Republic of the Philippines _
HOUSE OF REPRESENTATIVES RECEIVED
Quezon City . 01 AUG 2016
SEVENTEENTH CONGRESS

First Regular Session

2226

HOUSE BILL NO.

Introduced by HONORABLE ZAJID G. MANGUDADATU

EXPLANATORY NOTE

Prices of fuels are extremely high in the Philippines nowadays. Businessmen and
professionals, who rely on the fast movement of products and goods, face a hindrance in
the continuously rising fuel prices. Ordinary Filipinos who commute are also affected
because of the escalating fares in public utility vehicles.

This problem of high fuel prices is doubled by the devious acts of filling stations
that have fuel pumps, which are not properly calibrated. Retail fuel consumers do not get
the proper value of the money they paid for fuel if the pumps serving them are not
properly calibrated. A fuel pump that is not properly calibrated will always dispense a
volume of fuel nor proportionate to what a consumer paid for. It is the duty of the state
that this will not happen. The Philippines should have a dynamic trade environment that
is just and fair to both business and consumers.

This representation believes that a strict law that will ensure that all filling
stations in the country will have fuel pumps which are calibrated regularly is needed.
Regular fuel pump calibration will ensure that the consumers will get what they paid for.
This could be done by setting high standards and severe penalties, if the set standards are
not complied with. The Local Government Units, in coordination with the Department of
Energy, should be empowered to closely monitor the filling stations in their respective
jurisdictions.

The proposed bill provides for penalties that will make sure that filling station
operators and owners will no longer resort to defrauding the consuming public with
unfair machinations. The proposed law also contains provisions penalizing government
officials, who connive with owners or operators of filling stations, in allowing the
operation of fuel pumps that are not properly calibrated.

In view of the foregoing, immediate approval of this bill iskighly recommended.

2" District, jindanao
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\TATIVES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNo.__ 2226

Introduced by HONORABLE ZAJID G. MANGUDADATU

AN ACT PRESCRIBING THE REGULAR CALIBRATION
OF FUEL PUMPS IN ALL FILLING STATIONS AND IMPOSING PENALTIES
FOR THE VIOLATION THEREOF AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. This act shall be known as the “Fuel Pumps
Calibration Act.”

SECTION 2. Declaration of Policy. The State shall ensure that consumers will
be rightfully protected from fraudulent schemes of unscrupulous businessmen who resort
to unfair practices just to earn profit. The State shall encourage a dynamic trade
environment that is just and fair to both consumers and businessmen.

SECTION 3. Definition of Terms. The following terms, as used in this act, shall
mean:

a) “Filling Stations” refers to a service station that sells fuel and other fuel
products. It shall also refer to gas stations, petrol stations, LPG stations and other similar
service stations.

b.) “Fuel Pump” refers to a machine at a filling station that is used to pump
or dispense gasoline, diesel, CNG, CGH2, HCNG, LPG, LH2, ethanol fuel, biofuels,
biodiesel, kerosene, or other types of fuels in vehicles.

c.) “Calibration” refers to the act of checking or adjusting, by comparison
with a standard, the accuracy of fuel pumps in filling stations.

4.) “DOE” refers to the Department of Energy.

¢.)  “DILG” refers to the Department of Interior and Local Government.

f.) “OP” refers to the Office of the President.

£.) “LGU? refers to the Local Government Unit.

SECTION 4. Regular Calibration. All fuel pumps in all filling stations in the
Philippines shall be inspected and calibrated twice a month. The calibration shall be
conducted and monitored by the respective LGUs where the filling station is located. It

shall be unlawful for any owner or operator to run filling stations with an inaccurate or
not properly calibrated fuel pump.


SECTION 5. Inspection and Calibration Tag. After a fuel pump is inspected
and calibrated, the inspector shall place a non-removable tag or seal on the calibration
knob or points. When the next inspection or calibration date comes, the tag shall be
removed and replaced after the inspection or calibration has been made. The inspection or
calibration tag shall not be removed or tampered with by any person. Only the officer of
the LGU tasked with the inspection or calibration of the fuel pumps shall have the
authority to remove the tag.

SECTION 6. DOE and DILG Coordination. The DOE shall coordinate with
the DILG in training officers of each LGU for the inspection and calibration of fuel
pumps in a filling stations in the Philippines.

SECTION 7. Penalties.

‘A. Without prejudice to criminal prosecution for violation of the Revised Penal
Code, whenever applicable, any operator or owner, operating filling stations with an
inaccurate or not properly calibrated pumps, shall be penalized as follows:

1.) First Offense — Fine of One Hundred Fifty Thousand Pesos (P 150,000.00).

2.) Second Offense ~ Fine of Five Hundred Thousand Pesos (P500,000.00) and
Suspension of Business Permit to operate for three (3) months;

3.) Third Offense — Fine of One Million Pesos (P1M), Closure of Business and
Imprisonment of One (1) year.

B. Without prejudice to criminal prosecution for violation of the Revised Penal
Code, whenever applicable, any person, who removes or tampers an inspection or
calibration tag without any authority shall be penalized with imprisonment of one (1)
year and a fine of Five Hundred Thousand Pesos (P500,000.00).

C. Without prejudice to criminal prosecution for violation of the Revised Penal
Code, whenever applicable, any officer of an LGU, the DOE, the DILG, who connives
with any person in allowing a filling station to operate with an inaccurate or not properly
calibrated fuel pump, shall be penalized with imprisonment of One (1) year, perpetual
disqualification from holding a public office and a fine of Five Hundred Thousand Pesos
(P500,000.00)..

Section 8. Jurisdiction. All cases arising from or related to any violation of this
Act shall be brought before the proper Municipal Trial Court or Circuit Court, which
shall dispense the case swiftly.

Section 9. Implementing Rules and Regulations. The Department of Energy,
Department of Interior and Local Government and the Office of the President shall issue
the necessary implementing rules and regulations within sixty (60) days after the
effectivity of this Act.

Section 10. Repealing Clause. If for any reason, any section or provision of this
Act is held unconstitutional or invalid, the other sections or provisions of this Act are
hereby repealed or modified accordingly.

Section 11. Separability Clause. If for any reason, any section or provision of
this Act is held unconstitutional or invalid, the other sections or provisions hereof shall
not be affected hereby.

Section 12. Effectivity Clause. This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,