FIFTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No.__ 3408

Tniroduced by. ATTY. MA. THERESA B. BONOAN-DAVID
4" District, City of Manila

EXPLANATORY NOTE
‘The Constitution Article XVI, provides:

Section 9, The State shall protect consumers form trade malpractices and from
substandard or hazardous products (Italics supplied)

From the vehicles we drive to the equipment we use, our society relies on
gasoline to fuel our lives. The high demand for this commodity and recent fluctuations in
its price warrant a closer look at the issue of predatory pricing.

This bill seeks to impose civil penalties on unreasonable price increases for crude
oil, residual fuel oil, or refined petroleum products

ATTY. MA. THERESA B, BONOAN-DAVID

4" District, Manila


FIFTEENTH CONGRESS OF THE REPUBLIC)

OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
House Bill No._3 403

Introduced by: ATTY. MA. THERESA B. BONOAN-DAVID
4" District, City of Manila

AN ACT IMPOSING CIVIL PENALTIES ON UNREASONABLE PRICE
INCREASES FOR CRUDE OIL, RESIDUAL FUEL OIL, OR REFINED
PETROLEUM PRODUCTS

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

SECTION 1. Short Title - This Act shall be known as the “Fuel Pricing
Fairness Act of 2010.”

‘SEC. 2. Declaration of Policy - It is the policy of the State to protect consumers
from trade malpractices and from substandard or hazardous products.

SEC. 3. Definition of Terms — For the purposes of this Act, the term:

(A) “ Energy-producing company” mean a person or entity engaged in:

1) Ownership or control of mineral field resources or non-mineral energy
resources:

2) Exploration for, or development of, mineral fuel resources;

3) Extraction of mineral fuel or non-mineral energy resources,

4) Relining, milling or otherwise processing mineral fuel or non-mineral
energy resources:

5) Storage of mineral fuel or non-mineral energy resources by any means
whatever, or

6) Wholesale or retail distribution or mineral fuels, non-mineral energy
resources or electrical energy;

(B) “Unreasonable price increase” means any price increase that exceeds any
concurrent increase in the production or operation cost of the energy-
producing company that are directly related to the products being sold.

(© “Energy Industry” means all energy-producing companies.

(D) “Crude Oil” means a naturally-occurring substance found trapped in certain
rocks below the earth’s crust. It is a dark, sticky liquid which scientifically
speaking, is classed as a hydrocarbon. It is a highly flammable that can be
burned to create energy.

(E) “Residual Fuel Oil” means a liquid or semi-liquid, high boiling fraction of
residue from the distillation of petroleum which is used as a fuel.

(F) “Refined Petroleum Products” means are derived from crude oils through
processes such as catalytic cracking and fractional distillation. These
products have physical and chemical characteristics that differ according to
the type of crude oil and subsequent refining processes. These include
gasoline, kerosene, LPG, No. 2 Fuel Oil, No. 4 Fuel Oil, No. 5 Fuel Oil
(Bunker B), and No. 6 Fuel Oil (Bunker C)

(G) “LPG” - Liquefied Petroleum Gas

(H) “DOE” means Department of Energy.

(D) “DTT” means Department of Trade and Industry.


SEC. 4. Civil Penalty for Unreasonable Price Increase for Crude Oil, Residual
Fuel Oil, or Refined Petroleum Products —

(A) In General — Not later than three (3) months after the date of enactment of

this Act, the Department of Energy Secretary, in coordination with the
Department of Trade and Industry Secretary, shall issue regulations that —

(1) Apply to all crude oil, residual fuel oil, and refined petroleum products
that are sold and used as energy fuel in the Phi

(2) Prohibit any unreasonable price increase for such products by an
energy-producing company; and

(3) Impose a civil penalty of not less than One Million Pesos
(P1,000,000,00) but not more than Ten Million Pesos
(P10,000,000,00) for each unreasonable price increases,

(B) Determination of Unreasonable Price Increases — The DOE in
coordination with the DTI, shall determine at least annually whether any
energy-producing company has implemented an unreasonable price increase
in violation of regulations issued under paragraph (1) of this Section.

SEC. 5. Separability Clause - If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall
remain valid and subsisting.

SEC. 6. Repealing Clause — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or
inconsistent with, the provision of this Act is hereby repealed, modified, or amended
accordingly.

SEC. 7. Effectivity Clause - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation

Approved,