EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
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SENATE
Senate Bill No. ^955
December
DATE
NDEX
GILLS
In substitution of Senate Bill No. 1188
Prepared by the Committee on Energy joint with the Committee on Trade, 
Commerce and Entrepreneurship with Senators Gatchaiian and Pacquiao as authors
thereof.
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 of Representatives of the Philippines 
in Congress assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be referred to as the "LPG Act."
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
State to protect the interests of consumers, ensure their general welfare, and to 
establish standards of conduct for business. Towards this end, the State shall:
(a) Institute reforms in the existing standards of conduct and codes of practice for 
the LPG industry;


(b) Ensure the health, safety, security, environmental, and quality standards for 
the following:
(I) Importation, refining, refilling, transportation, distribution, and 
marketing of liquefied petroleum gas (LPG), and 
(ii) Importation, manufacture, re-qualification, repair, exchange, swapping, 
improvement, and scrappage of LPG pressure vesseis, whichever is 
applicable;
(c) Promote awareness regarding the health, safety, security, environmental, and 
quality standards for the proper use of LPG, LPG pressure vessels, and ancillary 
equipment through information dissemination and consumer education 
campaigns;
(d) Uphold the right of consumers to freely choose the LPG trademark or 
tradename they want to purchase and improve competition in the LPG industry 
for the benefit of consumers; and
(e) Be at the forefront of technological Innovation, in partnership with public and 
private stakeholders, by keeping abreast of and developing homegrown 
advancements and breakthroughs In the LPG industry.
SECTION 3. Scope and Application. - This Act shali apply to the following:
(a) Importation, refining, storing, exporting, refiiling, transportation, distribution, 
and marketing of LPG;
(b) Importation, manufacture, re-qualification, repair, exchange, swapping, 
improvement, and scrappage of LPG pressure vesseis, whichever is appiicable; 
and
(c) Safe operations of the entire LPG industry to inciude aii LPG faciiities and the 
residential, commercial. Industrial, and automotive use of LPG.


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documentary requirements, quality and safety standards, and the specific 
Philippine National Standards (PNS) prescribing the method of requalification 
of LPG pressure vessels, other applicable PNS, and other standards and codes 
as adopted by the DTI as PNS;
(b) Activity refers to:
(i) Importation, refining, storing, exporting, refilling, transportation,
distribution, and marketing of LPG for residential, commercial, industrial, 
or automotive use, and
(ii) Importation, manufacturing, distribution, selling, re-qualifying, repairing,
and scrappage of LPG pressure vessels, whichever is applicable, 
authorized LPG seals, and other ancillary equipment;
(c) Alteration refers to any act of converting, transforming, or resizing of LPG 
cylinders from its original size or design including replacement or removal of 
existing registered trademark owner's markings, grinding, flattening, 
application of putty, replacement of collar, revalving, unauthorized repainting, 
replacement of foot-rings, or re-labeling;
(d) Ancillary equipment refers to parts, devices, and accessories necessary for the 
safe and proper operation of an LPG pressure vessel such as seals, valves, 
hoses, and regulators;
(e) Authorized or appropriate LPG seal refers to the protective cover placed on the 
gas outlet of an LPG cylinder of the type that necessitates breaking or 
destroying before LPG can flow out of the cylinder. It shall have a distinctive 
design, symbol, emblem, or mark, identifying the owner of the LPG cylinder;
(0 Auto-LPGreters to LPG intended to fuel, propel, or otherwise provide propulsion 
to motor vehicles;
(g) Auto-LPG container refers to any pressure vessel filled with auto-LPG 
permanently attached to and is an inherent and integral part of a motor vehicle;
(h) Auto-LPG dispensing station refers to a facility or business establishment, which 
sells auto-LPG directly to auto-LPG vehicle users. It may be a standalone 
establishment, or located within or operated within a liquid petroleum products 
retail outlet;


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(i) Bulk consumer refers to a duly-authorized natural or juridical person who
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purchases LPG at large quantities for its own use, requires bulk storage of LPG,
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and does not, in any way, engage in the distribution or retail of LPG to the end
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consumer;
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(j) Bulk distributor refers to any duly-authorized natural or juridical person who
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purchases LPG In bulk in tankers, barges, or tank truck trailers from bulk
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suppliers, and who supplies the same to refillers or bulk consumers;
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(k) Bulk storage tank refers to a refillable pressure vessel, with water capacity of
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more than one hundred fifty (150) liters, designed for the storage of LPG;
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(I) Bulk supplier refe rs to a duly-authorized natural or juridical person who engages
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in the sale or distribution of LPG in large quantities and requires bulk storage
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of LPG;
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(m) 
Centralized LPG piping system refers to a means of distributing LPG through
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a closed system of pipelines within a building from locally installed LPG pressure
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vessels;
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(n) Certificate of accreditation refers to the written document issued by the DTI
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stating that a re-qualifier of LPG pressure vessels has complied with all the
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requirements and standards necessary to operate as such;
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(o) Cross-filling refers to the refilling of LPG cylinders by a natural or juridical
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person duly authorized by the trademark owner as evidenced by a written
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contract or similar instrument;
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(p) Cylinder owner refers to a natural or juridical person whose trademark or
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tradename is embossed, engraved, or otherwise permanently indicated on the
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LPG cylinder in the manner prescribed by the applicable PNS;
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(q) Cylinder exchange refers to the purchase by the end consumer of an LPG filled
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cylinder using an empty LPG cylinder of a different trademark or tradename;
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(r) Cylinder swapping refers to the giving and taking of LPG cylinders among
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industry players bearing other trademarks or tradenames;
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(s) Dealer refers to any duly-authorized natural or juridical person involved in the
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trading or sale of LPG cylinders to retail outlets or directly to end consumers;
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(t) Defective cylinder refers to an LPG cylinder that is uncertified, damaged, or
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dilapidated due to the existence of corrosion or pitting, dents, cuts, gouges.


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digs, bulges, leaks, and similar defects rendering such cylinder unsafe, 
injurious, or dangerous for distribution or use, and creating a substantial risk 
of injury to the general public;
(u) End consumer refers to any person, who purchases LPG for own consumption. 
For purposes of this Act, an end consumer shall not include a bulk consumer;
(v) Facility refers to LPG refining plants, import terminals, refilling plants, bulk 
depots, cylinder warehouses, and storage areas and their corresponding 
logistical requirements such as personnel and equipment;
(w) 
Generic cylinder refers to a cylinder which is already circulating in the 
market prior to the effectivity of this Act, bearing no trademark or tradename 
embossed, engraved, or otherwise permanently indicated thereon;
(x) Hauler refers to a duly-authorized natural or juridical person involved in the 
transportation, distribution, and delivery of LPG in cylinders and cartridges, and 
bulk LPG through the use of authorized motor vehicles;
(y) Importer refers to a duly-authorized natural or juridical person engaged in the 
importation of LPG, LPG pressure vessels, or ancillary equipment for processing, 
sale, or own use, whichever is applicable;
(z) Import commodity clearance (ICC) certificate refers to a document issued by 
the DTI-Bureau of Philippine Standards (BPS) attesting that the quality and 
safety of an imported product conforms to the PNS and other accepted codes 
and standards as adopted by DTI as PNS;
(aa) License to operate refers to a certification issued by the Department of 
Energy (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;
(bb) Z./7<jrefers 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;
(cc) LPG cartridge refers to a non-refillable receptacle having a water capacity 
not exceeding one thousand (1,000) milliliter (ml) for receptacles made of


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metal, and five hundred (500) ml for receptacles made of synthetic material or
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glass, containing under pressure a gas or mixture of gases. It shaii aiso refer
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to an LPG canister or LPG cassette;
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(dd) LPG cylinder refers to a transportable and refillable pressure vessel with up
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to one hundred fifty (150) liters water 
capacity, designed for the storage of
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LPG;
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(ee) LPG Cylinder Exchange and Swapping Program refers to a system that
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aiiows end consumers to exercise their freedom of choice in the purchase of
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LPG fiiied cylinders through cylinder exchange and cylinder swapping;
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(ff) LPG Cylinder Improvement Program refers to a system that aims to ensure
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the quality of all LPG cylinders in circulation with the goal of protecting the
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consumers, by which:
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(i) A fund is set aside by LPG industry participants for the repair of LPG
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cyiinders,
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(ii) LPG trademark owners, dealers, marketers, and retail outlets can avail
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of this fund whenever they send an LPG cyiinder for repair, and
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(iii) Generic cylinders and cyiinders without trademark owners aiready in
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circuiation in the market upon the effectivity of this Act, are removed
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within a specific period of time, whereby in the course of such period
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LPG trademark owners, deaiers, marketers, and retail outlets can receive
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generic cyiinders and cyiinders without trademark owners, without fear
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of penaity, and these generic cylinders and cyiinders without trademark
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owners shaii be re-quaiified and permanentiy marked with the trademark
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or tradename of the trademark owner last in possession of it;
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(gg) i-PG cylinder swapping center shaii refer to a storage facility in a specific
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locaiity which serves as the drop off point of empty LPG cyiinders by program
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participants in the LPG Exchange and Swapping Program for the purpose of
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cyiinder swapping;
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(hh) LPG Industry Development Plan refers to a comprehensive pian to ensure
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existing and projected LPG supply levels will meet demand including concrete
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steps to further grow the industry;


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(ii) LPG industry participants refers to natural or juridical persons engaged in the
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activities defined in Section 4(b) of this Act;
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(jj) LPG pressure vessel refers to an unfired and sealed containment for LPG that
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has internal pressure more than 1.03 barg, 
and designed, fabricated,
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manufactured, examined, and tested in accordance with prescribed standards
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and codes, such as LPG bulk storage tanks, LPG cylinder, LPG cartridges, auto-
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LPG containers, and others;
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(kk) Marketer xdiexs to a duly-authorized natural or juridical person engaged in
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the sale of LPG under its own trademark or tradename, whether in bulk or in
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retail;
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(II) Permanent marking refers to the marking applied to cylinders by embossing,
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hard metal stamping, engraving, 
casting, or other similar methods 
as
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prescribed by the applicable PNS. This marking remains legibie during the
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lifespan of the cylinder.
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(mm) Pilferage refers to the theft of or unauthorized transfer of LPG in quantities
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from one pressure vessel to another such as cylinders, motor vehicles, and
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others;
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(nn) Philippine Standards (PS) license refers to the authority given by the DTI to
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a manufacturer or repairer attesting that the manufacturer or repairer has
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complied with ail the requirements and standards necessary to operate as such,
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and authorizing the use of the PS certification mark on its product;
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(oo) PNS refers to the standards promuigated by the DTI-BPS pertaining to
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product specifications, test methods, terminologies, procedures, or practices
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pursuant to Republic Act No. 4109, otherwise known as An Act to Convert the
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Division of Standards Under the Bureau of Commerce into a Bureau of
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Standards, to Provide for the Standardization and/or Inspection of Products and
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Imports of the Philippines and for Other Purposes, and other appiicabie laws,
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rules, and regulations;
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(pp) Qualified service person refers to an individual who has successfully
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completed an approved training course for LPG service persons by the DOE,
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DTI, and other relevant government agencies as specified in this Act, or an
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organization duly recognized and accredited by the government;


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(qq) /?e/7//e/'refers to a service provider authorized by the LPG trademark owner
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to refill LPG cylinders on the latter's behalf, or any trademark owner which refills
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LPG into its own LPG cylinders;
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(rr) Refillingplantxdiers to a facility with LPG bulk storage and refilling equipment,
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used for refilling LPG into cylinders;
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(ss) Refiner refers to a duly-authorized natural or juridical person who refines
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LPG through distillation, conversion, and treatment of crude oil and other
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naturally occurring petroleum hydrocarbons;
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(tt) Re-quaiification refers to the process by which an LPG pressure vessel is
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inspected, tested, and re-evaluated in accordance with the prescribed PNS and
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other accepted codes and standards adopted by DTI as PNS to determine its
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viability for continued use, distribution, repair, or scrappage, whichever may be
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applicable;
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(uu) Re-quaiifier refers to a natural or juridical person engaged in the business
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of re-qualification duly accredited by the DTI;
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(w) Repair refers to the removal and replacement of parts of LPG pressure
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vessels, or the performance of any other corrective and restorative measures
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in accordance with the prescribed method under the PNS and other accepted
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codes and standards as adopted by DTI as PNS, with the end goal of restoring
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the viability and fitness of LPG pressure vessels for public use;
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(ww) Repairer refers to a natural or juridical person engaged in the business of
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repair duly certified by the DTI;
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(XX) 
Retail outlet refers to a duly authorized natural or juridical person involved
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in the trade or sale of LPG in cylinders directly and exclusively to end consumers
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whose maximum floor stock is determined by DOE;
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(yy) Scrappage refers to the destruction of defective LPG cylinders declared by
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a re-qualifier or repairer to be unfit for use. The destruction may be done by
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cutting the cylinder at various parts or by flattening to render the cylinder
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unusable or unrecyclable;
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(zz) 
Substandard refers to any pressure vessel which does not conform with the
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applicable PNS and does not bear a PS or ICC safety and quality mark;


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(aaa) Tare weight refers to the net weight of an LPG cylinder excluding its 
contents as engraved in the collar and painted in the body or permanently 
marked In the body thereof. It shall be expressed in kilograms or grams in 
accordance with the applicable PNS;
(bbb) Trademark owner refers to a duly-authorized natural or juridical person 
owning a duly registered, valid, and existing trademark or trade name 
registered with the Intellectual Property Office of the Philippines pursuant to 
Republic Act No. 8293 otherwise known as Intellectual Property Code of the 
Philippines; and
(ccc) Uncertified pressure vessei refers to an LPG pressure vessel that did not 
undergo the certification process of DTI or not in accordance to the standard 
adopted as PNS by DTI.
CHAPTER II
ROLE OF GOVERNMENT AGENCIES
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SECTION 5. Lead Agency. - The DOE shall be the primary government agency
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responsible for the implementation and enforcement of this Act. The DOE shall
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regulate, supervise, and monitor the LPG industry and all LPG industry participants to
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ensure compliance with the health, safety, security, and environmental standards, the 
applicable PNS, and other accepted codes and standards as adopted by DTI as PNS.
SECTION 6. Powers and Functions of the Department of Energy. - In addition 
to its mandate under Republic Act No. 7638, otherwise known as the Department of 
Energy Act of 1992, and Republic Act No. 8479, otherwise known as the Downstream 
Oil Deregulation Act of 1998, the DOE shall have the following powers and functions:
(a) 
Prepare the LPG Industry Development Plan, in consultation with public and 
private stakeholders, which shall be integrated into the Philippine Energy 
Plan;
(b) 
Implement and ensure compliance with the quality and safety standards 
prescribed in the PNS and other accepted codes and standards as adopted 
by DTI as PNS for:


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(ii)
(i) 
Refining piants, refilling plants, depots, storage areas, transportation 
facilities, retail outlets, auto-LPG dispensing stations, and other 
related facilities or premises of LPG industry participants, and
(ii) 
LPG, LPG pressure vessels to include filled or unfilled cylinders in 
circulation which are for distribution and sale to dealers, retail outlets, 
and end consumers, and other ancillary equipment;
(c) Issue and enforce compliance with the following:
(i) Licenses to operate for qualified LPG industry participants. The DOE 
shall have the power to suspend or revoke these, after due notice and 
hearing, pursuant to Sections 24, and Chapter XI of this Act,
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 XI of this Act,
Guidelines for:
(1) Disposal of LPG and LPG pressure vessels together with the 
Department of Environment and Natural Resources (DENR),
(2) Authorized motor vehicles used in the transportation of LPG in bulk, 
LPG from one LPG industry participant to another, and filled and 
unfilled LPG cylinders and cartridges to other LPG industry 
participants and end consumers, and the registration thereof, 
together with the Land Transportation Office (LTO) and Bureau of 
Fire Protection (BFP), pursuant to Section 36 of this Act,
(3) Accreditation of drivers and attendants for authorized motor vehicles 
used in the transportation of LPG in bulk, LPG from one LPG industry 
participant to another, and filled and unfilled LPG cylinders and 
cartridges to other LPG industry participants and end consumers, 
together with the LTO, upon prior consultation with LPG industry 
participants and other government agencies concerned, and
(4) Installation of signage at storage facilities of bulk suppliers and bulk 
distributors;
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(d)
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(f)
(g)
(h)
(i)
Convene technical working groups and technical committees comprised of 
public and private stakeholders for the creation and review of policies, rules, 
regulations, and guidelines; and the development of standards, respectively; 
Approve and authorize LPG seals of trademark owners and marketers;
Direct LPG trademark owners, to periodically submit LPG pressure vessels 
for re-quallficatlon pursuant to Section 7 of this Act;
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, pursuant to 
Chapter XI of this Act; and
(II) 
Incidents of Injury or damage to person or property, caused by or 
attributable to the Improper refilling, storage, transport, distribution, 
handling, manufacturing, re-quallfying, repairing of LPG pressure 
vessels, whichever Is applicable, and Improper refining, dispensing, 
and use of LPG;
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) 
Non-compllant and substandard LPG, defective, unsafe. Injurious, 
dangerous, generic, underfilled. Illegally refilled, defective, or 
substandard LPG pressure vessels In circulation, ancillary equipment, 
and other appurtenances, or those that are found In violation of the 
provisions of this Act: Provided, That duly-requallfied generic cylinders 
already In the market at the time of the effectivlty of this Act shall 
only be confiscated, recalled, seized. Impounded, and prohibited after 
the lapse of the transition period of the LPG Cylinder Improvement 
. Program determined by DOE pursuant to Section 31 of this Act;
Exercise visitorlal powers to ensure the effective Implementation of this Act, 
which Includes the power to scrutinize the records of LPG Industry 
participants and to Inspect their premises, LPG seals, ancillary equipment.
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and filled and unfilled LPG pressure vessels, including those in transit, which
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are for distribution and sale to dealers, retail outlets, and end consumers:
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Provided, That trade secrets and proprietary information to be determined
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in this Act's implementing rules and regulations shall not be subject to DOE
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scrutiny;
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(j) Require LPG industry participants to submit written or electronic forms or
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reports as it may deem necessary and reasonable pursuant to Section 32 of
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this Act,
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(k) Create, maintain, and regularly update a central database of LPG industry
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participants and an inventory of existing and projected LPG supply levels
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pursuant to Section 33 of this Act;
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(I) Regularly publish in a newspaper of general circulation or the DOE website
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the list of LPG industry participants whose licenses to operate have been
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revoked;
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(m) Formulate and publish, together with the DTI, the guidelines, rules, and
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regulations for the LPG Exchange and Swapping Program, and the LPG
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Cylinder Improvement Program pursuant to Sections 30 and 31 of this Act;
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(n) Undertake with DTI, Department of the Interior and Local Government
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(DILG), and BFP information, education, and communication activities on
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health, safety, security, environmental, and quality standards for LPG, LPG
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pressure vessels, auto-LPG vehicles, ancillary equipment, other
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appurtenances, and authorized motor vehicles transporting LPG to enhance
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awareness among end customers, local government units (LGUs), and the
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Philippine National Police (PNP);
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(o) Conduct research and development with the Department of Science and
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Technology towards new LPG technologies and LPG pressure vessel
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improvement and more efficient methods of providing safe, clean, and
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hazard-free LPG to end consumers; and
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(p) Exercise such other powers and functions as may be necessary or incidental
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to attaining the objectives of this Act.
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SECTION 7. Powers and Functions of the Department of Trade and Industry
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(DTI). - In addition to its mandate under existing iaws, the DTI shali have the
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foliowing powers and functions:
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(a) In collaboration with DOE and related stakeholders, develop, formulate,
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promulgate, review and revise, as may be necessary, the PNS for:
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(i) Refining plants, refilling plants, depots, storage areas, transportation
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facilities, retail outlets, installation of LPG containers, retrofitting of
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motor vehicles with LPG containers, auto-LPG dispensing stations, and
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other related facilities or premises of LPG industry participants, and
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(ii) LPG, LPG pressure vessels to include LPG cylinders in circulation,
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whether filled or unfilled, which are for distribution and sale to dealers,
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retail outlets, and end consumers, and other ancillary equipment;
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(b) Determine methods of re-qualification of LPG pressure vessels and accredit
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re-qualifiers of LPG pressure vessels, if applicable, through the issuance of a
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certificate of accreditation;
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(c) Certify manufacturers, importers, and repairers of LPG pressure vessels, if
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applicable, and auto-LPG conversion shops through the issuance of a PS
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license or ICC certificate;
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(d) Determine frequency of re-qualification of LPG pressure vessels, if
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applicable;
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(e) Inspect, evaluate, and confirm compliance with the PNS and other accepted
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codes and standard adopted by DTI as PNS, and fitness for sale and public
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distribution of LPG pressure vessels and ancillary equipment through the
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issuance of a PS license, ICC certificate, and a certificate of accreditation in
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the case of re-qualifiers of LPG pressure vessels, whichever is applicable;
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(f) Grant and revoke, if warranted, the certificate of accreditation, PS license,
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and ICC certificate, whichever is applicable, of LPG industry participants and
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their respective LPG pressure vessels pursuant to Section 26 of this Act; and
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(g) Undertake with the DOE, DILG, and BFP information, education, and
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communication activities pursuant to Section 6(n) of this Act.
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SECTION 8. Powers and Functions of the Department of the Interior and
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Locai Government (DILG). - In addition to its mandate under existing iaws, the
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DILG shail have the foiiowing powers and functions:
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(a) Undertake with DOE, DTI, and BFP information, education, and
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communication activities pursuant to Section 6(n) of this Act;
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(b) Coordinate and cooperate with the DOE for the orderiy and effective
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implementation of this Act, rules, regulations, and other issuances
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promulgated pursuant thereto, together with LGUs, BFP, and the PNP; and
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(c) Extend all the necessary assistance to the DOE with respect to the
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enforcement of measures to attain the objectives of this Act.
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SECTION 9. Powers and Functions of the Bureau of Fire Protection (BFP). -
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In addition to its mandate under existing laws, the BFP shall strictly implement the
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provisions of Republic Act No. 9514 otherwise known as the Fire Code of the
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Philippines and its revised implementing rules and regulations on the manufacturing,
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storage, handling, use, and transportation of LPG to include the facilities on fire safety
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devices and its appurtenances including the issuance of all permits and certificates:
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Provided, That the guidelines for the transportation of LPG and LPG pressure vessels
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shall be formulated together with the DOE and LTO, pursuant to Section 36 of this
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Act. The BFP shall also undertake with DOE, DTI, and DILG information, education,
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and communication activities pursuant to Section 6(n) of this Act
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SECTION 10. Powers and Functions of the Land Transportation Office (LTO)
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and the Land Transportation Franchising and Regulatory Board (LTFRB). -
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In addition to its mandate under existing laws, the LTO and LTFRB, whichever is
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applicable, shall issue the appropriate guidelines and regulations governing the
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following:
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(a) Auto-LPG motor vehicles including those utilized as public utility vehicles,
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related facilities, and inspection centers;
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(b) Accreditation of drivers and attendants for authorized motor vehicles used in
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the transportation of LPG in bulk, LPG from one LPG industry participant to
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another, and filled and unfilled LPG cylinders and cartridges to other LPG
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industry participants and end consumers together with the DOE pursuant to
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Section6(b)(iii)(3) of this Act; and
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(c) Authorized motor vehicies used in the transportation of LPG in bulk, LPG from
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one LPG industry participant to another, and fiiled and unfilied LPG cyiinders
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and cartridges to other LPG industry participants and end consumers,
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together with the DOE and BFP, pursuant to Section 36 of this Act.
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SECTION 11. Powers and Functions of Maritime Industry Authority
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(MARINA). - In addition to its mandate under existing iaws, the MARINA shali issue
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the appropriate guidelines and reguiations governing shipping or water transport of
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LPG and fiiled and unfiiled LPG pressure vessels.
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SECTION 12. Powers and Functions of Locai Government Units (LGUs). - In
addition to their mandate under existing laws, LGUs shall have the following powers 
and functions:
(a) 
Assist the DOE in identifying LPG industry participants in violation of the 
provisions of this Act;
(b) 
Assist the DOE in identifying an area for impounded LPG pressure vessels, 
motor vehicles, and other associated equipment;
(c) 
Suspend or revoke, upon due notice and hearing, the business permit or 
license of an LPG industry participant upon the issuance by the DOE of a 
notice of suspension or revocation of its license to operate pursuant to 
Section 6 of this Act; and
(d) 
Communicate to DOE the suspension or revocation of the business permit or 
license of an LPG industry participant within five (5) days from such 
suspension or revocation.
SECTION 13. Powers and Functions of the Philippine National Police (PNP) 
and Other Law Enforcement Agencies. — In addition to their mandate under 
existing laws, the PNP and other law enforcement agencies shall:
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(a) Assist DOE, upon its request, in the exercise of its powers pursuant to Section
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6 of this Act to include inspections of LPG facilities and motor vehicles
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transporting LPG in bulk or in cylinders and cartridges; and
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(b) Conduct lawful searches and seizures, if applicable, of LPG facilities and motor
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vehicles transporting LPG in bulk or in cylinders and cartridges.
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SECTION 14. Powers and Functions of the Department of Environment and
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Naturai Resources (DENR). - In addition to its mandate under existing laws, the
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DENR shall issue, together with the DOE, guidelines for the disposal of LPG, LPG 
contaminated water, and LPG pressure vessels.
CHAPTER III
RESPONSIBILITIES OF LPG INDUSTRY PARTICIPANTS
SECTION 15. Importer. - In addition to the provisions under this Act, an importer 
shall:
(a) Ensure that the LPG, bulk storage tanks, LPG pressure vessels, and ancillary 
equipment it brings into the country complies with standards promulgated 
pursuant to this Act; and
(b) Observe safe LPG handling practices.
SECTION 16. Bulk Supplier. - In addition to the provisions under this Act, a bulk 
supplier shall:
(a) Ensure adequate and stable supply of LPG in bulk;
(b) Make certain that facilities, authorized motor vehicles, and marine vessels 
utilized for importation, refining, storage, exporting, transporting, distributing, 
and marketing activities are in safe operating conditions at all times;
(c) Enter into contracts or agreements only with bulk consumers registered with 
the DOE and other LPG industry participants with a valid license to operate;
(d) Submit a certification to the DOE on the contracts or agreements it has entered 
into with bulk consumers within a reasonable period of time from the execution 
thereof;
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(e) Submit to DOE a list of all authorized motor vehicles used for the transportation 
of LPG in bulk, and comply with the safety standards, requirements, and 
guidelines for such pursuant to Section 36 of this Act; and
(f) Install signage at its storage facilities pursuant to DOE's guidelines under 
Section 6 of this Act.
SECTION 17. Bulk Distributor. - In addition to the provisions under this Act, a 
bulk distributor shall;
(a) Ensure adequate and stable supply of LPG in bulk;
(b) Enter into contracts or agreements only with LPG industry participants who 
have a valid license to operate, and duly registered in the case of bulk 
consumers;
(c) Submit a certification to the DOE on the contracts or agreements it has entered 
into with LPG industry participants within a reasonable period of time from the 
execution thereof;
(d) Submit to DOE a list of all authorized motor vehicles utilized for the transport 
of LPG in bulk, and comply with the safety standards, requirements, and 
guidelines for such pursuant to Section 36 of this Act;
(e) Install signage at its storage facilities pursuant to DOE's guidelines under 
Section 6 of this Act; and
(f) Ensure the periodic testing and re-qualification of LPG pressure vessels and 
periodic calibration of its measuring devices by the concerned government 
agency or duly recognized testing facility.
SECTION 18. Hauler. - In addition to the provisions under this Act, a hauler shall:
(a) Submit to DOE a list of all authorized motor vehicles utilized for the transport 
of filled and unfilled LPG cylinders or cartridges, and comply with the safety 
standards, requirements, and guidelines for such pursuant to Section 36 of this 
Act;
(b) Enter into contracts or agreements only with LPG industry participants who 
have valid license to operate; and
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(c) Submit a certification to the DOE on the contracts or agreements it has entered 
into with LPG industry participants within a reasonable period of time from the 
execution thereof.
SECTION 19. Refiller. - In addition to the provisions under this Act, a refiller shall:
(a) Enter into contracts or agreements only with bulk suppliers with a valid license 
to operate;
(b) Fill LPG cylinders under its own trademark or tradename and its duly- 
authorized trademarks or tradenames;
(c) Fill LPG cylinders accurately as to the required exact net content of the LPG 
cylinder;
(d) Test the weight and conduct a leak test of every LPG cylinder before it leaves 
the refilling plant;
(e) Only refill LPG cylinders that comply with the PNS and bear the necessary PS 
or ICC safety and quality marks, whichever is applicable;
(f) Refuse to refill the following:
(i) Cartridges, and
(ii) Cylinders not designed or intended for refilling of LPG due to non- 
compliance with the PNS, or not certified or allowed by the DTI and do 
not bear the necessary PS or ICC safety and quality marks, whichever is 
applicable;
(g) Observe safe LPG handling practices;
(h) 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.
SECTION 20. Trademark Owner or Marketer. - In addition to the provisions 
under this Act, a trademark owner or marketer shall:
(a) Carry its own trademark or tradename of LPG;
(b) Ensure the following:
(i) Adequate and timely supply of LPG to its dealers, retail outlets, and end 
consumers, and
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(ii) Correct weight of LPG filled cylinders or cartridges delivered to its dealers,
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retail outlets, and end consumers;
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(c) Procure new LPG cylinders only from reputable and duly licensed LPG cylinder
4 
manufacturers and importers;
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(d) Only utilize LPG cylinders or cartridges that comply with the PNS;
6 
(e) Ensure that there is a permanent marking of a registered, valid, and existing
7 
trademark or tradename indicated on the LPG cylinder or cartridge, as
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prescribed in the PNS;
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(f) Utilize a distinguishable color and marking scheme for all its LPG cylinders and
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register the same with the DOE;
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(g) Register its LPG seal and seal manufacturer with the DOE;
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(h) Maintain and repair all LPG cylinders under its own trademark or tradename
13 
through duly licensed manufacturers and repairers, and accredited re-
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qualifiers;
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(i) Provide servicing, delivery, and technical assistance to all its dealers, retail
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outlets, and end consumers;
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(j) Observe safe LPG handling practices;
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(k) Submit to the DOE a list of all authorized motor vehicles used for the
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transportation of its LPG and LPG cylinders or cartridges, and comply with the
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safety standards, requirements, and guidelines for such pursuant to Section 36
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of this Act;
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(I) Publicly display its price board, if applicable; and
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(m) Periodically check compliance of dealers and retail outlets with the
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following:
25 
(i) 
Content requirements of LPG sold, and
26 
(ii) 
Proper calibration and sealing of weighing devices.
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SECTION 21. Dealer. - In addition to the provisions under this Act, a dealer shall:
29 
(a) Enter Into a contract or agreement with a duly licensed trademark owner or
30 
marketer;
31 
(b) Only carry the trademark or tradename of LPG of a refiller or marketer with
32 
whom it has a contract or agreement with;
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(c) Only sell LPG in cylinders with an authorized LPG seal of its refiller or marketer;
2 
(d) Provide appropriate weighing devices which shali accurately measure LPG filled
3 
cylinders;
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(e) Ensure the correct weight of LPG filled cylinders or cartridges delivered to its
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retaii outlets and end consumers;
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(f) Put up display and storage facilities within its area of operation;
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(g) Provide servicing, deiivery, and technical assistance for its retail outlets and
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end consumers;
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(h) Observe safe LPG handling practices;
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(i) Submit to the DOE a list of all authorized motor vehicles used for the transport
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of LPG and LPG cylinders or cartridges, and comply with the safety standards,
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requirements, and guidelines for such pursuant to Section 36 of this Act;
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(j) Ensure that each filled LPG cylinder or cartridge conforms with the PNS prior
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to acceptance from its duly licensed trademark owner or marketer and bear
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the necessary PS or ICC safety and quality marks, whichever is applicable;
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(k) Publicly display its price board; and
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(I) Periodically check compliance of retail outlets with the following:
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(i) Content requirements of LPG sold, and
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(ii) Proper calibration and sealing of weighing devices.
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SECTION 22. Retail Outlet. - In addition to the provisions under this Act, a retail
22 
outlet shali:
23 
(a) Sell only the trademarks or tradenames of LPG filled cylinders or cartridges it
24 
is authorized to carry by virtue of its contract or agreement with duly licensed
25 
trademark owners, marketers, or dealers;
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(b) Only sell LPG in cylinders with authorized LPG seals of its duly licensed
27 
trademark owner, marketer, or refiller;
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(c) Publicly display its price board;
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(d) Provide appropriate weighing devices which shall accurately measure LPG
30 
cylinders or cartridges;
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(e) Request the trademark owner, marketer, or dealer for a qualified LPG service
32 
person to render services to its end consumers;
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(f) Install and provide in its respective establishments fire extinguishers, printed 
materials, and posters showing procedures on how to prevent and react to 
LPG reiated accidents;
(g) Observe safe LPG handiing practices; and
(h) Ensure that each LPG fiiled cyiinder or cartridge conforms with the PNS prior 
to acceptance from the trademark owner, marketer, or dealer and bear the 
necessary PS or ICC safety and quality marks, whichever is appiicable.
CHAPTER IV
REGISTRATION, LICENSES, AND PERMITS
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SECTION 23. Registration Prior to Commencement of Construction. - In
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addition to other permits under existing iaws, bulk suppliers, refiilers, and bulk
14 
customers shall register with DOE before commencement of construction of terminals
15 
and refilling plants.
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SECTION 24. License to Operate. - In addition to other permits, certifications,
18 
ciearances, and licenses under existing laws such as the Fire Code of the Phiiippines,
19 
every LPG industry participant shail secure a iicense to operate for a specific activity
20 
prior to the commencement of commercial operation, and shail publicly post such
21 
license to operate in its business establishment or premises. In the event that the
22 
LPG industry participant intends to engage in a new activity outside of its current
23 
iicense to operate, it shali secure another license to operate for such new activity. Ali
24 
LPG industry participants shall conduct business only with LPG industry participants
25 
with a valid iicense to operate for the specific activity they are engaged in.
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The DOE shali have the exclusive authority to issue the iicense to operate. It shali be
28 
vaiid for a period of three (3) years or any such period as may be determined by the
29 
DOE. The license to operate shali be a mandatory requirement for the grant or
30 
renewal of any license or permit issued by the LGU to the LPG industry participant.
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Any person already engaged in any activity as defined herein, at the time of the
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effectivity of this Act, shall obtain a license to operate within six (6) months from the
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promulgation of this Act's implementing ruies and regulations.
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SECTION. 25. Registration of Bulk Consumers and Centralized LPG Piping 
Systems. - A bulk consumer, and the owner and operator of a centralized LPG piping 
system shall register with the DOE: Provided, That a bulk consumer, and the owner 
or operator of a centralized LPG piping system 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 registration does not exempt the buik consumer, and 
the owner and operator of the centralized LPG piping system from compliance with 
quality and safety requirements and standards as provided under this Act and existing 
laws such as the Fire Code of the Philippines.
SECTION 26. Import Commodity Clearance Certificate, Certificate of 
Accreditation, and Philippine Standards License. - An LPG industry participant 
who engages in importation, re-qualification, manufacture, or repair of LPG pressure 
vessels and cartridges, whichever is applicable, shall obtain an ICC certificate, 
certificate of accreditation, or PS license, whichever is appiicable, from DTI prior to 
the commencement of commercial operation, and as may be determined by the DTI.
Any LPG industry participant already engaged in importation, re-qualification, 
manufacture, or repair of LPG cylinders and cartridges, whichever is applicable, at the 
time of effectivity of this Act shall secure the required certificates and license from the 
DTI within six (6) months from the promuigation of this Act's implementing ruies and 
regulations.
CHAPTERV 
AUTO-LPG
SECTION 27. Auto-LPG Container Importers and Manufacturers, Auto-LPG 
Conversion Shops, and Auto-LPG Dispensing Stations. - Any LPG industry
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participant who imports or manufactures auto-LPG containers, engines, and 
accessories, instails auto-LPG containers, engines, and accessories, retrofits motor 
vehicies with auto-LPG containers, or operates an auto-LPG conversion shop shall 
comply with the requirements, quality and safety standards, rules, and regulations 
issued by the DTI and LTO pursuant to Sections 7 and 10 of this Act and other 
pertinent government agencies to include BFP.
Any LPG industry participant who constructs and operates an auto-LPG 
dispensing station shall comply with the requirements, quality and safety standards, 
rules, and regulations issued by the DOE pursuant to Section 6 of this Act and other 
relevant government agencies to include the BFP.
CHAPTER VI
OWNERSHIP OF LPG CYLINDERS AND LPG CONTAINERS
SECTION 28. Ownership of LPG Cylinders. - The trademark owner whose 
permanent mark appears on the LPG cylinder shall be the owner thereof. The 
ownership applies to LPG cylinders sold, subject of exchange or swapping, or which 
are in the possession of any refiller, bulk distributor, marketer, dealer, retail outlet, or 
re-qualifier, or such other person duly authorized by the trademark owner.
The trademark owner that owns the LPG cylinder shall have the obligation to ensure
22 
that all of its LPG cylinders comply with all the required quality and safety standards
23 
to include re-qualification, and other rules and regulations before they are released
24 
for distribution: Provided, That receipt by the DOE of a notice or report from the
25 
trademark owner, as verified by DTI, regarding any lost, stolen, or missing LPG 
cylinder shall prima facie relieve the trademark owner of the obligation to ensure the 
quality and safety of such LPG cylinder.
SECTION 29. Ownership of Auto-LPG Containers. - An auto-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 auto-LPG container shall be with the owner 
of the motor vehicle to which the auto-LPG container is permanently installed. The
23


owner of the LPG container shall ensure compliance with the quality and safety 
standards, rules, and regulations pursuant to the provisions of this Act and existing 
laws.
CHAPTER VII
LPG CYLINDER EXCHANGE, SWAPPING, AND IMPROVEMENT PROGRAMS
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Section 30. LPG Exchange and Swapping Program - Within six (6) months from
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the effectivity of this Act's implementing rules and regulations, the DOE, together with
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the DTI and in consultation with all LPG industry participants, consumer groups, and 
other public and private stakeholders, shall formulate and publish an LPG Cylinder 
Exchange and Swapping Program, which shall include, among others, the procedure 
and timeline for exchange, swapping, and buyback of LPG cylinders, the computation 
of the depreciated value of LPG cylinders, and the establishment of accredited LPG 
cylinder swapping centers.
The LPG Cylinder Exchange and Swapping Program shall be governed by the 
following principles:
(a) It shall be aligned with the LPG Cylinder Improvement Program as specified 
in this Act;
(b) The safety of LPG cylinders shall be paramount towards the protection of 
all end consumers;
(c) The end consumer shall have the freedom of choice in the purchase of LPG 
filled cylinders;
(d) AII LPG industry participants shall take part in the LPG Exchange and 
Swapping Program;
(e) AII arrangements, agreements, and contracts entered into between 
participants shall be executed using fair, reasonable, and non-discriminatory 
terms; and
(f) Any arrangement which may significantly increase the retail price of LPG 
filled cylinders shall be subject to consultation with consumer groups and 
LPG industry participants.
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The DOE, together with the DTI and in coordination with LPG industry
2 
participants, shall create a task force to include public and private stakeholders to
3 
assist in the implementation of the LPG Cylinder Exchange and Swapping Program.
4
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Section 31. LPG Cylinder Improvement Program. - Within six (6) months from
6 
the effectivity of this Act's Implementing rules and regulations, the DOE, together with
7 
the DTI and in consultation with all LPG industry participants, consumer groups, and
8 
other public and private stakeholders, shall formulate and publish an LPG Cylinder
9 
Improvement Program which shall include, among others, the entities responsible for
10 
establishing and the amount to be set aside for the LPG Cylinder Improvement
11 
Program fund, the allowed uses and entities authorized to utilize the fund, and the
12 
procedures for access and audit of the fund.
13 
The LPG Improvement Program shall be governed by the following principles:
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(a) It shall be aligned with the LPG Exchange and Swapping Program as
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specified in this Act;
16 
(b) The safety of LPG cylinders shall be paramount towards the protection of all
17 
end consumers;
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(c)AII LPG Industry participants shall take part in the LPG Improvement
19 
Program;
20 
(d)A generic cylinder or cylinder without a trademark owner shall first be re-
21 
qualified and then permanently marked with the trademark name of the
22 
trademark owner who was last in possession of the cylinder, and such
23 
trademark owner shall be the owner of the cylinder exercising such rights
24 
and obligations pursuant to this Act;
25 
(e)The program shall not apply to generic cylinders or cylinders without
26 
trademark owners which:
27 
(i) Have been illegally imported, or
28 
(ii) Are defective, injurious, unsafe, and dangerous;
29 
(f) All arrangements, agreements, and contracts entered into between
30 
participants shall be executed using fair, reasonable, and non-discriminatory
31 
terms; and
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(g)Any arrangement which may significantly increase the retail price of LPG 
filled cylinders shall be subject to consultation with consumer groups and 
LPG industry participants.
The DOE and DTI shall determine the transition period for the permanent 
marking of all generic cylinders and cylinders without a trademark or tradename in 
circulation in the market: Provided, That such transition period shall not be beyond 
five (5) years from the time of the effectivity of the LPG Cylinder Improvement 
Program. The DOE, together with the DTI and in coordination with LPG industry 
participants, shall create a task force to include the public and private stakeholders to 
assist in the implementation of the LPG Improvement Program.
CHAPTER VIII
MONITORING AND ENFORCEMENT MECHANISMS
SECTION 32. 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 and other LPG industry participants any information, document, plan, and 
report constituting trade secrets and proprietary data.
SECTION 33. Central Database of LPG Industry Participants. - The central 
database created by DOE pursuant to Section 6(k) 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 trademark or tradename or logo for LPG, LPG pressure vessels, 
facilities, and equipment;
(c) Certification from LPG industry participants as to who they have contracted 
with when it comes to activities within the scope of this Act pursuant to Section 
4(b) hereof;
(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.
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CHAPTER IX
LPG CYLINDERS AND CARTRIDGES
SECTION 34. Declaration of LPG Cylinder or Cartridge as Uncertified, 
Defective, Injurious, Unsafe, or Dangerous. - When the DOE finds, motuproprio 
or upon complaint of any person, that an LPG cylinder or cartridge is uncertified, 
defective, generic, non-compliant, injurious, unsafe, dangerous, or substandard, 
whichever is applicable, it shall, after due notice, issue the appropriate order for its 
immediate confiscation, recall, seizure, impoundment, or prohibition from public sale 
or distribution: Provided, That duly re-qualified generic cylinders already in the market 
at the time of the effectivity of this Act shall be allowed until the lapse of the transition 
period as determined by DOE and DTI pursuant to Section 31 of this Act. The 
concerned LPG cylinder 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 
or cartridges. The DOE shall terminate the proceedings and make a final 
determination on whether the LPG cylinder or cartridge is uncertified, defective, 
generic, non-compliant, injurious, unsafe, dangerous, or substandard, whichever is 
applicable, within thirty (30) calendar days from the issuance of the order for 
confiscation, recall, seizure, impoundment, or prohibition.
Filled LPG cylinders or cartridges 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 shali be disposed of without serving prior notice to the owners thereof. The 
DOE shaii notify the owner of such fact within five (5) calendar days after such 
disposition.
SECTION 35. LPG in Cartridges. - It shali be unlawful for any person to refill an 
LPG cartridge, or sell or distribute refiiied LPG cartridges.
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CHAPTERX 
TRANSPORT OF LPG
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SECTION 36. Transport of LPG. - All motor vehicles utilized in the transportation
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of bulk LPG and filled LPG cylinders and cartridges shall register with the LTO and shali
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comply with the guidelines of DOE, LTO, and BFP pursuant to Sections 6, 9, and 10 
of this Act.
An LPG industry participant who transports LPG in bulk, LPG, and filled and unfilled 
LPG cylinders or cartridges to another LPG participant or to end consumers shall only 
use authorized motor vehicles that have complied with and met the safety standards, 
requirements, and guidelines prescribed by the DOE, LTO, and BFP.
CHAPTER XI
PROHIBITED ACTS AND PENALTIES
SECTION 37. Prohibited Acts. - Any natural or juridical person, whether an LPG 
industry participant or otherwise, shall be prohibited from the following acts:
(a) Engaging in an activity without a valid license to operate, business permit, and 
other required licenses and certificates issued by relevant agencies;
(b) Engaging in an activity as a bulk consumer or as owner and operator of a 
centralized LPG piping system without registering with DOE;
(c) Manufacturing and repairing of LPG cylinders or cartridges without a valid PS 
license;
(d) Manufacturing and distributing LPG seais without a valid certificate of 
registration;
(e) Re-qualifying of LPG pressure vessels without a valid certificate of 
accreditation, if applicable;
(0 Transacting with, or selling or distributing LPG, LPG cylinders or cartridges, or 
LPG seals to an LPG industry participant who does not have the required 
licenses, certificates, clearances, or permits, whichever is applicable;
(g) Importing used or second-hand LPG cylinders and cartridges;
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(h) Importing brand new LPG cylinders and cartridges non-compliant with PNS and 
without a valid ICC certificate or PS license;
(i) Failing to comply with the standards and requirements on:
(i) Safety design to include fire safety requirements for refining plants, 
refilling plants, depots, storage areas, motor vehicles, retail outlets, 
warehouses, auto-LPG conversion shops, auto-LPG dispensing stations, and 
other related facilities or premises of LPG industry participants,
(ii) Safety practices,
(iii) LPG, and
(iv) Measuring devices;
(j) Fabricating and manufacturing of LPG pressure vessels using substandard 
materials;
(k) Selling and distributing defective, injurious, unsafe, dangerous, non-compliant, 
or substandard LPG pressure vessels;
(l) Manufacturing, selling, or distributing LPG pressure vessels without the 
necessary markings, PS, or ICC safety and quality marks as required by the 
PNS, or the standard governing LPG cylinder manufacture, re-qualification, and 
repair;
(m) 
Selling or distributing refilled LPG cartridges;
(n) Selling or distributing LPG filled cylinders without a seal, with a tampered, fake, 
or broken seal, inappropriate or unauthorized seal, or with a seal not belonging 
to the trademark owner;
(o) Destroying, tampering, altering, or modifying LPG cylinders through any means 
such as changing the LPG cylinder valve, repainting, and re-labeling: Provided, 
That this shall not be prohibited if it is done by the trademark owner;
(p) Stamping wrong, misleading. Incorrect, or inaccurate information on LPG 
cylinders;
(q) Selling or distributing LPG through means other than in LPG pressure vessels, 
using tools other than ancillary equipment and other appurtenances compliant 
with the PNS, or through other contractual arrangements not recognized in this 
Act;
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(r) Filling LPG pressure vessels with LPG mixed with another finished or unfinished
2 
petroleum or non-petroleum product, substance, or material resulting in the
3 
failure of the LPG to meet the required PNS. The possession of LPG pressure
4 
vessels containing adulterated LPG shall be prima fade evidence of violation of
s 
this provision;
6 
(s) Selling of adulterated LPG in bulk and in cylinders;
7 
(t) Refilling cartridges;
8 
(u) Hauling, loading, transporting, or permitting the loading and transportation of
9 
LPG In bulk, or filled LPG cylinders or cartridges in quantities greater than the
10 
rated capacity of the motor vehicle or in such a manner that endangers the life
11 
and safety of its passengers or the public;
12 
(v) Storing LPG in pressure vessels more than the volume prescribed in the Fire
13 
Code of the Philippines and its revised implementing rules and regulations;
14 
(w)Selling or storing empty LPG cylinders of other trademark owners in excess of
15 
those allowed under the LPG Cylinder Exchange and Swapping Program
16 
guidelines upon its effectivity pursuant to Section 30 of this Act;
17 
(x) Manufacturing, distributing, refilling, or selling LPG cylinders carrying a
18 
trademark or tradename without the express approval of the trademark owner;
19 
(y) Selling, exchanging, bartering, distributing, transferring, or possessing of
20 
empty LPG cylinders by any LPG industry participant other than or without the
21 
consent of the trademark owner outside of the LPG Cylinder Exchange and
22 
Swapping Program pursuant to Section 30 of this Act;
23 
(z) Possessing LPG seals, including the seals already used in LPG cylinders without
24 
authority from the trademark or tradename owner or its duly authorized refiller;
25 
(aa) 
Requiring end consumers to exclusively purchase LPG from a trademark
26 
owner, marketer, refiller, dealer, or retail outlet;
27 
(bb) 
Refusing to refund the deposit on the LPG cylinder to any end consumer,
28 
in the case of a trademark or tradename owner and its duly authorized dealer
29 
or retail outlet in accordance with the implementing rules and regulations of
30 
this Act;
31 
(cc) 
Pilfering LPG;
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1 
(dd) 
Failing or refusing to publicly post its license to operate in accordance
2 
with the implementing rules and regulations of this Act;
3 
(ee) 
Failing to submit periodic reports as may be required pursuant to Section
4 
6 of this Act; and
5 
(ff) Refusing, preventing, or obstructing the inspection of its premises and records
6 
pursuant to Section 6(i) of this Act;
7 
(gg) 
Refusing or failing to participate in the LPG Cylinder Exchange and
8 
Swapping Program, and LPG Cylinder Improvement Program pursuant to
9 
Sections 30 and 31 of this Act;
10 
(hh) 
Failing to comply with the responsibilities in Chapter III hereto;
11 
(ii) For retail outlets, dealers, and marketers, failing to display price board;
12 
(jj) Creating, manufacturing, and possessing illegal or fake seals;
13 
(kk) 
Utilizing the LPG Cylinder Improvement fund for purposes other than
14 
what it is intended for;
15 
(II) Failure to submit certification pursuant to Section 33(c) of this Act; and
16 
(mm) 
Failure to comply with the safety design and requirements, permits, and
17 
clearances of motor vehicles transporting LPG in bulk and LPG cylinders.
18
19 
SECTION 38. Underfilling. - The following acts undertaken by the following natural
20 
or juridical persons shall constitute underfilling of LPG cylinders:
21 
(a) The refiller when the net quantity of LPG contained in an LPG cylinder sold,
22 
transferred, delivered, or filled is less than the LPG cylinder content required
23 
at the filling plant; and
24 
(b) The dealer or retail outlet when the net quantity of LPG in a cylinder sold,
25 
transferred, or delivered is less than the required LPG cylinder content
26 
quantity.
27 
A broken, tampered, absent, or removed seal shall be considered prima facie evidence
28 
of underfilling.
29
30 
SECTION 39. Illegal Refilling. - The following acts shall constitute illegal refilling
31 
of LPG cylinders:
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(a) Filling or refilling LPG cylinders with products or substances other than LPG 
in an effort to achieve the correct net weight;
(b) Filling or refilling of LPG cylinders directly from LPG tank trucks;
(c) 
Unauthorized cross-filling;
(d) Refilling of LPG from one LPG cylinder to another cylinder;
(e) Refilling of LPG cylinders other than in duly licensed LPG refilling plants;
(f) 
Refilling of LPG cylinders:
(i) Bearing defaced, tampered, or illegible markings contrary to the 
mandatory labeling and stamping requirements under this Act,
(ii) Non-compliant with PNS,
(iii) Due for repair, re-qualification or scrappage, or are subject to a recall or 
prohibition order of the DOE or DTI,
(iv) By auto-LPG dispensing stations;
(g) Unauthorized loading of bulk LPG tanks; and
(h) Any other filling or refilling of LPG pressure vessels in violation of the 
requirements and standards under this Act.
SECTION 40. Hoarding. - An LPG industry participant who commits hoarding of 
LPG and LPG products as defined in Section 5 of Republic Act No. 7581, otherwise 
known as the Price Act as amended, shall be liable and penalized for illegal acts of 
price manipulation under Republic Act No. 7581 as amended.
SECTION 41. Penalties. - Any person found in violation of the following acts shall 
have the following administrative and criminal penalties:
(a) Section 37 (a), (b), (dd), and (ii):
(i) First offense - Administrative penalty of fine amounting to a minimum of 
five thousand pesos (P5,000.00) for each day of operation without the required 
license or certificate, or without posting the price display board or license to 
operate,
(ii) Second offense - Administrative penalty of fine amounting to a minimum 
of ten thousand pesos (P10,000.00) for each day of operation without the
32


1 
required license or certificate, or without posting the price display board or
2 
license to operate, and
3 
(iii) Third offense - Administrative penalty of fine amounting to a minimum of
4 
twenty thousand pesos (P20,000.00) for each day of operation without the
5 ■ 
required license or certificate or without posting the price display board or
6 
license to operate;
7 
(b) Sections 37 (c), (d), (e), (f), (g), (h), (x), (y), (z) and Qj), 38, and 39:
8 
(i) First offense - Administrative penalties of fine amounting to a minimum of
9 
ten thousand pesos (P10,000.00) for every LPG pressure vessel, cylinder, or
10 
seal and, if applicable, closure until the required licenses and permits are
11 
accomplished,
12 
(ii) Second offense - Administrative penalties of fine amounting to a minimum
13 
of twenty thousand pesos (P20,000.00) for every LPG pressure vessel, cylinder,
14 
or seal and, whichever is applicable, suspension of license to operate or closure
15 
until the required licenses and permits are accomplished. Upon conviction,
16 
criminal penalty of imprisonment of at least six (6) months but not more than
17 
one (1) year, and
18 
(iii) Third offense - Administrative penalties of fine amounting to a minimum
19 
of thirty thousand (P30,000.00) for every LPG pressure vessel, cylinder, or seal,
20 
closure, and permanent disqualification from engaging in any activity as an LPG
21 
industry participant. Upon conviction, criminal penalty of imprisonment of one
22 
(1) year and one (1) day but not more than three (3) years;
23 
The illegally refilled LPG cylinders in Section 39 (c), (d), (e), (f), (g), and (h)
24 
shall be confiscated outright.
25 
(c) Section 37 (i)(i), (i)(ii), (i)(iii), (u), (v), (w), (aa), (gg), (hh), and (mm):
26 
(i) First offense - Administrative penalty of fine amounting to a minimum of
27 
one hundred thousand pesos (P100,000.00): Provided, That for retail outlets
28 
the fine shall be a minimum of Ten thousand pesos (P10,000.00),
29 
(ii) Second offense - Administrative penalties of fine amounting to a minimum
30 
of two hundred thousand pesos (P200,000.00) and suspension of license to
31 
operate: Provided, That for retail outlets the fine shall be a minimum of Twenty
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1 
thousand pesos (P20;000.00). Upon conviction, criminal penalty of
2 
imprisonment of at least six (6) months but not more than three (3) years, and
3 
(iii) Third offense - Administrative penalties of fine amounting to a minimum
4 
of three hundred thousand pesos (P300,000.00), closure, and permanent
5 
disqualification from engaging in any activity as an LPG industry participant:
6 
Provided, That for retail outlets the fine shall be a minimum of thirty thousand
7 
pesos (P30,000.00). Upon conviction, criminal penalty of imprisonment of at
8 
least three (3) years and one (1) day but not more than six (6) years;
9 
(d) Section 37 (i)(iv), (ee), (ff), and (II):
10 
(i) First offense - Administrative penalty of fine amounting to a minimum of
11 
ten thousand pesos (P10,000.00),
12 
(ii) Second offense - Administrative penalties of fine amounting to a minimum
13 
of twenty thousand pesos (P20,000.00) and suspension of license to operate,
14 
and
15 
(iii) Third offense - Administrative penalties of fine amounting to a minimum
16 
of thirty thousand pesos (P30,000.00), closure, and in the case of Section 37
17 
(ee), (ff), and (II) permanent disqualification from engaging in any activity as
18 
an LPG industry participant;
19 
(e) Section 37 0), (k), (I), (m), (n), (o), (p), (r), (s), and (t):
20 
(i) First offense - Administrative penalty of fine amounting to a minimum of
21 
twenty-five thousand pesos (P25,000.00) for every LPG cylinder or pressure
22 
vessel: Provided, That in the case of broken seals, the fine shall be minimum
23 
of one thousand pesos (P1,000) for every LPG cylinder,
24 
(ii) Second offense - Administrative penalties of fine amounting to a minimum
25 
of fifty thousand pesos (P50,000.00) for every LPG cylinder or pressure vessel
26 
and suspension of license to operate. Upon conviction, criminal penalty of
27 
imprisonment of at least one (1) year but not more than three (3) years. In
28 
the case of broken seals, the administrative penalty of fine shall be a minimum
29 
of four thousand pesos (P4,000) for every LPG cylinder and there shall be no
30 
criminal penalty;
31 
(iii) Third offense - Administrative penalties of fine amounting to a minimum
32 
of one hundred thousand pesos (P100,000.00) for every LPG cylinder or
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pressure vessel, confiscation of LPG cylinders, closure, and permanent 
disqualification from engaging in any activity as an LPG industry participant. 
Upon conviction, the criminal penalty of imprisonment of at least three (3) 
years and one (1) day but not more than six (6) years. In the case of broken 
seals, the administrative penalty of fine shall be a minimum of eight thousand 
pesos (P8,000) for every LPG cylinder and there shali be no criminal penalty; 
(f) Section 37 (q), (bb), (cc), and (kk): Administrative penalties of fine amounting 
to a minimum of one million pesos (P1,000,000.00), closure, and permanent 
disqualification from engaging in any activity as an LPG industry participant. 
Upon conviction, criminal penalty of imprisonment of six (6) months to one (1) 
day to six (6) years.
SECTION 42. Violations by Juridical Entities. - If the violation is committed by a
14 
corporation, partnership, association or other juridical entity, the penalty of
15 
imprisonment shall be imposed on the responsible directors or officers thereof.
16
17 
SECTION 43. Suspension, Cessation, and Closure. - Nothing in this Chapter
18 
shall preclude the DOE from ordering the suspension or cessation of the operation of
19 
the facility, or the closure thereof until such time that the mandatory requirements or
20 
corrective measures directed by the DOE have been met.
21
22 
SECTION 44. Initiation of Administrative Action by the DOE. - An
23 
administrative action shall be initiated by the DOE through the issuance of a show
24 
cause order to the LPG industry participant, giving the latter the opportunity to explain
25 
in writing within the period prescribed by DOE from receipt of the order: Provided, 
That the entire administrative proceeding shall not exceed sixty (60) calendar days 
from the issuance of a show cause order to the final resolution by the DOE. The DOE 
shall have the discretion to conduct a hearing pertaining to the violation, or to impose 
an outright penalty based on the merits of the written explanation.
SECTION 45. Imposition of Preventive Suspension Order. - Without prejudice 
to other administrative remedies, the DOE may, during the pendency of an
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1 
administrative proceeding, suspend the operations of the concerned business of an
2 
LPG industry participant subject of the proceeding within a maximum period of thirty
3 
(30) caiendar days to prevent undue interference in the ongoing investigation in
4 
accordance with the implementing rules and regulations of this Act.
SECTION 46. Impoundment and Disposition of Impounded Evidence. -
Without prejudice to Section 34 of this Act, the DOE with the assistance of law 
enforcement agencies pursuant to Section 13(a) of this Act, shall be authorized to 
impound prohibited LPG, LPG pressure vessels, ancillary equipment, appurtenances 
and motor vehicles. The final disposal of the impounded items shall be subject to the 
final and executory judgment of DOE or the court having jurisdiction over the 
prohibited act.
CHAPTER XII 
FINAL PROVISIONS
SECTION 47. Sharing of Fines and Penalties. - The city or municipality where 
the principal place of business of an LPG industry participant is located shall be allotted 
a forty percent (40%) share of the proceeds from fines and penalties collected by the 
DOE from the concerned LPG industry participant: Provided, that the remaining sixty 
percent (60%) shall be used by the DOE to implement the provisions of this Act 
including information dissemination, capacity building, and research and development.
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SECTION 48. Utilization of LGU Share. - The LGU shall use its share from the
25 
fines and penalties collected pursuant to Section 47 of this Act exclusively for the
26 
purpose of transporting, hauling, storing, decanting, and disposing confiscated LPG,
27 
LPG products, pressure vessels, ancillary equipment, and other appurtenances.
28
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SECTION 49. Permits and Licenses. - The procedure for the issuance of all permits
30 
and licenses issued pursuant to this Act shall be governed by Republic Act No. 11234,
31 
otherwise known as the Energy Virtual One-Stop Shop Act.
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SECTION 50. Establishment of Dedicated Office. - The DOE shall establish a 
dedicated office for the effective implementation of this Act. The organizational 
structure and staffing complement shall be determined by the Secretary of DOE, in 
consultation with the Department of Budget and Management, and in accordance with 
existing civil service rules and regulations. The budgetary requirements shall be taken 
from the current appropriations of DOE. Thereafter, the funding for the dedicated 
office shall be included in the annual General Appropriations Act.
SECTION 51. Appropriations. - The amount of Two hundred million pesos 
(P200,000,000.00) for the initial implementation of this Act shall be charged against
11 
the current year's appropriations of the DOE. Thereafter, such amounts necessary for
12 
the sustainable implementation of this Act shall be included in the Annual General
13 
Appropriations Act.
SECTION 52. Impiementing Ruies and Regulations. - The DOE together with 
the DTI, and in consultation with the concerned government agencies and 
stakeholders, to include consumer groups, shall promulgate the implementing rules
18 
and regulations of this Act within sixty (60) days from its effectivity. All guidelines,
19 
regulations, and other issuances mandated to be promulgated in this Act shall be 
issued within sixty (60) days from the promulgation of this Act's implementing rules 
and regulations except in the case of the LPG Exchange and Swapping Program and 
the LPG Cylinder Improvement Program which shall be promulgated pursuant to 
Sections 30 and 31 of this Act.
SECTION 53. Transition Period. - Unless otherwise provided in this Act, the DOE 
shall, upon prior consultation with the LPG industry participants and other government
27 
agencies and taking into account data obtained from LPG industry participants and
28 
other sources, determine the appropriate transition period to allow for compliance by
29 
all LPG industry participants with the objectives of this Act: Provided, That such
30 
transition period shall not be beyond six (6) months from the effectivity of this Act's
31 
implementing rules and regulations.
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SECTION 54. Congressional Oversight. — The Joint Congressional Energy
2 
Commission shall exercise oversight powers over the implementation of this Act.
3
4 
SECTION 55. Construction and Interpretation. - Any doubt in the interpretation
5 
of any provision in this Act shall be interpreted in favor of the interests of the
6 
consumers and the general public.
7
8 
SECTION 56. Separability Clause. - If for any reason, any chapter, Section or
9 
provision of this Act shall be declared unconstitutional, illegal, or invalid, such parts
10 
not affected thereby shall remain in full force and effect.
11
12 
SECTION 57. Repealing Clause. - All laws, decrees, executive orders,
13 
proclamations and administrative regulations, or parts thereof inconsistent herewith
14 
are hereby repealed or modified accordingly.
15
16 
SECTION 58. Effectivity Clause. - This Act shall take effect after fifteen (15) days
17 
after its publication in the Official Gazette or in at least two (2) newspapers of general
18 
circulation.
19
20 
Approved,
38