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

TEENTH CONGRESS
First Regular Sessi

Howse BILLNO. 164

1. Tanchay

Introduced by Rep. Rodante D. Marcoleta and Rep. Carolin

E

XPLANATORY NOTE

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

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

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

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

RODA) PTA



Republic of the
HOUSE OF REPRI
Quezon City, Metro Manila

NINETEENTH CONGRESS,
First Regular Session

HOUSE BILL NO. 184

Introduced by Rep. Rodante D. Marcoleta and Rep. Caroline L. Tanchay

AN ACT
TO PROTECT THE FILIPNO CONSUMERS FROM ARBITRARY

INCREASES IN THE PRICES OF LPG BEING CHARG BY THE
‘SS OF THE LPG INDUSTRY, AMENDING FOR THE PURPOSE
IONS 19 AND 14 OF R.A, 8479, OTHERWISE KNOWN

DOWNSTREAM OIL INDUSTRY DEREGULATION LAW OF 1998

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

CTION I.Section 19 of Republic Act No. 8479 is hereby amended by
adding another paragraph to read as follows

Providing further, that effective immediately, the price of LPG
has to be guided by an Automatic Pricing Mechanism (APM), Such
APM shall be determined by the Energy Regulatory Commission

(ERC), atier prior notice and hearing. within six (6) months from the
affectivity of this bill

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

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

“Any report from any person of an unreasonable rise in the prices
of LPG shall be immediately acted upon. For this purpose. the ERC is
hereby mandated to determine within thirty (30) days the merits of the


report and initiate the necessary actions warranted under the
circumstances: Provided, that nothing herein shall prevent the ERC from
investigating and/or filing the necessary complaint moto propio.”

SECTION 3. /mplementing Rules And Regulations ~ The ERC, in coordination
with DOE and other concerned government agencies, shall formulate and issue the
necessary implementing rules and regulations within sixty (60) days after the
effectivity of this Act.

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

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

Approved,