FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
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INTRODUCED BY THE HONORABLE MAR ROUS 
EXPLANATORY NOTE 
This bill seeks to establish the monitoring and supervisory framework for the 
Liquefied Petroleum Gas (LPG) industry in order to strengthen and enhance existing 
standards and mechanisms against deceptive and harmful practices and other hazards to 
public health and safety arising under a deregulated downstream oil industry structure. 
The LPG is a widely used fuel commodity in the Philippines, accounting for a 
significant portion of the country's total oil demand. Since Filipino households commonly 
use LPG for cooking, the safety of LPG use is a concern shared by most consumers. In the 
last three years, more than 3,000 fire incidents nationwide, leading to loss of lives and 
properties, were attributed to improper or indiscriminate handling of LPG. Around four 
million dilapidated LPG cylinders are reportedly circulating in Metro Manila alone. 
In 2001, the Department of Trade and Industry (DTI), together with the Department 
of Energy (DOE), the Department of Interior and Local Government (DILG), and the 
Philippine Liquefied Petroleum Gas Association (PLPGA), launched a wide-ranging 
campaign to protect consumers from the proliferation of sub-standard and defective steel 
LPG cylinders. One of the key actions undertaken in this campaign was a three-month long 
preventive recall and replacement initiative known as "Sauli-Palit." 
During the course of its spot inspections, it was discovered by the DTI Bureau of 
Product Standards (DTI-BPS) that random samples of 11-kilogram LPG cylinders 
manufactured by the Laguna-based company Pilipinas Daecheng Steel Incorporated (PDSI) 
did not conform with Philippine standard quality and safety parameters. Through "Sauli- 
Palit," DTI sought to recall and re-qualify the 44,000 11-kilogram LPG cylinders 
manufactured (between December 2000 to April 2001) and distributed by PDSI and the 
destruction and replacement of defective tanks. 
The DTI-led campaign promoted vigilance in the extensive crackdown on sub- 
standard LPG cylinders. New and comprehensive legislation is still needed, however, to 
sustain, institutionalize, and upgrade LPG industry standards and to establish the supervisory 
framework for the industry's monitoring system. 
The proposed act will give additional powers and functions to the DOE, as the lead 
agency, as well as the DTI, DILG, and local governments, to enable organized and 
coordinated efforts in the monitoring and inspection of the participants of the LPG industry 


to ensure their compliance with national product quality and environmental, worker safety, 
and consumer welfare standards. 
In view of the foregoing, approval of this bill is earnestly requested. 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
) 
S E N A T E  
S. NO. 'lasr 
- 
INTRODUCED BY THE HONORABLE MAR ROXAS 
AN ACT 
TO ESTABLISH THE MONITORING AND SUPERVISORY FRAMEWORK FOR THE 
LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, PROVIDE ADDITIONAL 
POWERS TO THE DEPARTMENT OF ENERGY, DEFINE AND PENALIZE CERTAIN 
ACTS 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
ARTICLE I 
GENERAL PROVISIONS 
SECTION 1. Title. - This Act shall be known as the 'ZPG Industiy Act of2007." 
SEC. 2. Declaration of Policy. - It shall be the policy of the State to establish a 
monitoring and supervisory framework for the refining, importation, refilling, re- 
qualification, distribution, and marketing processes of the Liquefied Petroleum Gas 
(hereafter referred to as "LPG) industry to promote the general welfare, encourage the 
establishment of standards of conduct and codes of practice for LPG businesses, and address 
the quality and safety concerns under a deregulated downstream oil industry structure. 
Consequently, the State shall rationalize all applicable laws and executive issuances on the 
LPG industry to strengthen and enhance existing mechanisms against hazards to health and 
safety, and deceptive and unconscionable trade acts and practices within the industry. To 
this end, the State shall undertake the implementation of this Act primarily through the 
Department of Energy, in coordination with the Department of Trade and Industry, the 
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Department of Justice, the Department of Interior and Local Government, and other 
appropriate government agencies and instrumentalities. 
SEC. 3. Definition of Terms - For the purposes of this Act, the following terms are 
herein below defined: 
(a) “DENR”shal1 refer to the Department of Environment and Natural Resources; 
(b) “DILG”shal1 refer to the Department of Interior and Local Government; 
(c) “DOE”shal1 refer to the Department of Energy; 
(d) “DOSTshall refer to the Department of Science and Technology; 
(e) “DTT’shall refer to the Department of Trade and Industry; 
(9 “LGU” and “LGUs”shal1 refer to a local government unit or local government 
units, respectively; 
(g) “PNP”shal1 refer to the Philippine National Police; 
(11) “SECshall refer to the Securities and Exchange Commission; 
(i) “Accreditation” shall refer to the formal recognition given by DTI that a re- 
qualifier of LPG cylinders has complied with PNS 17025:2000, “General Requirements for 
the Competence of Testing and Calibration Laboratories,” and PNS 03:2000, “Steel Cylinders 
for Liquefied Petroleum Gas,” Part 2 - “Method of Re-qualification;” 
(j) “Ancillary Equipment” shall refer to such equipment, parts, and other devices 
necessary and indispensable for the safe and proper operation of an LPG system such as, but 
not limited to, valves, hoses, and regulators; 
(IC) “Basel Convention” shall refer to the international accord, which governs the 
trade or movement of hazardous and toxic waste across borders, the “Basel Convention on 
the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal adopted 
by the Conference of PIenipotentiaries” on 22 March 1989; 
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(1) “Brand Owner” shall refer to a person, natural or juridical, owning the brand, 
name, logo, color, mark, and/or distinction as registered with the DTI; 
(m)“Bulk Consumer” shall refer to any person or entity whose regular use or 
consumption of LPG requires bulk storage of LPG; 
(n) “Bulk Loader”shal1 refer to any person or entity, which engages in transportation 
and carriage of LPG in large quantities in barges, rail or road tankers, bullet trucks and 
similar transportation facilities; 
(0) “Bulk Supplier”shal1 refer to any person who engages in the sale or distribution of 
LPG in such large quantities. 
(p) “Certification” shall refer to the written assurance given by DTI that the LPG 
cylinder has complied with PNS 03:2000, “Steel Cylinders for Liquefied Petroleum Gas”, 
Part 1 - “Specification” and Part 3 - “Requirement for Repair;” 
(4) “Consumer” shall refer to any person who purchases LPG for one’s own 
consumption; 
(r) “Cross Filling”shal1 refer to the filling of cylinders by a person other than by the 
brand owner; 
(s) “Cylinder” or “LPG Cylinder” shall refer to any portable pressure-vessel or 
container for LPG, designed for the transportation and storage of LPG; 
(t) “Cylinder Industry Participants” shall refer to persons or entities engaged in 
activities or businesses related to the manufacture, importation, transportation, sale and 
distribution of LPG cylinders and ancillary equipment, including but not limited to, cylinder 
and ancillary equipment manufacturers and importers, re-qualifiers, repairers, scrapping 
centers, cylinder seal manufacturers and such other: 
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(u) “Cylinder Owner”shal1 refer to the owner of the cylinder as shown by the brand, 
mark, trade name or business name embossed or engraved or otherwise permanently 
indicated OR the cylinder in the manner prescribed by the DTI and the DOE; 
(v) “Cylinder Swapping” shall refer to the industry practice of exchanging LPG 
cylinders; 
(w) “Deficrive cylinder”shal1 refer to damaged, unsafe and dilapidated cylinders due 
to corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar defects that 
render the cylinder unsafe for distribution in accordance with the guidelines set by the DTI, 
thus creating a substantial risk of injury to the public; 
(x) “Dealer” shall refer to any person involved in the sale or trading of LPG in 
cylinders to consumers andor retail outlets; 
(y) “Hauler” shall refer to any person involved in the distribution and delivery of 
LPG in cylinders from one place to another, whether engaged in such activity for purposes of 
directly selling to consumers or otherwise; 
(z) “Importer”shal1 refer to any person engaged in the importation of LPG whether 
for processing, sale or own use; 
(aa)”lndusrry Participants” shall refer to persons or entities engaged in activities or 
businesses related to the manufacture, importation, transportation, sale and distribution of 
LPG, such as Cylinder Industry Participants and LPG Industry Participants as defined in this 
Act; 
(bb) “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 PNS 22; 
(cc)”LPG Industry Partic@mrs”shall refer to persons or entities engaged in activities 
or businesses related to the manufacture, importation, transportation, sale and distribution of 
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LPG, including but not limited to LPG refiners, LPG importers, re-fillers; piped LPG 
providers, haulers, dealers, service stations, retail outlets and seal manufacturers; 
(dd) “Marketef’shall refer to any person, whether natural or juridical, engaged in 
the sale of LPG, whether in bulk or retail; 
(ee) 
“Petroleum pmducts” shall refer to the products formed in the course of 
refining crude petroleum through distillation, cracking, solvent refining and chemical 
treatment coming out as primary stocks from the refinery such as but not limited to LPG, 
naphtha, gasoline, solvent, kerosene, aviation fuels, oils, waxes and petrolatum, asphalts, 
bitumen, coke and refinery sludge, or such refinery petroleum fractions which have not 
undergone any process or treatment as to produce separate chemically-defined compounds in 
a pure or commercially pure state and to which various substances may have been added to 
render them suitable for particular uses, provided that the resultant product contains not less 
than fifty percent (50%) by weight of such petroleum products; 
(fq “Philippine National Standards”or “PNS”sha1l refer to the standard promulgated 
by the Bureau of Product Standards (BPS) of the DTI relating to product specifications, test 
methods, terminologies and standardization procedures, guidelines or practices; 
(gg) 
“Piped LPG Provider” shall refer to any person engaged in the business of 
supplying or distributing LPG to consumers through a pipeline system, including operators of 
central storage compounds for piped LPG or reticulated system facilities; 
(hh) “Pipeline System”shal1 refer to a network of pipes or similar conduits used for 
the conveyance of LPG from the piped LPG provider to consumers; 
(ii) “Primaqv Storage Facilities”shal1 refer to the plant, depot, equipment and other 
attendant facilities, such as underground caverns, refrigerated tanks, and pressurized steel 
tanks, used for storage of LPG; 
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(jj) “Qualiiied LPG Serviceman” shall refer to an individual who has been trained, 
qualified and certified by the DOE or any deputized agency thereof, or to an individual who 
has successfully completed an approved training course for LPG servicemen in a training 
school duly recognized and accredited by the Philippine government; 
(kk) “RefiIIer”shal1 refer to (1) a service provider authorized by a cylinder owner to 
refill cylinders on the latter’s behalf: or (2) any person or entity who refills LPG into one’s 
own cylinders; 
(11) “Refilling PIant”shal1 refer to any installation that is used for refilling LPG into 
cylinders and has LPG bulk storage and refilling facilities therefore; 
(mm) ‘“Refiner” shall refer to any person who refines LPG through distillation, 
conversion and treatment of crude oil and other naturally occurring petroleum 
hydrocarbons; 
(nn) “Re-quaIification”shal1 refer to the method or procedure by which a cylinder 
is subjected to inspection and reevaluation by DTI in accordance with the specifications set 
forth in the PNS 03-2000, “Steel Cylinders for Liquefied Petroleum Gas,” Part 2 - “Metliod of 
Re-qualification to determine its acceptability for continuous use and distribution and 
subsequent repair or scrappage, where appropriate;” 
(00) “Re-quaIifer”shal1 refer to any person duly accredited by the DTI pursuant to 
this Act to engage in the business of re-qualifying LPG cylinders; 
(pp) 
“Repair”shal1 refer to the removal and replacement of parts or attachments of 
LPG cylinders or the performance of any other necessary corrective measures to restore the 
fitness of LPG cylinders for refilling and distribution; 
(qq) “Repairer” shall refer to any person or entity duly certified by the DTI to 
engage in the business of repairing LPG cylinders; 
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(rr) “Retail Outlet” shall refer to any entity that sells LPG cylinders directly to a 
consumer in quantities as may be determined by the DOE; 
(ss) “Reticulated System”shal1 refer to a means of supplying LPG through a pipeline 
network from a centralized cylinder bank or bulk installation to multiple customers situated 
in a common locality;” 
(tt) “Scrappage”shal1 refer to the destruction of defective LPG cylinders declared by a 
re-qualifier or the DTI to be unfit for use; 
(uu) “Scrapping Center”shal1 refer to any person or entity engaged in the business 
of disposing defective LPG cylinders; 
(w) “Seal” shall refer to the protective cover placed on the valve of an LPG 
cylinder; 
(ww) ”Service Station”shal1 refer to a retail establishment engaged in the business of 
selling LPG in cylinders as a retail outlet and in distributing and dispensing of LPG to 
consumers for automotive use. It shall be deemed a dealer or retail outlet for purposes of this 
Act; 
(xx) “Tare weighf’shall refer to the net weight of the LPG cylinder excluding-its 
contents, as engraved in the collar and painted in the body thereof and shall be expressed in 
kilograms in accordance with the specifications as may be prescribed by the DTI. 
ARTICLE I1 
IMPLEMENTING AGENCIES 
SEC. 4. LeadAgency. - The DOE shall be the primary government agency responsible 
for the implementation and enforcement of this Act. The DOE shall supervise and monitor 
the LPG industry and its participants to ensure compliance with national product quality, 
environmental and worker safety, and consumer welfare standards. 
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SEC. 5. Additional Powers and Functions of the DOE Secretay. - In connection with 
the enforcement of this act and in addition to hisher powers and functions under existing 
laws, the DOE Secretary shall have the following powers and functions: 
(a) Administer and supervise the enforcement and implementation of this Act, 
including the promulgation of Implementing Rules and Regulations, and issuance, from time 
to time, of other regulations, orders or circulars necessary to implement this Act; 
(b) Formulate and implement policies, programs and regulations on the LPG 
industry, including the importation, exportation, stockpiling, storage, shipping, 
transportation, refining, processing, marketing and distribution of LPG, whether distributed 
in cylinders, through pipelines or other means, to ensure that product quality, environmental 
and worker safety, and consumer welfare standards are met; 
(c) Inspect and evaluate LPG and LPG cylinders in circulation, at any time fiorn and 
after its purchase by a refiner, marketer, or refiller, and while it is in circulation or intended 
for distribution to the public, for purposes of determining conformity to established quality 
and safety standards for LPG cylinders developed and established by the Bureau of Product 
Standards (BPS); 
(d) Establish safety standards for refilling plants, depots, storage areas, transportation 
and other facilities of LPG industry players and inspect and evaluate refilling plants, depots, 
storage areas, transportation and other facilities or business premises of LPG Industry 
Participants to ensure compliance to safety standards; 
(e) Direct LPG brand owners, refillers, dealers and retail outlets to periodically 
submit cylinders for re-qualification, and to secure proper proof of compliance therewith in 
accordance with the requirements of DTI; 
(f) Investigate, motupropio or upoii report of any person, possible ihfractions of this 
Act by industry participants, and initiate the necessary actions warranted under the 


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circumstances, including the recall, prohibition, forfeiture or seizure of substandard LPG and 
LPG cylinders as well as illegally filled LPG cylinders as defined in Article VI of this Act, the 
filing of charges with the proper court or government agency, and the enforcement of 
administrative sanctions as provided under this Act; 
(g) Recommend to the concerned LGUs the suspension or revocation of the business 
permits or licenses of LPG industry participants who violate the provisions of this Act; 
(h) Issue Standards Compliance Certificates to LPG industry participants in 
accordance with Article 11 1 of this Act, and to revoke the same; 
(i) Impose and collect administrative fines for violation of this Code, as well as fees 
or similar charges for its services, including the processing of applications for Standards 
Compliance Certificate and collection of administrative fines for violations of this Act; 
(j) Create and maintain a central database of industry participants, and an inventory 
of existing and projected LPG supply levels in the industry, which shall be updated monthly 
through its own initiative and through reports of LPG industry participants; 
(k) Investigate and keep a record of incidents of injury or damage to person or 
property, caused by or attributable to the improper production, storage, handling or use of 
LPG for purposes of prosecuting or filing the appropriate action against responsible persons; 
(1) Establish and develop research and training programs to develop new uses for 
LPG, promote improved and innovative methods and technologies for safe and efficient 
production, storage, handling or use of LPG, and to foster public awareness thereof; 
(m)Consult and coordinate, on a regular basis, with LPG industry participants, 
associations and consumers in furtherance of the objectives of this Act; 
(n) Coordinate with other government agencies, bodies and instrumentalities to 
ensure the effective implementation of this Act; 
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(0) Exercise such other powers and functions as may be necessary or incidental to 
attaining the objectives of this Act; and 
(p) 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 of the tanks. 
SEC. 6. Powers and Functions of DTI. - Under this Act, the DTI shall have the 
following exclusive powers and functions: 
(a) Develop, formulate, promulgate, review and revise 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 upon repair or re- 
qualification, and certify to their conformity to PNS and their fitness for public sale and 
distribution; 
(c) Inspect and evaluate ancillary equipment, whether manufactured locally or 
imported and certify to their conformity to PNS and their fitness for public sale and 
distribution; 
(d) Grant accreditation and certification to re-qualifiers, repairers, scrapping centers, 
cylinder and seal manufacturers and other independent, competent, private persons, and 
entities that provide products and services to ensure compliance by industry participants 
with the PNS for LPG cylinders and ancillary equipment, in accordance with Article 11 1 of 
this Act, and to revoke the same; and 
(e) Extend all necessary assistance to the DOE in the implementation of measures in 
furtherance of the objectives of this Act. 
SEC. 7. Powers and Functions of DILG. - Under this Act, the DILG shall have the 
LJ 
following powers and functions: 
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(a) Coordinate with LGUs and the PNP for the orderly and effective implementation 
of this Act, and of the orders, rules, regulations and issuances pursuant thereto, including 
recommendations for the suspension or revocation of business permits or licenses of LPG 
industry participants found to be in violation of this Act; 
(b) Coordinate with the DOE and the DTI in the dissemination of information 
relevant to the implementation o f this Act, particularly to the LGUs and the PNP; and 
(c) Extend all necessary assistance to the DOE with respect to the enforcement of 
measures in furtherance of this Act. 
SEC. 8. Powers and Functions of LGUs. - LGUs, on their own initiative or upon 
recommendation of the DOE and upon due notice and hearing, shall have the power to 
suspend or revoke the business permit or license of any LPG industry participant within 
their respective areas of jurisdiction for violation of the provisions of this Act: Provided, That 
upon notice by the DOE of revocation of the Standards Compliance Certificate of an LPG 
industry participant issued by the DOE under Article I11 of this Act, the LGU shall 
immediately revoke the business permit or license of said LPG industry participant. 
SEC. 9. Technical Working Group. - The DOE shall be authorized to convene a 
Technical Working Group to assist the DOE, through review and recommendation of rules 
and regulations, policies, safety standards and PNS affecting the LPG "industry. 
The 
Technical Working Group shall be composed of representatives of the implementing 
agencies and industry participants. Industry representation in the Technical Working Group 
shall be determined through consultation among the industry participants. 
ARTICLE I11 
MONITORING AND ENFORCEMENT MECHANISMS 
SEC. 10. Undertaking to Comply with Requirements. - Any person or entity who 
intends to engage in any business or activity which shall render it an industiy participant as 


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defined in this Act, shall undertake to comply with the requirements of this Act, its 
implementing rules and regulations, and such other issuances of the DOE, under a verified 
instrument to be executed in such form as required by the DOE or the DTI, as the case may 
be. 
Due filing of the verified undertaking shall be a condition precedent for the issuance 
of the Standards Compliance Certificate required under this Act: Provided, That submission 
of such undertaking does not exempt such person or entity from securing any other 
certification of quality, health, safety, security, or environmental clearance from the proper 
governmental agencies or instrumentalities. 
Any person or entity intending to import or export LPG or LPG cylinders shall, in 
addition to the requirement for a verified undertaking, furnish a report to the DOE prior to 
his or its every importation or exportation: Provided, That all LPG and LPG cylinder 
importations shall be in accordance with the Base1 Convention. 
SEC. 11. Reports and Disclosures to DOE or DTL - The DOE or the DTI, as the case 
may be, shall have the power and authority to require industry participants to submit 
written, electronic or other form of reports or disclosures, as they may deem reasonable and 
necessary to perform their functions under this Act. Any industry participant who fails to 
submit any such report or disclosure within the period and in the manner prescribed by the 
DOE or the DTI shall be penalized under this Act. 
SEC. 12. Central Database of Industv Parfiu>ants, - The central database of LPG 
industry participants shall include their corporate or business name or trade name; principal 
office or business address; primary purpose or nature of business; registered brand name or 
logo for LPG, LPG cylinder, facilities and equipment; haulers, dealers, retail outlets and 
cylinder seal manufacturers; amount and status of performance bond, where required under 
this Act; violations committed or incidents relating to such violations, if any; agreements 
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with other industry participants, such as for cross-filling and similar arrangements; list of 
lost, stolen or missing LPG cylinders; and such other relevant information as may be 
determined by the DOE or the DTI, as the case may be. 
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The central database shall be created jointly by the DOE and the DTI within one (1) 
year from the effectivity of this Act. This central database shall be updated on a monthly 
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basis and shall be made available to the public and through the Internet. 
SEC. 13. Standards Compliance Certificate. - 
(a) Requirement Prior to Engaeing in Business. - Any person or entity intending 
to engage in business involving LPG, LPG cylinders or ancillary equipment or in any activity 
that shall render it an industry participant as defined in this Act shall secure its Standards 
Compliance Certificate from the DOE or the DTI, as the case may be, prior to 
commencement of commercial operations and annually thereafter. 
For purposes of this Act, the Standards Compliance Certificate shall certify that such 
person or entity has complied with the safety rules and regulations prescribed by the DOE or 
the DTI applicable to the particular classification of industry participant defined by this Act: 
Provided, That, a brand owner shall be responsible for the: 
1) proper manufacture, maintenance, and re-qualification of all its cylinders prior to 
the release thereof to the public, in accordance with this act; 
2) proper filling of cylinders; 
3) assurance that LPG is readily available at his refilling plant/s for refilling into his 
own cylinders; and 
4) refilling of his own cylinders, unless authorized by another brand owner. 
No industry participant shall engage in business without first having duly secured a 
Standards Compliance Certificate. Any industry participant that subsequently engages in an 
activity or business involving LPG or LPG cylinders outside of the scope of its Standards 
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Compliance Certificate shall duly notify the DOE or the DTI, as the case may be, and secure 
the proper Standards Compliance Certificate for the said new activity or business, where 
deemed necessary by the DOE or the DTI, as the case may be. 
The DOE shall prescribe specific guidelines for compliance of retail outlets, dealers 
and haulers in remote areas outside Metro Manila, in which case the verified undertaking 
required under this Article may be submitted through registered mail, without prejudice to 
the conduct of a standards compliance inspection. 
(b) Persons or Entities Alreadv Engaged in LPG Business. - Subject to the 
provisions of Section 63 of this Act, any industry participant already legally engaged in 
business upon effectivity of this Act shall obtain a Standards Compliance Certificate prior to 
the renewal of its business license and annually thereafter, in accordance with the rules, 
regulations, and guidelines issued by the DOE or the DTI, as the case may be. 
,
.
 
(c) Bulk Consumers. - A bulk consumer shall be required to secure a Standards 
Compliance Certificate from the DOE prior to its storage of LPG, and annually thereafter 
prior to its renewal of business permit: Provided, That if the bulk consumer has secured a 
similar certificate from the Department of Labor and Employment (DOLE) and the Bureau of 
Fire Protection (BFP), such certificate from these agencies shall be deemed substantive 
compliance under this act. 
(d) Rewired Submissions for Standards Compliance Certificate. - A Standards 
Compliance Certificate shall only be issued upon a satisfactory finding of the applicant’s 
compliance with the provisions of this Act and submission of requirements, which may 
include the following, where applicable: 
1) Certification of compliance of applicant’s facilities with fire safety laws and 
regulations from the Bureau of Fire Protection (BFP); 
2) Environmental Compliance Certificate (ECC) from the DENR; 
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3) Product liability insurance certificate from an insurer duly registered with and 
licensed by the Insurance Commission; 
4) Permits on suitability, safety and soundness of plant and facilities for the proposed 
or existing operation; 
5) Compliance with the provisions of Presidential Decree No. 11 85, otherwise 
known as the Fire Code of the Philippines and/or pamphlet 58 of the National Fire 
Protection Association (NFPA 58), otherwise known as the “Liquefied Petroleum Gas Code”; 
and 
6) Such other documents or requirements as the DOE or the DTI may prescribe as 
necessary for the effective implementation of this Act. 
(e) Renewal and Postin? of Standards Compliance Certificate. - The Standards 
Compliance Certificate shall be renewed annually and shall be prominently posted or 
displayed in a public, accessible and conspicuous area within the business premises of the 
industry participant. 
SEC. 14. Certificate of Accreditation for Manufacturers, Re-qualifiers, Repairers of 
LPG Cylinders and Cylinder Seal Manufacturers - Prior to the commencement of its 
operations and annually thereafter, any person who intends to engage in the business of 
manufacturing, re-qualifying, or repairing LPG cylinders, shall obtain a Certificate of 
Accreditation from the DTI prior to the commencement of its operations and annually 
thereafter. 
Any person already engaged in the business of re-qualification, repair, scrappage or 
cylinder and seal manufacturing upon the effectivity of this Act shall apply for a Certificate 
of Accreditation from the DTI prior to the renewal of its business permit. 
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SEC. 15. Monitoring and Standards Compliance Inspection. - 
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(a) Monitoring of Facilities and Eauipment. - The DOE shall monitor the refining, 
importation and distribution of LPG and conduct annual inspections of refinery, storage, 
hauling, transportation, refilling, or installation facilities and equipment to ensure that clean, 
environmentally-safe and worker-benign technologies are applied, and to ensure conformity 
with quality and safety standards and other mandatory requirements under this Act. 
(b) Standards Compliance Inspection. - The DOE shall not issue a Standards 
Compliance Certificate unless it is shown, upon proper conduct of standards compliance 
inspection, chat the industry participant has complied with this Act and such other rules and 
regulations as may be prescribed by the DOE. 
(c) Frequencv of Standards Compliance Inspection. - The DOE may, motupropio or 
upon a verified statement or complaint by any person, conduct regular or random 
inspections of the refinery, storage, hauling, transportation or installation facilities and 
equipment of industry participants as it may deem reasonable and necessary to implement 
the purposes of this Act. 
(d) Conduct of Standards Compliance Inspection. - The DOE shall prescribe 
guidelines for the proper conduct of the standards compliance inspection, including but not 
limited to the scope of the relevant premises and records as may be subject to inspection. 
SEC. 16. Requirement for Business Permit. - The Standards Compliance Certificate - 
provided under Section 13 of this Act shall be a mandatory requirement for the grant or 
renewal of any local government license or permit to engage in business involving LPG, LPG 
cylinders, or ancillary equipment, 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. 17. Performance Bond. - 
(a) Performance Bond Required. - A performance bond shall be required of all LPG 
refiners, importers and other bulk suppliers; cylinder manufacturers, repairers and re- 
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qualifiers; cylinder importers, refillers, bulk loaders, haulers, piped gas providers, and 
cylinder seal manufacturers, and other LPG industry players, depending on the type of 
business to be established prior to engaging in such business and as a condition precedent to 
the grant of a Standards Compliance Certificate by the DOE or the DTI, as the case may be: 
Provided, That on the first year of implementation of this Act, such bond shall be posted not 
later than six (6) months from effectivity of this Act. 
The performance bond shall answer for such administrative fines as may be imposed 
for violations of this Act. 
(b) Amount of Bond. - Within sixty (60) days from effectivity of this Act, the.DOE 
shall, in consultation with the DTI and the industry participants, prescribe the schedule of 
amounts required for performance bond, which shall be reviewed and adjusted every two (2) 
years: Provided, That the DOE shall have the authority to increase or decrease the required 
amounts for the performance bond, upon prior consultation with the DTI and the industry 
participants and other concerned sectors. 
(c) Maintenance of Bond. - The performance bond shall be maintained at the 
required amount and shall be hlly replenished within thirty (30) days from any charge or 
liability deducted therefrom, as well as on the close of business hours on the thirty-first of 
December of every year. Failure to maintain or replenish the bond accordingly shall be a 
ground for revocation of the Standards Compliance Certificate and business license or 
permit. 
(d) Publication of Non-Bonded LPG Businesses. - The DOE or the DTI, as the case 
may be, shall publish a list of non-bonded LPG businesses in a newspaper of general 
circulation and in such frequency as it may deem necessary, to disseminate to the public that 
said businesses have failed or refused to comply with their obligation to post bond and such 
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other relevant information. 
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SEC. 18. Issuance OfReceipts. - 
(a) Transactions in Bulk. - All transactions involving the sale or transfer of LPG 
in bulk must be covered by a form bearing, in addition to other requirements under 
applicable laws, the following information: 
1) registered name of the seller; 
2) address of the seller; 
3) date of the transaction; 
4) quantity or volume of the product; 
5) plate number of transporting trucks or registered name of transporting barge; 
6) total price of the transaction; and 
7) such other information as may be prescribed by the DOE with the concurrence of 
affected industry players . 
(b) Transactions in Cylinders. - All transactions involving the sale or transfer of 
LPG from dealers to retail outlets and to direct consumers must be covered by an official 
receipt or sales invoice bearing, in addition to other requirements under applicable laws, the 
following information: 
1) registered name of the seller; 
2) address of the seller; 
3) date of the transaction; 
4) brand of LPG; 
5) net weight or weight of the LPG contained in the cylinder; 
6) unit price per cylinder; 
7) total price of the transaction; and 
8) such other information as may be required by the DOE. 
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All other transactions involving the sale or transfer of possession or ownership of LPG 
from one industry participant to another must likewise be covered by an official receipt or 
other written instrument bearing the above information, as applicable. 
SEC. 19. Declaration of LPG Cylinder as Injurious, Unsafe or Dangerous. - When the 
DOE finds, motupropio or upon petition of any person, that an LPG cylinder is defective and 
hence, possibly injurious, unsafe or dangerous, it shall, after due notice and hearing, issue the 
appropriate order for its immediate confiscation, recall, seizure, impoundment or prohibition 
from public sale or distribution: Provided, That, in the sound discretion of the DOE it may 
declare an LPG cylinder to be imminently injurious, unsafe or dangerous, and order its 
immediate recall, seizure and impoundment, in which case the cylinder owner shall be 
afforded a hearing, within forty-eight (48) hours from issuance of such order, for the purpose 
of determining the propriety of the recall and seizure of the cylinders: Provided, further, 
That such a declaration shall be limited to instances when the cylinder is already filled and 
already sealed inside a refilling plant; dealer’s showroom; retail outlets; and/or cylinder 
transporter. 
For cases initiated motu propio by the DOE, it shall make a final determination of 
whether an LPG cylinder is injurious, unsafe or dangerous within thirty (30) days from 
termination of administrative proceedings: Provided, hrther, That in the absence of such 
determination upon expiration of the period therefor, the DOE shall thereafter release 
custody of the LPG cylinders to the industry participant in custody thereof prior to the oraer 
for recall, impoundment or prohibition from public sale or distribution. 
SEC. 20. Procedure for Petition for Declaration of LPG Cylinder us Injurious, Unsafe 
or Dangerous. - Any interested person may, upon payment of the appropriate filing fee 
prescribed by the DOE, petition the DOE for an order declaring an LPG cylinder injurious, 
dangerous or unsafe. In case the DOE, acting on such petition or on its own initiative and 
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upon due notice and hearing, determines an LPG cylinder to be injurious, dangerous or 
unsafe, it shall so notify the cylinder owner of such finding and order the recall, prohibition 
or seizure of the LPG cylinder. 
SEC. 2 1. Recall, Seizure, Impoundment and Prohibition ofDefective LPG Cylinders. - 
The order for recall, seizure, impoundment or prohibition issued by the DOE shall contain a 
prohibition against the refilling, sale or distribution of the recalled or banned cylinder, 
The cylinder owner against whom the order for recall, prohibition or seizure is issued 
shall be required to subject the recalled, banned or seized LPG cylinder to repair or re- 
qualification processes to render the same compliant with appropriate PNS, or, where repair 
or requalification is not possible or practicable, to present proof of scrappage thereof. 
The cylinder owner against whom the order for recall, seizure or prohibition is issued 
may petition for the revocation of the order. The DOE shall revoke the order for recall, 
prohibition or seizure upon a finding that the subject LPG cylinder has been repaired or 
otherwise made compliant with the required PNS, or has been replaced with a like or 
equivalent cylinder which conforms with the appropriate PNS. 
The cylinder owner shall not charge a consumer who avails of the remedy as provided 
above of any expenses or costs that may be incurred in the course of repair and re- 
qualification. 
SEC. 22. Disposition of Recalled, Banned or Seized Qdinders. - The DOE shall 
formulate rules for the disposition of recalled, banned or seized cylinders: Provided, That it 
shall adopt and enforce the rules for disposition of recalled, banned or seized cylinders 
established by the DTI. 
SEC. 23. Weighing Devices. - 
(a) Calibrated and Sealed Weighing Devices Required in Premises. - All refiners, 
importers, refillers, haulers, dealers, and retail outlets shall maintain, at all times, in all their 
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establishments or outlets and within the sales areas accessible to the public, suitable 
weighing devices duly calibrated annually and sealed by the City or Municipal Treasurer, the 
DOST, or any other government agency authorized therefor, and which shall accurately 
measure LPG cylinders up to one-tenth (0.1) of one kilogram. 
(b) Checking of LPG Cylinder Content by Dealers, Retail Outlets and Haulers. - All 
dealers, retail outlets and haulers that sell directly to consumers, shall weigh the LPG 
cylinders prior to being placed in the sales areas and also in the presence of the customers 
prior to sale, to afford the latter an opportunity to verify the correctness of the weight of the 
cylinders and the LPG contents thereof. 
SEC. 24. cylhder Sealing. - All LPG cylinders shall be provided with seals after 
filling, which conform to the specifications of the DOE: Provided, That the DOE, after 
consultation with the concerned brand owners, shall establish such specifications: Provided, 
further, That the cylinder owner and its authorized refiller shall be jointly responsible For 
ensuring that LPG cylinders are properly sealed before the cylinders leave the filling or 
refilling plants: Provided, finally, That LPG cylinders with tampered or broken seals shall not 
be sold or distributed. 
Cylinder seal manufacturers shall not sell seals of an LPG brand owner to any other 
brand owner, unless allowed by both the brand owner itself and the DOE. Seals are to be 
registered with the DOE. 
SEC. 25. .Zabeh~g 
RequirementsforLPG Cylinders. - LPG cylinders shall comply with 
labeling requirements of the PNS, with the labeling requirement provided under this - 
Section and as may be further prescribed by the DTI. 
(a) For LPG Cvlinder Collar. - All LPG cylinders, whether manufactured locally 
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or imported, shall have the following embossed or stamped on the cylinder collar: 
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5) Date of testing or re-qualification; 
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6) Thickness of plate; 
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7) Cylinder water capacity; 
1) The manufacturer’s registered trade name or brand name, trademark and business 
2) For imported cylinders, the name and address of the importer in the Philippines; 
3) Philippine Standard or Import Commodity Clearance certification marks, as 
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8) Tare weight; 
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9) Design and test pressure; and 
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10) Serial number. 
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The above requirements shall form an integral part of the cylinder collar, without 
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danger of being erased or detached under ordinary handling of the cylinder. 
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(b) For LPG Cvlinder Bodx. - All LPG cylinders, whether manufactured locally or 
imported, shall bear the following: 
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3) Tare weight; and 
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4) Net weight. 
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1) The registered brand name, trade name or trademark of the LPG product; 
2) A color which distinguishes the brand owner of the LPG it contains; 
The brand name, trade name or trademark of the LPG product shall be embossed and 
shall form an integral part of the body of the cylinder, without danger of being erased or 
detached under ordinary handling of the cylinder. 
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SEC. 26. Labeling of Delivery Vehicles. - All trucks and other vehicles used for 
hauling and delivering LPG cylinders shall display on their delivery trucks or vehicles a 
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services or sales. The absence of a signage or label on the delivery vehicle as required under 
this Section shall give rise to a presumption that the hauler is not duly authorized to 
transport LPG. Trucks without the appropriate signage or label can be seized or impounded. 
SEC. 27. Direct Sales 6y Haulers. - Subject to guidelines and requirements as may be 
promulgated by the DOE, haulers who engage in direct selling of LPG to consumers shall be 
treated as dealers for purposes of this Act and shall observe the standards and requirements 
for dealers under this Act. 
ARTICLE IV 
QUALITY STANDARDS 
SEC. 28. Promulgation of Quality Standards. - In order to reduce safety risks and 
operational hazards, and promote the use of environmentally safe and worker-benign 
technologies and processes, industry participants are hereby required to comply with the 
quality standards established by the DOE for the LPG industry consistent with the PNS 
formulated by the DTI. The quality standards shall be provided for, but not be limited to, the 
following: 
(a) Primary Storage Facilities 
(b) Cylinder-Filling Plants and Facilities 
(c) Bulk-Loading, Unloading and Transportation of LPG 
(d) Dealers and Retail Outlets 
(e) Service Stations 
The DOE shall formulate the specific guidelines for mandatory compliance with the 
established quality standards and enforce the appropriate sanctions for violations thereof: 
Provided, That the DOE shall consult the LPG industry participants in the formulation of 
said standards. 
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Provided, That nothing in this article will allow licensees for refilling plants, dealers, 
and retailers to sell ancillary equipment not recommended by the cylinder brand owner: 
Provided, firther, That the DOE, in formulating the quality standards in this act, when 
applicable, shall adopt the Philippine LPG Association safety code and the applicable 
international safety standards for the LPG industry, including, but not limited to, the 
National Fire Protection Association (NFPA) 58, otherwise known as the liquefied petroleum 
gas code for LPG. 
SEC. 29. Usage Requirements for Customers and End-users. - The DOE and the DTI 
shall jointly undertake educational and information dissemination activities to enhance 
customer awareness among LPG consumers and end-users. In addition to such educational 
programs, the DOE andor the DTI, after consultation with the LPG industry participants, 
may prescribe rules and regulations in relation to the following: 
(a) For industrial or large end-users, installation of signs at storage facilities; 
(b) Use of only branded, legally-filled and certified LPG cylinders; and 
(c) Installation of LPG appliances and devices approved by the DTI: ProviZed, That 
such appliances and devices shall be installed only by qualified servicemen as provided in 
this Act. 
SEC. 30. Bond Discount and Bond Exemption for Satisfactory Performance. - Any 
industry participant whose performance bond, as required under Article I11 of this Act, has 
not been charged with any fine or fee arising from any violation of this Act for an 
uninterrupted period of two (2) consecutive years, equivalent to fifty percent (50%) of the 
required amount for each year as prescribed by the DOE or the DTI, as the case may be: 
Provided, That such discount shall not be accumulated or compounded: Provided, further, 
That an industry participant who continues to have no record of any fine or fee arising from 
ANY violation of this Act for the next succeeding five ( 5 ) years shall be thereafter exempt 
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regulations, or guidelines prescribed by the DOE or the DTI, as the case may be, or any of its 
divisions, shall immediately forfeit the bond discount or bond exemption provided herein 
and such industry participant shall post and maintain the performance bond in such amount 
as may be required by the DOE. 
ARTICLE V 
PROHIBITED ACTS 
SEC. 31, Engaging in Business Without Standards Compliance Certificate. - Any 
industry participant who engages in business without securing a Standards Compliance 
Certificate from the DOE or the DTI as required under Article 111 of this Act shall be 
penalized with a fine of Five Thousand Pesos (Php5,OOO.OO) for an individual and Ten 
Thousand Pesos (Php10,OOO.OO) for a corporation, for each day of operation without a 
Standards Compliance Certificate: Provided, That the maximum fine to be imposed shall be 
Five Million Pesos (Php5,000,000.00) for an individual and Ten Million Pesos 
(Php10,000,000.00) for a corporation. 
SEC. 32. Engaging in Business Without Accreditation. - Any person who engages in 
the business of manufacturing cylinder seals or of re-qualifying, repairing or scrapping LPG 
cylinders without first securing a certificate of accreditation from the DTI as provided under 
this Act, shall be penalized with a fine of Three Thousand Pesos (Php3,OOO.OO) for ‘an 
individual and Five Thousand Pesos (Php5,OOO.OO) for a corporation, for each day of 
operation without a certificate of accreditation: Provided, That the maximum fine to be 
imposed shall be Five Million Pesos (Php5,000,000.00) for an individual and Ten Million 
Pesos (Php10,000,000.00) for a corporation. 
SEC. 33. Failure to Maintain or Replenish Performance Bond. - A cylinder 
manufacturer, cylinder, importer, LPG refiner, LPG importer, bulk supplier, refiller, bulk 
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loader, hauler, piped gas provider, repairer, re-qualifier, or cylinder seal manufacturer who 
fails to maintain or replenish the performance bond from a reputable insurance company 
duly licensed by the insurance commission required to be posted under the provisions of 
Article 111 of this Act, shall be penalized with a fine of Five Thousand Pesos (Php5,OOO.OO) 
for an individual and Ten Thousand Pesos (Php10,000.00) for a corporation, for each day of 
operation that the performance bond is not replenished: Provided, That the maximum fine to 
be imposed shall be Five Million Pesos (Php5,000,000.00) for an individual and Ten Million 
Pesos (Php10,000,000.00) for a corporation. 
SEC. 34. Obstruction of Inspection. - Any industry participant who refuses, prevents 
or obstructs the inspection of its premises and records as provided under Article 111 of this 
Act shall be penalized with a fine of Three Hundred Thousand Pesos (Php300,000.00) for an 
individual and Five Hundred Thousand Pesos (Php500,000.00) for a corporation, for each 
instance of violation. 
SEC. 35. Failure to Post Standards Compliance Certificate. - An industry participant 
who fails or refuses to post its Standards Compliance Certificate as required under Article I11 
of this Act and as required by the DOE, shall be penalized with a fine not exceeding Five 
Thousand Pesos (Php5,000.00) for each instance of violation. 
SEC. 36. Failure to Submit Reportorial Requirements. - An industry participant who 
fails to submit periodic reports as may be required by the DOE, within a reasonable period 
and in the manner prescribed by the DOE, shall be penalized with a fine not exceeding Five 
Thousand Pesos (Php5,OOO.OO) for each instance of violation. 
SEC. 37. Illegal Storage. - A refiner, importer, refiller, hauler, dealer, retail outlet or 
bulk consumer who stores LPG in bulk without obtaining the Standards Compliance 
Certificate required under Article 111 of this Act shall, upon conviction, be penalized with a 
fine of not less than Twenty Thousand Pesos (Php20,OOO.OO) but not more than One 
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Hundred Thousand Pesos (Php100,000.00), 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 the 
second and subsequent violations shall be penalized with both fine and imprisonment as 
provided herein. 
SEC. 38. Failure to CompIy with Product Standards. - An 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: 
(a) Non-compliance with DOE mandatory requirements on safety designs for 
refilling plants, equipment, depots, pipeline systems and similar facilities shall be penalized 
with a fine of not less than Fifty Thousand Pesos (Php50,000.00) but not more than One 
Million Pesos (Php1,000,000.00) 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 nothing in this 
paragraph shall preclude the court from ordering the closure of the facility until such time 
that the mandatory requirements have been met. 
(b) Failure to secure the required PNS Certificate for LPG cylinders shall be penalized 
with a fine of Five Thousand Pesos (Php5,OOO.OO) for an individual or Ten Thousand Pesos 
(PliplO,OOO.OO) for a corporation, for each non-compliant cylinder used and distributed to 
consumers, 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 the maximum fine to be imposed shall be 
Five Hundred Thousand Pesos (Php500,000.00) for an individual and One Million Pesos 
(Php1,000,000.00) for a corporation: 
Provided, firrher, That the second and subsequent violations shall be penalized with 
both fine and imprisonment as provided herein: Provided, finnaIIX That this section shall not 
apply unless the cylinder is in the possession of an illegal refiller or trader. 
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SEC. 39. Adulteration. - A refiner, importer, refiller, piped gas provider, dealer or 
retail outlet who mixes LPG with another finished or unfinished petroleum product or stock 
or with any non-petroleum substance or material that will result in product quality change 
or in the failure of the LPG to meet the required product specifications of the DOE, shall, 
upon conviction, be penalized with a fine of Ten Thousand Pesos (Php10,000.00) for an 
individual and Twenty Thousand Pesos (Php20,OOO.OO) for a corporation, for each cylinder 
containing adulterated LPG, 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 the second and 
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 (Php1,000,000.00) for a 
corporation. 
SEC. 40. UnderfZling, - When the net quantity of LPG contained in cylinders sold, 
transferred, delivered or filled by refillers is less than the cylinder content required by the 
government at the filling plant, the refiller shall, upon conviction, be penalized with a fine of 
Five Thousand Pesos (Php5,OOO.OO) for an individual and Ten Thousand Pesos 
(Php10,000.00) for a corporation for each underfilled 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: 
Providecl, That second and 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 
(Php1,000,000.00) for a corporation. When the net quantity of LPG for sale in cylinders 
sold, transferred, delivered or filled by dealers or retail outlets is less than three tenths of one 
kilogram (0.30 Kg) or the government-required cylinder content quantity, the dealer or retail 
outlet shall be penalized with the same fines mentioned earlier in this paragraph. 
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A broken, tampered, absent or removed seal shall give rise to a presumption that the 
cylinder is underfilled. A 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. 
SEC. 41. Illegal Refilling. - The following shall constitute illegal refilling of LPG 
cylinders under this Act: 
(a) Refilling of LPG cylinders by a person or entity other than the rightful owner 
thereof, unless specific permission is granted by the owner for such refilling as evidenced by 
a written contract or similar instrument; 
(b) Refilling of cylinder with LPG of a brand, trademark, trade name, or registered 
business name other than that of the LPG brand owner indicated on the cylinder tank, 
otherwise called “pirate filling” or “cross- filling”; 
(c) Refilling of LPG cylinder without embossed markings or other indication of the 
brand or trade name thereof, or bearing defaced, tampered or illegible markings contrary to 
the mandatory labeling and stamping requirements under this Act; 
(d) 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 LPG Board; 
(e) Filling directly from LPG tank trucks without the use of approved filling 
machines; 
(f) Refilling LPG from one cylinder to another without using the prescribed 
equipment; 
(g) Backyard refilling of cylinders other than in properly designed LPG refilling 
plants; 
(11) Filling cylinders with products or substances other than LPG in an effort to 
achieve the correct net weight; 
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(i) Any other refilling of LPG cylinders in violation of the mandatory requirements 
or prescribed standards under this act; and 
(j) Unauthorized loading of bulk LPG tanks in industrial accounts. 
It shall also be prohibited for any marketer, dealer or retail outlet to knowingly sell 
illegally refilled cylinders. 
An industry participant found guilty of illegal refilling under this Section shall, upon 
conviction, be penalized with a fine of Ten Thousand Pesos (Php10,000..00) for an individual 
and Twenty Thousand Pesos (Php20,OOO.OO) for a corporation, for each illegally-filled 
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 second and subsequent violations shall be 
penalized with both fine and imprisonment: Provided, firther, That the maximum fine to be 
imposed shall be Five Million Pesos (Php5,000,000.00) for an individual and Ten Million 
Pesos (Php10,000,000.00) for a corporation. 
SEC. 42. Unauthorized Trading of LPG Cylinders. - Any industry participant who, 
without the consent of the cylinder owner, stores empty LPG cylinders in quantities in 
excess of those allowed by the DOE, through cylinder swapping and other similar industry 
practices, and exchanges, barters, sells, distributes or otherwise transfers ownership and/or 
possession thereof to a person or entity other than the cylinder owner and without the 
authority of the cylinder owner shall, upon conviction, be penalized with a fine of Three 
Thousand Pesos (Php3,OOO.OO) for an individual and Six Thousand Pesos (Php6,000.00) for 
each illegally-stored or sold empty 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 second 
and subsequent violations shall be penalized with both fine and imprisonment. Provided, 
further, That the maximum fine to be imposed shall be Three Hundred Thousand Pesos 
,
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(Php300,000.00) for an individual and Six Hundred Thousand Pesos (Php600,000.00) for a 
corporation. 
Provided, however, That if the legitimate cylinder owner refuses to buy back the 
cylinders that were acquired by other LPG industry participants, the party in possession of 
the acquired cylinders shall be allowed to dispose of said cylinders, subject to the guidelines 
promulgated by the DOE. 
SEC. 43. Tampering of LPG Cyrinders and Similar Acts. - Any person who tampers, 
alters, or modifies LPG cylinders through any means such as, but not limited to, changing the 
cylinder valve, repainting, and re-labeling, by any person other than the cylinder owner 
shall, upon conviction, be penalized with a fine of Five Thousand Pesos (Php5,000.00) for an 
individual and Ten Thousand Pesos (Php10,OOO.OO) for a corporation, 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 second and subsequent 
violations shall be penalized with both fine and imprisonment: Provided, further, That the 
maximum fine to be imposed shall be Five Million Pesos (Php5,000,000.00) for an individual 
and Ten Million Pesos (Php10,000,000.00) for a corporation. 
SEC. 44. Illegal Possession of LPG Cylinder Seal. - Any person found in possession of 
LPG cylinder seals, including the seals already used in the cylinders without authority from 
the cylinder owner or its authorized refiller shall, upon conviction, be penalized with a fine 
of Five Thousand Pesos (Php5,OOO.OO) for an individual and Ten Thousand Pesos 
(Php10,000.00) for a corporation, for each LPG seal found in its or his possession, or 
iinprisonment of at least six (6) months but not more than two (2) years, or both, at the 
discretion of the court: Provided, That second and subsequent violations shall be penalized 
with both fine and imprisonment: Provided, further, That the maximum fine to be imposed 
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shall be Five Million Pesos (Php§,OOO,OOO.OO) for an individual and Ten Million Pesos 
(Php10,000,000.00) for a corporation. 
SEC. 45. Failure to Comply with Weighing Device Requirements. - A refiner, 
importer, refiller, dealer or retail outlet who fails to comply with the requirements 
pertaining to weighing devices under Article 111, shall be penalized with a fine of Ten 
Thousand Pesos (Php10,OOO.OO) for an individual or Twenty Thousand Pesos (Php20,000.00) 
for a corporation. 
SEC. 46. Overloading. -A hauler who loads and transports, or permits the loading and 
transportation of LPG cylinders in quantities greater than the rated capacity of the vehicle or 
in such a manner that endangers the life and safety of its passengers or the public, shall be 
penalized with a fine of Twenty Thousand Pesos (Php20,OOO.OO) for an individual and Forty 
Thousand Pesos (Php40,OOO.OO) for a corporation: Provided, That the penalties provided 
herein shall be without prejudice to its liability under other laws for any damage or injury to 
person or property. 
SEC. 47. Sale or Distribution to Non-complying Persons or Entities. - A cylinder 
manufacturer, refiner, importer, refiller, dealer or retail outlet who knowingly sells or 
distributes LPG or LPG cylinders or LPG Seals to persons or entities committing any of the 
prohibited acts provided in this Act and in such other issuances or orders to be issued by the 
DOE, shall upon conviction, be penalized for each sale or distribution with a fine of not less 
than One Hundred Thousand Pesos (Php100,OOO.OO) but not more than Five Hundred 
Thousand Pesos (Php500,OOO.OO) or imprisonment of at least six (6) months but not more 
than two (2) years, or both at the discretion of the court. 
SEC. 48, Pilferage of LPG. - Any person who pilfers LPG, upon conviction, shall be 
penalized with a fine of One Million Pesos (Php1,000,000.00) for an individual and TWO 
Million Pesos (Php2,000,000.00) for a corporation or imprisonment of at least six (6) months 
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but not more than two (2) years, or both, at the discretion of the court: Provided, That 
second and subsequent violations shall be penalized with both fine and imprisonment: 
Provided, Arther, That the maximum fine to be imposed shall be Five Million Pesos 
(Php5,000,000.00) for an individual and Ten Million Pesos (Php10,000,000.00) for a 
corporation. 
SEC. 49. Suspension or Revocation of Business License or Pernit. - The penalties 
provided herein shall be without prejudice to the suspension or revocation of the business 
license of such person by the appropriate local government unit, within, the same year for 
which such business license was granted. 
SEC. 50. Imposition OfAdministrative Pemlv. - The DOE may, in addition to or in 
lieu of the institution of a criminal action in a court of law, impose an administrative penalty 
within the range prescribed under the provisions of this Article, which may be charged 
against the performance bond of the industry participant. 
SEC. 51. ‘Strike Three”Penalty. - Any person convicted with finality of violating the 
provisions of this Act for three (3) consecutive instances shall be perpetually disqualified 
from engaging in any activity in the LPG industry. 
SEC. 52. Publication ofpersons Convicted of Violations of this Act. - The DOE shall, 
on a quarterly basis, publish in a newspaper of general circulation, the names of industry 
players convicted with finality of violations of this Act. 
SEC. 53. Violations by Juridical Entities. - If the violation is committed by a 
corporation, partnership, association or other juridical entity, the penalty of imprisonment 
shall be imposed on the responsible directors or officers thereof. If the offender is an alien, 
he shall be deported immediately, without further proceedings, after service of sentence. 
SEC. 54. Prosecution Under Separate Laws. - Prosecution under this Act shall be 
without prejudice to any liability for violation of any provision of the Revised Penal Code, 
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Republic Act No. 8293, otherwise known as the “Intellectual Property Code of the 
Philippines,” and other applicable laws. 
ARTICLE VI 
EDUCATION AND RESEARCH 
SEC. 55. Public Information Campaign. - The DOE, in coordination with the 
Philippine Information Agency, the DILG and such other appropriate government agencies, 
shall jointly develop and implement an effective strategy for the dissemination of 
information to the public about LPG, cylinder quality and safety. 
SEC. 56. Development Research. - The DOE, in coordination with the DOST and the 
DTI, shall conduct study and research for the purpose of developing more efficient methods 
of providing safe, clean and hazard-free LPG to consumers. 
ARTICLE VI1 
FINAL PROVISIONS 
SEC. 57. ImpIementing Rules and Regulations. - In cons1  ati ion with DTI an’ the 
LPG industry participants, the DOE shall formulate and issue the necessary implementing 
rules and regulations within one hundred eighty (180) days from the effectivity of this Act. 
SEC. 58. Transition Phase. - In order to provide a smooth implementation of the 
monitoring and supervisouy mechanisms provided herein, the industry participants shall be 
given a grace period of six (6) months from the effectivity of this Act, within which to 
comply with the provisions herein: Provided, That during the transition period, the industry 
participants shall continue to be bound and made liable under the provisions of existing laws, 
rules and regulations not otherwise repealed by this Act. Industry participants already legally 
engaged in business upon the effectivity of this Act and who are required to secure a 
Standards Compliance Certificate prior to the renewal of their business licenses as provided 
in Section 13 of this Act, shall not be required to obtain a Standards Compliance Certificate 
for the duration of the grace period. 
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SEC. 59. Separability Clause. - Any portion or provisions of this Act that may be 
declared unconstitutional or invalid shall not have the effect of nullifying other portions and 
provisions hereof as long as such remaining portion or provision can still subsist and be given 
effect in their entirety. 
SEC. 60. Repealing Clause. - All other laws, decrees, executive orders, proclamations 
and administrative regulations, or parts thereof inconsistent herewith are hereby repealed or 
modified accordingly. 
SEC. 61. Effectivity Clause. - This Act shall take effect after fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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