distributing LPG pressure vessels without the 
necessary markings required by the PNS, or the standard governing 
LPG pressure vessels manufacture, requalification, and repair;
(k) 
Selling or distributing refilled single-use canisters or cartridges which 
have been previously filled with butane, or not designed or intended 
for refilling of LPG due to non-compliance with the PNS, or not certified 
or allowed by the DTI;
21


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
1
( l) 
Selling or distributing LPG filled cylinders, canisters, or cartridges 
without a seal, with a tampered, fake, or broken seal, inappropriate or 
unauthorized seal, or with a seal not belonging to the brand owner;
(m) 
Destroying, tampering, altering, or modifying LPG pressure vessels 
through any means such as changing the LPG pressure valve, 
repainting, and re-labeling: Provided, That this shall 
not be a 
prohibited act if it is done by the brand owner;
(n) 
Stamping wrong, misleading, incorrect, or inaccurate information on 
LPG pressure vessels.
(o) 
Selling or distributing LPG in means, methods, and equipment other 
than what is prescribed under this Act;
(p) 
Filling LPG pressure vessels with LPG mixed with another finished or 
unfinished petroleum or non-petroleum product, substance, or material 
resulting in the failure of the LPG to meet the required product 
standards and 
requirements: 
Provided, That possession of LPG 
pressure vessels containing adulterated LPG shall be prima facie 
evidence of violation of this provision;
(q) 
Refilling LPG in single-use canisters or cartridges which have been 
previously filled with butane, or not designed or intended for refilling of 
LPG due to non-compliance with the PNS, or not certified or allowed by 
the DTI;
(r) 
Hauling, 
loading, 
transporting, 
or 
permitting 
the 
loading 
and 
transportation of LPG cylinders, canisters, or cartridges in quantities 
greater than the rated capacity of the motor vehicle or in such a 
manner that endangers the life and safety of its passengers or the 
public;
(s) 
Selling or storing LPG more than the volume prescribed by the DOE;
(t) 
Selling or storing empty LPG cylinders, canisters, and cartridges in 
excess of those allowed by the DOE, through LPG cylinder swapping 
and other similar industry practices;
22


1
(u )
2
3
4
(V)
5
6
7
8
(w)
9
10
11
(X)
12
13
(y)
14
15
(z)
16
17
18
(aa)
19
(b b )
20
(cc)
21
22
(d d )
23
24
Sec.
25
persons she
26
(a)
27
28
29
(b )
30
31
Manufacturing or selling LPG pressure vessels carrying a brand name, 
logo, mark, or distinction without the express approval of the 
registered brand owner;
Selling, exchanging, bartering, distributing, or transferring ownership 
or possession of empty LPG cylinders, canisters, and cartridges to a 
natural or juridical person other than the brand owner without the 
consent of the said brand owner;
Possessing LPG seals, including the seals already used in LPG pressure 
vessels without authority from the LPG cylinder, canister, or cartridge 
owner or its duly authorized refiller;
Filling of bulk tanks in refilling plants by bulk suppliers other than the 
owner of the tanks;
Requiring end consumers to exclusively purchase LPG from a brand 
owner, marketer, refiller, dealer, or retail outlet;
Refusing to refund the deposit on the LPG cylinder to any consumer, in 
the case of an LPG brand owner and its duly authorized dealer or retail 
outlet;
Section 6 of this Act; and
records.
The refiller when the net quantity of LPG contained in an LPG pressure 
vessel sold, transferred, delivered, or filled is less than the LPG 
pressure vessel content required at the filling plant; and 
The dealer or retail outlet when the net quantity of LPG in a pressure 
vessel intentionally sold, transferred, or delivered is less than the 
required LPG pressure vessel content quantity.
23


1 
A broken, tampered, absent, or removed seal shall be considered prima facie
2 
evidence of underfilling.
3 
Sec. 31. Illegal Refilling. -  The following acts shall constitute illegal refilling of
4 
LPG pressure vessels:
5 
(a) 
Filling LPG pressure vessels with products or substances other than
6 
LPG in an effort to achieve the correct net weight;
7 
(b) 
Filling of LPG pressure vessels directly from LPG tank trucks without
8 
the use of approved filling machines;
9 
(c) 
Cross-filling;
10 
(d) 
Refilling of LPG from one LPG pressure vessel to another without using
11 
the prescribed equipment;
12 
(e) 
Refilling of LPG pressure vessels other than in duly licensed LPG
13 
refilling plants;
14 
(f) 
Refilling of LPG pressure vessels:
15 
(i) 
By a person other than the brand owner or its duly authorized
16 
person evidenced by a written contract or similar instrument;
17 
(ii) 
Bearing defaced, tampered, or illegible markings contrary 
to the
18 
mandatory labeling and stamping requirements under this Act;
19 
(iii) 
Due for repair, re-qualification or scrappage, or are subject to a
20 
recall or prohibition order of the DOE;
21 
(iv) 
For end consumers, whether for household or commercial use,
22 
by auto-LPG dispensing stations;
23 
(g) 
Refilling of single-use canisters or cartridges;
24 
(h) 
Refilling 
of canister or cartridges, not designed or intended for refilling
25 
of LPG due to non-compliance with the PNS, or not certified or allowed
26 
by the DTI;
27 
(i) 
Unauthorized loading of bulk LPG tanks; and
28 
(j) 
Any other filling or refilling of LPG pressure vessels in violation of the
29 
requirements and standards under this Act.
30 
Sec. 32. Hoarding. -  An LPG industry participant who, before a price increase
31 
or in times of tight supply, unduly accumulates LPG and LPG products beyond its
32 
normal inventory level and unreasonably limits or refuses to dispose of, sell, or
24


1 
distribute LPG or LPG products to the general public, even if the buyer or consumer
2 
has the ability to pay in cash for the LPG or LPG products shall be liable for
3 
hoarding. The determination of the normal inventory level shall be reckoned from
4 
the time the LPG industry participant started the business. The following conditions
5 
shall be prima facie evidence of hoarding:
6 
(a) 
The LPG industry participant has stocks of LPG or LPG products fifty
7 
percent (50%) higher than its normal inventory capacity; and
8 
(b) 
The LPG industry participant unreasonably limits, refuses, or fails to
9 
sell the same to the general public at the time of discovery of the
10 
stocks.
11 
Sec. 33. Penalties. -  Any person found in violation of the following acts shall
12 
have the following administrative and criminal penalties:
13 
(a) 
Section 29 (a) and (b):
14 
(i) 
First offense -  Fine of five thousand pesos (P5,000.00) for each
15 
day of operation without the required license or certificate,
16 
(ii) 
Second offense -  Fine of ten thousand pesos (P10,000.00) for
17 
each day of operation without the required license or certificate,
18 
and
19 
(iii) 
Third offense -  Fine of twenty thousand pesos (P20,000.00) for
20 
each day of operation without the required license or certificate,
21 
or in the case of Section 29 (aa) for every pressure vessel
22 
imported, and permanent disqualification from engaging in any
23 
activity as an LPG industry participant;
24 
(b) 
Section 29 (c), (d), (e), and (f):
25 
(i) 
First offense -  Fine of ten thousand pesos (P10,000.00) 
for
26 
every pressure vessel 
or seal 
manufactured, 
re-qualified,
27 
repaired, scrapped, imported, transacted, sold, or distributed
28 
without a valid license to operate, certificate of accreditation,
29 
certificate of conformity, or authority to import, whichever is
30 
applicable, and closure until the required licenses and permits
31 
are accomplished.
25


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(C)
(d)
(ii) 
Second offense -  Fine of twenty thousand pesos (P20,000.00) 
for every pressure vessel or seal manufactured, re-qualified, 
repaired, scrapped, imported, transacted, sold, or distributed 
without a valid license to operate, certificate of accreditation, 
certificate of conformity, or authority to import, whichever is 
applicable, closure until the required licenses and permits are 
accomplished, and upon conviction, imprisonment of at least six
(6) months but not more than two years, and
(iii) 
Third offense -  Fine of thirty thousand (P30,000.00) for every 
pressure vessel or seal manufactured, re-qualified, repaired, 
scrapped, imported, transacted, sold, or distributed without a 
valid license to operate, certificate of accreditation, certificate of 
conformity, or authority to import, whichever is applicable, 
closure, permanent disqualification from engaging in any activity 
as 
an 
LPG 
industry 
participant, 
and 
upon 
conviction, 
imprisonment of at least one (1) year but not more than three 
(3) years;
Section 29 (g) (i), (ii), and (iii):
(i) 
First 
offense -  
Fine 
of three 
hundred 
thousand 
pesos 
(P300,000.00),
(ii) 
Second offense -  Rne of five hundred thousand pesos 
(P500,000.00), suspension of license to operate, and upon 
conviction, imprisonment of at least one (1) year but not more 
than three (3) years,
(iii) 
Third offense -  Fine of one million pesos (P I,000,000.00), 
closure, permanent disqualification from engaging in any activity 
as 
an 
LPG 
industry 
participant, 
and 
upon 
conviction, 
imprisonment of at least three (3) years but not more than six 
(6) years;
Section 29 (g) (iv):
(i) 
First offense -  Fine of ten thousand pesos (P10,000.00),
26


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
1
(ii) 
Second offense -  Fine of twenty thousand pesos (P20,000.00)/ 
suspension of license to operate, and
(iii) 
Third offense -  Fine of thirty thousand pesos (P30,000.00), 
closure, and permanent disqualification from engaging in any 
activity as an LPG industry participant;
(e) 
Section 29 (h), (i), (j), (k), (I), (m), (n), (p), and (q)
(i) 
First offense -  Fine of twenty-five thousand pesos (P25,000.00) 
for every LPG pressure vessel manufactured, sold, distributed, 
destroyed, tampered, altered, or modified, and confiscation of 
the said LPG pressure vessels,
(ii) 
Second offense -  Fine of fifty thousand pesos (P50,000.00) for 
every LPG pressure vessel manufactured, sold, distributed, 
destroyed, tampered, altered, or modified, confiscation of the 
said LPG pressure vessels, suspension of the license to operate, 
and upon conviction, imprisonment of at least one (1) year but 
not more than three (3) years,
(iii) 
Third 
offense 
-  
Fine 
of one 
hundred 
thousand 
pesos 
(P100,000.00) for every LPG pressure vessel manufactured, 
sold, distributed, destroyed, tampered, altered, or modified, 
confiscation 
of 
the 
said 
LPG 
pressure 
vessels, 
closure, 
permanent disqualification from engaging in any activity as an 
LPG industry participant, and upon conviction, imprisonment of 
at least three (3) years but not more than six (6) years;
(f) 
Section 29 (o): Fine of one million pesos (P1,000,000.00), closure, and
upon conviction, imprisonment of at least three (3) years but not more
than six (6) years;
(g) 
Section 29 (r):
(i) 
First 
offense 
-  
Fine 
of 
one 
hundred 
thousand 
pesos 
(P100,000.00),
(ii) 
Second offense -  Fine of two hundred thousand pesos 
(P200,000.00), suspension of license to operate, and upon
27


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
1
conviction, imprisonment of at least six (6) months but not more 
than two (2) years, and
(iii) 
Third offense -  Fine 
of three hundred 
thousand pesos
(P300,000.00), closure, closure, permanent disqualification from 
engaging in any activity as an LPG industry participant, and 
upon conviction, imprisonment of at least three (3) years but 
not more than six (6) years;
(h) 
Section 29 (s), (t), and (x):
(i) 
First 
offense -  
Fine 
of 
one hundred 
thousand pesos
(P100,000.00),
(ii) 
Second offense -  Fine 
of two hundred 
thousand pesos
(P200,000.00), suspension of the license to operate, and upon 
conviction, imprisonment of at least six (6) months but not more 
than two (2) years, and
(iii) 
Third offense -  Fine 
of three hundred 
thousand pesos
(P300,000.00), 
closure, permanent 
disqualification 
from
engaging in any activity as an LPG industry participant, and 
upon conviction, imprisonment of at least three (3) years but 
not more than six (6) years;
(i) 
Section 29 (u), (v), and (w):
(i) 
First offense -  Fine of ten thousand pesos (P10,000.00) for 
every 
LPG 
pressure 
vessel 
or 
seal 
manufactured, 
sold, 
exchanged, bartered, distributed, transferred ownership or 
possession of, or possessed, whichever is applicable,
(ii) 
Second offense -  Fine of twenty thousand pesos (P20,000.00) 
for every LPG pressure vessel or seal manufactured, sold, 
exchanged, bartered, distributed, transferred ownership or 
possession of, or possessed, whichever is applicable, suspension 
of license to operate, and upon conviction, imprisonment of at 
least six (6) months but not more than two (2) years, and
(iii) 
Third offense -  Fine of thirty thousand pesos (P30,000.00) for 
every 
LPG 
pressure 
vessel 
or 
seal 
manufactured, 
sold.
28


1
exchanged, bartered, distributed, transferred ownership or
2
possession of, or possessed, whichever is applicable, closure.
3
permanent disqualification from engaging in any activity as an
4
LPG industry participant, and upon conviction, imprisonment of
5
at least one (1) year but not more than three (3) years;
6
0 )
Section 29 (z):
7
( i)
First offense -  Fine of five thousand pesos (P5,000.00) for every
8
LPG cylinder and a warning.
9
(ii)
Second offense -  Fine of ten thousand pesos (P10,000.00) for
10
every LPG cylinder and a suspension of the license to operate.
11
and
12
(iii)
Third offense -  Fine of twenty thousand pesos (P20,000.00) for
13
every LPG cylinder, closure, and permanent disqualification from
14
engaging in any activity as an LPG industry participant;
15
( k )
Section 29 (y) and (aa): Fine of one million pesos (P1,000,000.00) and
16
upon conviction, imprisonment of at least six (6) months but not more
17
than two (2) years. In the event that the violator is an LPG industry
18
participant, 
the 
administrative 
penalty will 
include closure and
19
permanent disqualification from engaging in any activity as an LPG
20
industry participant;
21
(1)
Sections 29 (bb) and (cc):
22
( i)
First offense -  Fine of twenty thousand pesos (P20,000.00),
23
(ii)
Second offense -  Fine of fifty thousand pesos (P50,000.00),
24
suspension of its license to operate, and
25
(iii)
Third 
offense 
-  
Fine 
of one 
hundred 
thousand 
pesos
26
(P100,000.00), closure, and permanent disqualification from
27
engaging in any activity as an LPG industry participant;
28
( m )
Section 29 (dd):
29
(i)
First 
offense -  
Fine 
of three 
hundred 
thousand 
pesos
30
(P300,000.00),
31
(ii)
Second offense -  Fine of five 
hundred thousand 
pesos
32
(P500,000.00), suspension of license to operate, and
29


1 
(iii) 
Third offense -  Fine of one million pesos (P I,000,000.00),
2 
closure, and permanent disqualification from engaging in any
3 
activity as an LPG industry participant;
4 
(n) 
Sections 30 and 31:
5 
(i) 
First offense -  Fine of ten thousand pesos (P20,000.00) for each
6 
underfilled or illegally refilled pressure vessel,
7 
(ii) 
Second offense -  Fine of twenty thousand pesos (P30,000.00)
8 
for each underfilled or illegally refilled pressure vessel, and upon
9 
conviction, imprisonment of at least six (6) months but not more
10 
than two years, and
11 
(iii) 
Third Offense -  Fine of thirty thousand pesos (P40,000.00) for
12 
each underfilled or illegally refilled pressure vessel, closure,
13 
permanent disqualification from engaging in any activity as an
14 
LPG industry participant, and upon conviction, imprisonment of
15 
at least one (1) year but not more than three (3) years.
16 
The illegally refilled LPG cylinders in Section 31 (c), (d), (e), (f), (g),
17 
(h), and (i) shall be confiscated outright; and
18 
(o) 
Section 32: Fine of thirty thousand pesos (P30,000) for each LPG
19 
product beyond its normal inventory capacity, and upon conviction,
20 
fine of not less than one million pesos (P1,000,000.00) but not more
21 
than ten million pesos (P10,000,000.00), permanent disqualification
22 
from engaging in any activity as an LPG industry participant, and
23 
imprisonment of at least one (1) year but not more than three (3)
24 
years.
25 
If the offender is an alien, the person shall be deported immediately,
26 
without further proceedings, after the service of sentence.
27 
Sec. 34. Violations by Juridical Entities. -  If the violation is committed by a
28 
corporation, partnership, 
association or other juridical entity, the penalty of
29 
imprisonment shall be imposed on the responsible directors or officers thereof. Any
30 
new juridical entity formed by persons or agents of such persons previously found in
31 
violation of the prohibited acts under this Chapter for the the third time, shall be
30


1 
permanently disqualified from engaging in any activity as an LPG industry
2 
participant.
3 
Sec. 35. Suspension, Cessation, and Closure. 
-  Nothing in this Chapter shall
4 
preclude the DOE from ordering the suspension or cessation of the operation of the
5 
facility, or the closure thereof until such time that the mandatory requirements or
6 
corrective measures directed by the DOE have been met.
7 
Sec. 36. Initiation o f administrative action by the DOE. -  An administrative
8 
action shall be initiated by the DOE through the issuance of a show cause order to
9 
the LPG industry participant, giving the latter the opportunity to explain in writing
10 
within the period prescribed by DOE: Provided, That the entire administrative
11 
proceeding shali not exceed sixty (60) calendar days from issuance of a show cause
12 
order to the final resolution by the DOE. 
The DOE shaii have the discretion to
13 
conduct a hearing pertaining to the violation, or to impose an outright penalty based
14 
on the merits of the written explanation.
15 
Sec. 37. Imposition o f preventive suspension order. - During the pendency of
16 
an administrative proceeding, the DOE may suspend the operations of an LPG
17 
industry participant within a maximum period of sixty (60) calendar days to prevent
18 
undue interference on the ongoing investigation and tampering of evidence.
19 
Sec. 38. Impoundment and Disposition o f Impounded evidence. - The DOE
20 
and other duly authorized law enforcement agencies shali be authorized to impound
21 
LPG, LPG products, LPG pressure vessels, ancillary equipment, motor vehicles used
22 
in the transportation 
of LPG 
and filled 
LPG 
pressure vessels, 
and 
other
23 
appurtenances as evidence of the violations under this act. The final disposition of
24 
the impounded evidence shall be subject to the final resolution of the administrative
25 
or criminal case, whichever may be applicable.
26
27 
CHAPTER X I
28 
FINAL PROVISIONS
29 
Sec. 39. Sharing o f Fines and Penalties. -  The city or municipaiity where the
30 
principal place of business of an LPG industry participant is located shall be allotted a
31 
forty percent (40% ) share of the proceeds from fines and penalties collected by the
31


1 
DOE from the concerned LPG industry participant: Provided, that the remaining sixty
2 
percent (60% ) shall be used by the DOE to implement the provisions of this act.
3 
Sec. 40. Utilization o f LGU Share. -  The LGU shall use its share from the fines
4 
and penalties collected pursuant to Section 39 of this Act exclusively for the purpose
5 
of transporting, hauling, storing, decanting, and disposing confiscated LPG, LPG
6 
products, pressure vessels, ancillary equipment, and other appurtenances.
7 
Sec. 41. Implementing Rules and Regulations. -  The DOE together with the
8 
DTT, and in consultation with the concerned government agencies and stakeholders,
9 
shall promulgate the implementing rules and regulations of this Act within sixty (60)
10 
days from its effectivity. All guidelines, regulations, and other issuances mandated
11 
to be promulgated in this Act shall be issued within sixty (60) days from the
12 
promulgation of this Act's implementing rules and regulations.
13 
Sec. 42. Transition Period. -  The DOE shall, upon prior consultation with the
14 
LPG industry participants and other government agencies and taking into account
15 
data obtained from LPG industry participants and other sources, determine the
16 
appropriate transition period to allow for compliance by all LPG industry participants
17 
with the objectives of this Act: Provided, That such transition period shall not be
18 
beyond six (6) months from the effectivity of this Act's implementing rules and
19 
regulations.
20 
Sec. 43. 
Congressional oversight — The Joint Congressional Energy
21 
Commission shall exercise oversight powers over the implementation of this Act.
22 
Sec. 44. Construction and Interpretation. -  Any doubt in the interpretation of
23 
any provision in this Act shall be interpreted in favor of the interests of the
24 
consumers particularly to ensure access to reasonably priced LPG and the safety of
25 
the consumers and the general public.
26 
Sec. 45. Separability Clause. -  If for any reason, any chapter, section or
27 
provision of this Act shall be declared unconstitutional, illegal, or invalid, such parts
28 
not affected thereby shall remain in full force and effect.
29 
Sec. 46. 
Repealing 
Clause. 
-  
All 
laws, 
decrees, 
executive orders,
30 
proclamations and administrative regulations, or parts thereof inconsistent herewith
31 
are hereby repealed or modified accordingly.
32


Sec. 47. 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,
33