SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
) 
) 
) 
S.B.NO. 2897 
/ 
(In substitution ofSB Nos. 678, 737 and 2245) D--"A ;l-~~j )~~ 
Prepared by the Committee on Trade, Commerce and Entrepreneurship joint with the 
Committees on Energy & Finance with Senators Legarda, Ejercito-Estrada, Binay 
and Aquino IV, as authors thereof 
AN ACT 
ESTABLISHING THE REGULATORY FRAMEWORK FOR THE SAFE 
OPERATIONS OF THE LIQUEFIED PETROLEUM GAS (LPG) INDUSTRY, 
DELINEATING THE POWERS AND FUNCTIONS OF VARIOUS GOVERNMENT 
AGENCIES, DEFINING AND PENALIZING CERTAIN ACTS, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
CHAPTER I 
GENERAL PROVISIONS 
1 
SECTION I. Short Title. This Act shall be known as the "LPG Industry 
2 
Regulation and Safety Act of 2015." 
3 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the state to 
4 
protect the interests of consumers, ensure their general welfare and to establish standards 
5 
of conduct for business and industry. 
6 
Towards this end, the state shall: 
7 
(a) Establish a regnlatory framework for the importation, refining, refilling, 
8 
transportation, distribution and marketing of liquefied petroleum gas (LPG), and the 
9 
manufacture, requalification, exchange, swapping or improvement of LPG cylinders; 
10 
(b) Establish standards of conduct and codes of practice for LPG businesses; and 
1 
",~-' 


1 
(c) Address quality and safety concerns and uphold the right of consumers to 
2 
freely choose the LPG brand they want to purchase. 
3 
The State shall also promote national awareness and education regarding the 
4 
quality and safety requirements for the proper use of LPG cylinders and ancillary 
5 
equipment to further consumer protection. 
6 
SEC. 3. Scope and Application. This act shall apply to the importation, refining, 
7 
refilling, transportation, distribution and marketing of LPG, the manufacture, 
8 
requalification, exchange, swapping or improvement of LPG cylinders and safe 
9 
operations of the LPG industry, which cover all activities and businesses related to LPG 
10 
products for household, commercial, industrial or automotive use (Auto-LPG) and 
11 
cylinders or containers for LPG. 
12 
SEC. 4. Definition of Terms. For the purposes of this Act, the following terms 
13 
are defined herein below: 
14 
(a) "Accreditation" shall refer to the formal recognition of competency given by 
15 
the Philippine Accreditation Bureau (PAB) of the Department of Trade and Industry 
16 
(DTl) that a re-qualifier of LPG cylinders has complied with the existing Philippine 
17 
National Standards (PNS) prescribing the General Requirements for the Competence of 
18 
Testing and Calibration Laboratories, the Method of Requalification of Steel Cylinders 
19 
for LPG and any other applicable PNS; 
20 
(b) "Alteration" - any act of converting, transforming or resizing of local or 
21 
imported LPG cylinder or container from its original size or design including, but not 
22 
limited to, replacement or removal of existing and embossed or stamped Registered brand 
23 
owner's markings, grinding, flattening, application of putty, replacement of collar, 
24 
revaluing, unauthorized repainting, replacement of foot rings, or re-labeling; 
25 
(c) "Ancillary Equipment" - equipment, parts and other devices and accessories 
26 
necessary and indispensable for the safe and proper operation of an LPG cylinder or 
27 
container such as, but not limited to, LPG cylinder or container valves, hoses and 
28 
regulators; 
2 


1 
(d) "Auto-LPG" - LPG intended to fuel, propel or otherwise provide power to 
2 
motor vehicles; 
3 
(e) "Auto-LPG Dispensing Station" - outlet, facility or business establishment 
4 
which retails Auto-LPG directly to individual end-users or to the motoring public; the 
5 
same may stand alone or be located within or operated with a liquefied petroleum product 
6 
(LPP) retail outlet. It shall be deemed a dealer or retail outlet for purposes of this Act; 
7 
(f) "Brand Owner" - a person owning the brand name, logo, color, mark or 
8 
distinction as registered with the Intellectual Property Office of the Philippines (IPOPH); 
9 
(g) "Bulk Consumer" - any person, whose regular use or consumption of LPG is 
10 
limited to its own use, and requires bulk storage of LPG at a volume as may be 
11 
detem1ined by the Depallment of Energy (DOE); 
12 
(h) "Bulk Supplier" - any person, who engages in the sale or distribution of LPG 
13 
in large quantities as may be determined by the DOE; 
14 
(i) "Canister or Cartridge" - any portable pressure vessel or container designed or 
15 
intended for LPG, with water capacity ofless than that of an LPG cylinder; 
16 
G) "Centralized LPG Distribution System" - a network of pipes or similar conduit 
17 
used for the conveyance of LPG from the piped LPG provider to consumers confined 
18 
within the same compound or establishment such as, but not limited to, shopping malls 
19 
and condominiums; 
20 
(k) "Cellification" - the written assurance given by the DTI that the LPG cylinder 
21 
has complied with the existing PNS or any other standards issued by the Bureau of 
22 
Product Standards (BPS) pursuant to Republic Act No. 4109, governing specifications 
23 
and requircments for the repair of steel cylinders for LPG; 
24 
(I) "Consumer" - any person, who purchases LPG for one's own consumption; 
25 
(m) "Container" - any portable pressure vessel for the storage of LPG of 
26 
automotive use; 
27 
(n) "Cross Filling" - the filling of LPG cylinders by a person, other than by the 
28 
brand owner; 
3 


1 
(0) "Cylinder Owner" - the owner of the cylinder as shown by the brand, mark, 
2 
trade name or business name embossed or engraved or otherwise permanently indicated 
3 
on the LPG cylinder in the manner prescribed by the DTI; 
4 
(p) "Dealer" - any person involved in the sale or trading of LPG in cylinders to 
5 
consumers and/or retail outlets; 
6 
(q) "Defective Cylinder" - damaged, unsafe and dilapidated LPG cylinders due to 
7 
corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other similar defects that 
8 
render the LPG cylinder unsafe, injurious or dangerous for distribution in accordance 
9 
with the guidelines set by the DTI, thus creating a substantial risk of injury to the public; 
10 
(r) "Hauler" - any person, involved in the distribution and delivery of LPG 
11 
cylinders from one place to another; 
12 
(s) "lmp0l1er" - any person engaged 111 the importation of LPG whether for 
13 
processing, sale or own use; 
14 
(t) "LPG" - liquefied petroleum gas, which consists of commercial propane gas or 
15 
commercial butane gas or a mixture of the two gases, with properties conforming to the 
16 
standards set forth in the existing PNS or any other standards prescribed by the BPS; 
17 
(u) "LPG Industry Participants" - persons, engaged in activities or businesses 
18 
related to: 
19 
(I) refining, manufacturing, importing, exporting, shipping, transporting, 
20 
hauling, 
storing, refilling, distributing, marketing and selling of LPG for 
21 
household, commercial or industrial, and automotive (auto-LPG) use; or 
22 
(2) manufacturing, importing, transporting, distributing and selling of LPG 
23 
cylinders and ancillary equipment including, but not limited to, LPG 
24 
cylinder or container and ancillary equipment manufacturers and 
25 
importers, re-qualifiers, repairers, scrapping centers, LPG cylinder or 
26 
container seal manufacturers and such other similar persons or entities; 
27 
(v) "Marketer" - any person, engaged in the sale of LPG, whether in bulk or retail 
28 
under its own brand name; 
4 


1 
(w) "Person" - an entity such as an individual or group of individuals 
2 
incorporated, registered or fonned under Philippine laws; 
3 
(x) "Philippine National Standards" or "PNS" - the standards promulgated by the 
4 
BPS of the DTI relating to product specifications, test methods, terminologies and 
5 
standardization procedures, gnidelines or practices; 
6 
(y) "Piped LPG Provider" - any person, engaged in the business of supplying or 
7 
distributing LPG to consumers through a Centralized LPG Distribution System, including 
8 
operators of central storage compounds for piped LPG or reticulated system facilities; 
9 
(z) "Qualified Serviceman" - an individual who has been trained, qualified and 
10 
certified by the Bureau of Fire Protection (BFP) or any deputized agency thereof, or to an 
11 
individual who has successfully completed an approved training course for LPG 
12 
servicemen in a training school duly recognized and accredited by the Philippine 
13 
government; 
14 
(aa) "Reiiller" - (1) a service provider authorized by an LPG cylinder owner to 
15 
refill LPG cylinders on the latter's behalf, or (2) any person who refills LPG into one's 
16 
own LPG cylinders; 
17 
(bb) "Refilling Plant" - any installation that is used for refilling LPG into 
18 
cylinders and has LPG bulk storage and refilling facilities thereof; 
19 
(cc) "Refiner" - any person, who refines LPG through distillation, conversion and 
20 
treatment of crude oil and other naturally occurring petroleum hydrocarbons; 
21 
(dd) "Re-qualification" - the method or procedure by which an LPG cylinder is 
22 
subjected to inspection and re-evaluation in accordance with the prescribed specifications 
23 
and any other standards prescribed governing the method of requalification of steel 
24 
cylinders for LPG to detennine its acceptability for continuous use and distribution and 
25 
subsequent repair or scrappage, where appropriate; 
26 
(ee) "Re-qualifier" - any person, duly accredited by the DTI pursuant to this Act 
27 
to engage in the business ofre-qualifying LPG cylinders; 
28 
(ff) "Repair" - the removal from and replacement of parts or attachments of LPG 
29 
cylinders or the perfonnance of any other necessary corrective and restorative measures 
5 


1 
pursuant to the PNS, to restore the fitness of LPG cylinders for refilling, distribution and 
2 
use; 
3 
(gg) "Repairer" - any person duly certified by the DTI to engage in the business of 
4 
repairing LPG cylinders; 
5 
(hh) "Retail Outlet" - any entity that sells LPG in cylinders directly to a consumer 
6 
in quantities as may be determined by the DOE; 
7 
(ii) "Reticulated System" - a means of supplying LPG through a pipeline network 
8 
from a centralized cylinder bank or bulk installation to multiple customers situated in a 
9 
common locality; 
10 
(jj) "Scrappage" - the destruction of defective LPG cylinders declared by a re-
11 
qualifier of the DTI to be unfit for use; 
12 
(kk) "Seal" - the protective cover placed on the valve of an LPG cylinder; and 
13 
(II) "Tare weight" - the net weight of the LPG cylinder excluding its contents as 
14 
engraved in the collar and painted in the body thereof and shall be expressed in kilograms 
15 
in accordance with the specifications as may be prescribed by the DTI. 
16 
17 
CHAPTER II 
18 
IMPLEMENTING AGENCIES 
19 
SEC. 5. Lead Agency. The DOE shall be the primary government agency 
20 
responsible for the implementation and enforcement of this Act unless otherwise stated. 
21 
The DOE shall regulate, supervise and monitor the LPG industry and persons and entities 
22 
engaged in any activity or business therein to ensure compliance with the national 
23 
product quality, environmental and worker safety and consumer welfare standards. 
24 
SEC. 6. Additional Powers and Functions o.fthe DOE. In addition to its powers 
25 
and functions under existing laws, the DOE shall have the following powers and 
26 
functions: 
27 
28 
(a) 
(b) 
Administer and supervise the enforcement and implementation of this Act; 
Implement safety standards prescribed by the DOE or set in the PNS 
29 
promulgated by the BPS for refilling plants, depots, storage areas, transportation facilities 
6 


1 
and other facilities or business premises of the owners thereof and retail outlets, and 
2 
exercise reasonable visitorial powers in order to inspect and evaluate whether such 
3 
refilling plants, depots, storage areas, transportation facilities and other facilities or 
4 
business premises and retail outlets comply with such safety standards. During such 
5 
inspection, the DOE may scrutinize the records of the concerned LPG industry 
6 
participants; 
7 
(c) 
Inspect LPG cylinders in circulation, whether filled or unfilled, which are 
8 
for distribution and sale to dealers, retail outlets and end-consumers to determine 
9 
confonnity with established quality and safety standards for LPG cylinders developed 
10 
and established by the BPS; 
11 
(d) 
Confiscate and impound immediately after the conduct of inspection or 
12 
investigation of substandard, defective, unsafe, injurious or dangerous LPG and LPG 
13 
cylinders, or those that are found in violation of the provisions of this Act or in 
14 
commission of any of the prohibited acts under this Act or do not conform to established 
15 
quality and safety standards for LPG cylinders developed and established by the BPS, as 
16 
well as underfilled and illegally refilled LPG cylinders as defined in this Act; 
17 
(e) 
Investigate, motu proprio or upon report of any person, possible 
18 
infractions of this Act by any person, initiate the necessary criminal or administrative 
19 
actions warranted under the circumstances, enforce administrative sanctions or penalties 
20 
as provided under this Act, and file the necessary complaints with the proper court or 
21 
government agency; 
22 
(f) 
Implement the Philippine LPG Cylinder Improvement Program as 
23 
provided in this Act; 
24 
(g) 
Direct LPG brand owners, to periodically submit cylinders for 
25 
requalification, and to secure proper proof of compliance therewith in accordance with 
26 
the requirements of the DTI; 
27 
(h) 
Issue and grant Licenses to Operate to qualified LPG industry participants 
28 
in accordance with the implementing rules and regulations to be issued by the DOE, and 
7 


1 
suspend or revoke the same, after due notice and hearing, for committing any of the 
2 
prohibited acts under Chapter X this Act; 
3 
(i) 
Issue closure or cease-and-desist orders, as the case may be, to any 
4 
concerned LPG industry participants found to have committed any of the prohibited acts 
5 
under Chapter X of this Act; 
6 
Impose and collect administrative fines against LPG industry participants 
7 
found to have committed any of the prohibited acts under Chapter X of this Act; 
8 
(k) 
Create and maintain a central database of LPG industry participants, and 
9 
an inventory of existing and projected LPG supply levels in the country subject to the 
10 
limitations set out in Section 26 of this Act, which shall be updated monthly on its own 
11 
initiative or through reports of LPG industry participants; 
12 
(I) 
Investigate and keep a record of incidents of injury or damage to person or 
13 
property, caused by or attributable to the improper production, refilling, storage, handling 
14 
or dispensing or use of LPG for purposes of prosecuting or filing the appropriate 
15 
administrative or criminal complaints against responsible persons; 
16 
(m) 
Investigate, prosecute, and impose penalties for dumping activities or 
17 
unauthorized filling of bulk tanks in refilling plants by bulk suppliers other than the 
18 
owner of tanks; 
19 
(n) 
Dispose LPG and LPG cylinders in accordance with the guidelines on 
20 
disposal of LPG or LPG cylinders promulgated by the DOE; 
21 
(0) 
Inspect and evaluate LPG cylinder seals and confiscate seals not 
22 
complying with standards and regulations including those in illegal possession or use; 
23 
and 
24 
(p) 
Exercise such other powers and functions as may be necessary or 
25 
incidental to attaining the objectives of this Act. 
26 
SEC. 7. Powers and FUllctions of the DTL The DTI shall have the following 
27 
exclusive powers and functions: 
28 
(a) Develop, formulate, promulgate, review and revise, as may be necessary, the 
29 
PNS for LPG, LPG cylinders and other ancillary equipment; 
8 


1 
(b) Inspect and evaluate LPG cylinders, whether manufactured locally or 
2 
imported, prior to any sale or distribution to LPG refiners or refilIers and certify to their 
3 
conformity to the PNS and their fitness for public and sale distribution; 
4 
(c) Inspect and evaluate ancillary equipment, whether manufactured locally or 
5 
imported, and certify to their conformity to PNS and their fitness for public sale and 
6 
distribution; and 
7 
(d) Grant accreditation and certification of conformity to PNS to re-qualifiers, 
8 
repairers, LPG cylinder manufacturers and other independent, competent, private persons 
9 
and entities that provide products and services involving LPG cylinders and revoke the 
10 
same, if warranted. 
11 
SEC. 8. Powers and Functions oftlte DILG. To help effectively implement the 
12 
provisions of this Act, the Department of Interior and Local Government (DILG) shall 
13 
have the following powers and functions: 
14 
(a) Coordinate with local government units (LGUs) and the Philippine National 
15 
Police (PNP), in close coordination with the DOE and DTI, for the orderly and effective 
16 
implementation of this Act and ofthe orders, rules and regulations and issuances pursuant 
17 
thereto; 
18 
(b) Coordinate and cooperate with the DOE and the DTI m the conduct of 
19 
infonnation dissemination to the LGUs and the PNP; and 
20 
(c) Extend all the necessary assistance to the DOE with respect to the enforcement 
21 
of measures to attain the objectives of this Act. 
22 
SEC. 9. Powers and Functions of LGUs. To help effectively implement the 
23 
provisions of this Act, the LGUs shall have the following powers and functions: 
24 
(a) Assist the DOE in providing an area for impounded LPG cylinders; and 
25 
(b) Immediately suspend or revoke the business penn it or license of an LPG 
26 
industry participant upon the issuance by the DOE of a notice of suspension or revocation 
27 
of the License to Operate of such LPG industry participant in accordance with Chapter III 
28 
of this Act. 
9 


1 
SEC. 10. Powers and Functions o.fthe PNP. The PNP shall, only upon request 
2 
of the DOE or the DTI, provide security to life and property during the conduct of 
3 
operations for the implementation of this Act, such as but not limited to, the confiscation 
4 
of LPG cylinders found in violation of the prohibited acts under Chapter X of this Act, 
5 
and during the transport of the confiscated LPG cylinders to the impounding area: 
6 
Provided, that the PNP shall not, by itself, conduct LPG inspections without request from 
7 
the DOE and DTI, nor confiscate LPG cylinders unless duly authorized by a warrant 
8 
issued by the courts. 
9 
SEC. 11. LPG Monitoring and Enforcement Task Force. 
10 
(a) No later than six (6) months from the effectivity of this Act, the DOE shall 
11 
establish the LPG Monitoring and Enforcement Task Force with the following members: 
12 
(I) The Secretary of the DOE as Chairman; 
13 
(2) The Secretary of the DILG and Secretary ofDTI as members; 
14 
(3) Such other representatives of other government agencies as may be 
15 
detennined to be appropriate by the Chainnan; 
16 
(4) Representatives from LPG industry participants as may be detennined 
17 
to be appropriate by the Chainnan; and 
18 
(5) Such other representatives from the private-sector entities as may be 
19 
determined to be appropriate by the Chainnan. 
20 
(b) The LPG Monitoring and Enforcement Task Force shall have the following 
21 
powers and functions: 
22 
(I) Assist the DOE in monitoring and compliance standards inspection as 
23 
provided in this Act; and 
24 
(2) Exercise such other powers and functions necessary to give force and 
25 
effect to this Act, its implementing rules and regulations, and such other 
26 
rules issued by the DOE from time to time, as may be detennined by the 
27 
DOE in consultation with the LPG industry participants. 
28 
(c) Prior to the creation of the LPG Monitoring and Enforcement Task Force or 
29 
whenever the DOE deems necessary, the DOE may deputize such other government 
10 


1 
agencies it deems necessary to assist in the effective discharge of its functions provided 
2 
in this Act. 
3 
CHAPTER III 
4 
LICENSES, PERMITS AND OTHER BUSINESS REQUIREMENTS 
5 
SEC.12. License to Operate. 
6 
(a) Any person intending to engage in any activity or business involving LPG 
7 
shall secure a License to Operate prior to commencement of construction and commercial 
8 
operations. The DOE shall have the exclusive authority to issue the License to Operate. It 
9 
shall be valid for a period of three (3) years or any such period as may be determined by 
10 
the DOE. For purposes of this Act, the License to Operate shall certify that such person 
11 
or entity has complied with all the documentary requirements and safety rules and 
12 
regulations prescribed by the DOE and other pertinent government agencies. 
13 
(b) No person or entity intending to engage in any activity or business involving 
14 
LPG shall engage in business without first having duly secured a License to Operate from 
15 
the DOE. Any such person or entity that subsequently engages in an activity or business 
16 
outside of the scope of its License to Operate shall duly notify the DOE and secure the 
17 
proper License to Operate from and where deemed necessary by the DOE for such new 
18 
activity or business. 
19 
(c) The DOE shall prescribe specific guidelines for compliance of retail outlets, 
20 
dealers and haulers in remote areas outside Metro Manila. 
21 
(d) An LPG industry participant who has a License to Operate shall transact 
22 
business only with an LPG industry participant who likewise has a License to Operate. 
23 
(e) Subject to the provisions of this Act, any person already legally engaged in 
24 
any activity or business involving LPG shall obtain a License to Operate within six (6) 
25 
months from effectivity of this Act in accordance with the rules, regulations, and 
26 
guidelines to be issued by the DOE. 
27 
SEC. 13. Certificate of Non-Coverage (CNC). Any person or entity whose 
28 
principal business requires consumption of LPG in bulk and which business operation 
29 
does not include, in any way, the distribution or retail of LPG to consumers, such as but 
11 


1 
not limited to garage-based Auto-LPG stations, centralized LPG distribution systems, 
2 
shall secure a CNC from the DOE. 
3 
For purposes of this Act, a Garage-Based Auto-LPG operation shall refer to the 
4 
operation of a motor vehicle fleet with a number of vehicle units as may be determined 
5 
by the DOE and which vehicle units are parked and serviced in a confined area or garage. 
6 
The DOE shall prescribe such other conditions in order that an Auto-LPG dispensing 
7 
activity shall be deemed as a garage-based operation. 
8 
Bulk suppliers shall ensure that their bulk consumers have secured the necessary 
9 
CNC prior to entering into any supply contract or agreement with said bulk consumers. 
10 
A copy of such contract or a swom certification shall be submitted to the DOE 
11 
within thirty (30) days from the execution thereof. 
12 
The CNC does not in any way preclude compliance with applicable PNS, 
13 
requirements of the BFP and other concemed govemment agencies. 
14 
SEC. 14. Suspellsion or Revocation of License to Operate. The DOE shall 
15 
likewise have the power to suspend or revoke, after due notice and hearing, the License 
16 
to Operate of any person engaged in any activity or business involving LPG for the 
17 
commission of any of the prohibited acts under Chapter X of this Act. 
18 
SEC. 15. Mandatory Requirement Prior to LGU's Issuance or Renewal of 
19 
Local Government Business License or Mayor's Permit. The License to Operate 
20 
provided under Section 12 of this Act shall be a mandatory requirement for the grant or 
21 
renewal of any LGU business license or Mayor's permit to engage in business involving 
22 
LPG regardless of whether such products or activities constitute the entire or a portion of 
23 
the business for which a business license is sought by the applicant. 
24 
SEC. 16. Action of LGUs on Su.~pended or Revoked License to Operate. Upon 
25 
receipt of written notice by the DOE of suspension or revocation of the License to 
26 
Operate of a concemed LPG industry participant, the LGU shall immediately suspend or 
27 
revoke the LGU business license or Mayor's pennit of said LPG industry participant. The 
28 
LGU shall fonnally communicate to the DOE the fact of such suspension or revocation 
12 


1 
within five (5) working days from receipt of the written notice of revocation of License to 
2 
Operate from the DOE. 
3 
SEC. 17. Certificate of Accreditation for Manufacturers. Requalifier5, 
4 
Repairers of LPG Cylinders and Manufacturers. Prior to the commencement of its 
5 
operations and annually thereafter, any person who intends to engage in the business of 
6 
manufacturing, re-qualifying, or repairing LPG cylinders, shall obtain a Certificate of 
7 
Accreditation from the DTI. 
8 
Any person already engaged in the business of re-qualification, repair, scrappage 
9 
of LPG cylinder and seal manufacturing upon the effectivity of this Act shall apply for a 
10 
Certificate of Accreditation from the DTI. 
11 
CHAPTER IV 
12 
AUTO-LPG 
13 
SEC. 18. Retailing of Auto-LPG. Any person who is operating or intending to 
14 
operate an Auto-LPG Dispensing Station shall comply with the requirements as may be 
15 
provided in the implementing rules and regulations of this Act. 
16 
CHAPTER V 
17 
OWNERSHIP OF LPG CYLINDERS AND CONTAINERS 
18 
FOR AUTOMOTIVE USE 
19 
SEC. 19. Ownership of LPG Cylinders. The LPG brand owner whose permanent 
20 
mark appears on the LPG cylinder shall be presumed the owner thereof, irrespective of 
21 
the party in custody or possession of the LPG cylinder. Pennanent marks refer to the 
22 
embossed trade or brand name of the registered owner thereof as prescribed by the DTI 
23 
for LPG cylinders. 
24 
The rights and obligations of LPG brand owners shall be provided in the 
25 
implementing rules and regulations of this Act. The LPG brand owner shall have the 
26 
obligation to ensure that its LPG cylinders comply with all the required quality and safety 
27 
standards and specifications before they are released for distribution: Provided, that 
28 
receipt by the DOE of a verified notice or report from the LPG brand owner regarding 
29 
any lost, stolen or missing LPG cylinders shall prima facie relieve the LPG brand owner 
13 


1 
of the obligation to ensure the quality and safety of such LPG cylinders. Such report may 
2 
be rebutted by contrary evidence. 
3 
SEC. 20. Ownership of LPG Containers for Automotive Use. Containers of LPG 
4 
for automotive use are pennanently installed inside the vehicles and are therefore 
5 
inherent and integral parts of the vehicle. As such, ownership of these containers is that 
6 
of the vehicle owner. 
7 
CHAPTER VI 
8 
MONITORING AND ENFORCEMENT MECHANISMS 
9 
SEC. 21. Reports and Disclosures to the DOE. Subject to the limitations in 
10 
Section 22 below, the DOE, as the case may be, shall have the power and authority to 
11 
require concerned LPG industry participants to submit written, electronic or other form of 
12 
reports or disclosures, as the DOE may deem reasonable and necessary to perform its 
13 
functions under this Act. Any LPG industry participant who fails to submit any such 
14 
report or disclosure within the period and in the manner prescribed by the DOE shall be 
15 
penalized under Section 31 of this Act. 
16 
SEC. 22. CeJltral Database of LPG Industry Participants. The DOE shaH, within 
17 
one (l) year from the effectivity of this Act, create the central database. The central 
18 
database shall be updated on a monthly basis. The central database of LPG industry 
19 
participants shall include their corporate or business name or trade name; a list of all 
20 
directors and officers; principal office or business address; primary purpose or nature of 
21 
business; registered brand name or logo for LPG, LPG cylinder, facilities and equipment; 
22 
violations committed or incidents relating to such violations, if any; nature of agreements 
23 
with other LPG industry participants, such as for cross- filling and similar arrangements; 
24 
list of lost, stolen or missing LPG cylinders; and such other relevant information as may 
25 
be detennined by the DOE. 
26 
The foregoing provisions notwithstanding, the right of concerned LPG industry 
27 
patiicipants against undue disclosure of information is expressly recognized, and as such: 
14 


1 
(a) 
The DOE may not reqUire from the LPG industry participants the 
2 
disclosure of intellectual property rights, trade secrets and proprietary data or other 
3 
legitimate commercial infonnation which are confidential or privileged in nature; 
4 
(b) 
Any infonnation, documents, plans and other matters disclosed necessary 
5 
for ensuring the safe operations of the LPG industry which constitute intellectual 
6 
property, trade secrets or proprietary data or other legitimate commercial infonnation 
7 
which are confidential and/or privileged in nature, shall not be disclosed by the DOE or 
8 
any other person having access thereto to other LPG industry participants or to the public; 
9 
and 
10 
(c) 
The provisions of Republic Act No. 8293, otherwise known as the 
11 
"Intellectual Property Code of the Philippines," and other laws insofar as applicable shall 
12 
continue to apply to infonnation, documents, plans and other matters disclosed pursuant 
13 
to this Act. 
14 
15 
CHAPTER VII 
16 
DECLARATION OF LPG CYLINDER AS DEFECTIVE, INJURIOUS, UNSAFE 
17 
OR DANGEROUS 
18 
SEC. 23. Declaration of LPG Cylinder as Defective, Injurious, Unsafe or 
19 
Dangerous. When the DOE or DTl, as the case may be, finds, motu proprio or upon 
20 
petition of any person, that an LPG cylinder is defective, injurious, unsafe or dangerous, 
21 
it shall, after due notice, issue the appropriate order for its immediate confiscation, recall, 
22 
seizure, impoundment or prohibition from public sale or distribution, in which case the 
23 
LPG cylinder owner shall be afforded a hearing within forty-eight (48) hours from 
24 
issuance of such order, for the purpose of detennining the propriety of the recall and 
25 
seizure of the LPG cylinders: Provided, that such a declaration shall be limited to 
26 
instances when the LPG cylinder is already filled and already sealed inside a refilling 
27 
plant, dealer's showroom, retail outlets, or LPG cylinder transporter: Provided, further, 
28 
that the DOE or DTI shall, within thirty (30) days from tennination of administrative 
15 


1 
proceedings, make a final determination as to whether or not an LPG cylinder IS 
2 
defective, injurious, unsafe or dangerous. 
3 
Filled LPG cylinders that are found by the DOE or DTI to pose an imminent 
4 
threat or danger of exploding shall be disposed of without the necessity of serving prior 
5 
notice to the owners thereof. The DOE or DTI shall notify the violator, owner or 
6 
respondent of such fact within five (5) days after such disposition. 
7 
SEC. 24. LPG in Canisters or Cartridges. It shall be unlawful for any person to 
8 
refill, sell, trade or distribute LPG in single-trip tin canister or cartridge that is intended or 
9 
labeled as for one time use only, not designed or intended for LPG, or not in compliance 
10 
with existing PNS. 
11 
CHAPTER VIII 
12 
TRANSPORT OF LPG IN CYLINDERS 
13 
SEC. 25. Transport of LPG in Cylinders. The DOE, together with other 
14 
government agencies, shaH issue appropriate guidelines for the transport of LPG in 
15 
cylinders. The LPG industry participant shall not aHow any vehicle used for the transport 
16 
of LPG in cylinders to enter its premises, including refilling plants, depot or warehouses, 
17 
unless such vehicle has complied with the requirements of the DOE for the transport of 
18 
LPG in cylinders. For the transport of LPG in cylinders to households, the LPG industry 
19 
participants shall only use vehicles that meet the requirements prescribed by the DOE, as 
20 
well as those of the Department of Transportation and Communication (DOTC), 
21 
Department of Public Works and Highways (DPWH) and the concerned LGUs. As proof 
22 
of compliance, the Certificate of Road Worthiness from the Land Transportation Office 
23 
(LTO) or the Land Transportation Franchising and Regulatory Board (L TFRB) shaH be 
24 
presented as additional documentary requirement for the issuance and renewal of a 
25 
License to Operate. 
26 
Vehicles carrying, transporting or delivering LPG and which are not registered 
27 
and without the appropriate DOE signage shall be seized or impounded by the DOE. The 
28 
guidelines for the accreditation of drivers and attendants for LPG delivery vehicles shaH 
16 


1 
be prescribed by the DOE upon prior consultation with the LPG industry participants and 
2 
other government agencies concerned. 
3 
CHAPTER IX 
4 
PHILIPPINE LPG CYLINDER IMPROVEMENT PROGRAM 
5 
SEC. 26. Philippine LPG Cylinder Improvement. A Philippine LPG Cylinder 
6 
Improvement Program shall be implemented with the objective of safeguarding and 
7 
ensuring the safety of consumers. The DOE shall, upon prior consultation with the LPG 
8 
industry participants and other concerned government agencies, detennine the mechanics, 
9 
rules and regulations for the Philippine LPG Cylinder Improvement Program. 
10 
11 
CHAPTER X 
12 
PROHIBITED ACTS, FINES AND PENALTIES 
13 
SEC. 27. Engaging in Business Without License to Operate. Any LPG industry 
14 
participant who engages in business without securing a License to Operate from the DOE 
15 
as required under this Act shall be penalized with a fine of Five Thousand Pesos 
16 
(Php5,000.00) for each day of operation without a License to Operate: Provided, that the 
17 
maximum fine to be imposed shall be Five Hundred Thousand Pesos (Php500,000.00) for 
18 
an individual and One Million Pesos (Php 1,000,000.00) for a corporation. 
19 
SEC. 28. Engaging in Business Without Accreditation. Any person who engages 
20 
in the business of manufacturing LPG cylinder seals or of re-qualifying, repairing or 
21 
scrapping LPG cylinders without first securing a certificate of accreditation from the DTI 
22 
as provided under this Act, shall be penalized with a fine of One Million Pesos 
23 
(Phpl,OOO,OOO.OO). 
24 
SEC. 29. Refusal or Obstruction of Impection. Any LPG industry participant 
25 
who refuses, prevents or obstructs the inspection of its premises and records as required 
26 
under this Act shall be penalized with a fine of Three Hundred Thousand Pesos 
27 
(Php300,000.00) for the first violation, Five Hundred Thousand Pesos (Php500,000.00) 
28 
for the second violation and revocation of the License to Operate for the third violation. 
17 


1 
SEC. 30. Failure to Post License to Operate. Any LPG industry participant 
2 
concerned who fails or refuses to post its License to Operate shall be penalized with a 
3 
fine of not exceeding Five Thousand Pesos (Php5,000.00) for each instance of violation. 
4 
SEC. 31. Failure to Submit Reportorial Requirements. Any LPG industry 
5 
participant concerned who fails to submit periodic reports as may be required under 
6 
existing laws particularly Republic Act No. 8479, otherwise known as "Downstream Oil 
7 
Industry Deregulation Act of 1998,", within a reasonable period and in the manner 
8 
prescribed by the DOE, shall be penalized with a fine of Ten Thousand Pesos (Php 
9 
10,000.00) in case of an individual and Twenty Thousand Pesos (Php20,000.00) in case 
10 
of a partnership or corporation. 
11 
SEC. 32. Illegal Storage. Any refiner, importer, refiller, hauler, dealer, retail 
12 
outlet or bulk consumer who stores LPG in bulk without obtaining a License to Operate 
13 
or Certificate of Non-Coverage as required under this Act shall, upon conviction, be 
14 
penalized with a fine of not less than Twenty Thousand Pesos (Php20,000.00) but not 
15 
more than One Hundred Thousand Pesos (Php I 00,000.00). 
16 
SEC. 33. Failure to Comply with Product Standards. Any coneerned LPG 
17 
industry participant who, by act or omission, fails to comply with plant or product 
18 
standards set by the DOE with respect to their specific activity shall, upon conviction, be 
19 
penalized as follows: 
20 
(a) Non-compliance with DOE mandatory requirements on safety designs for 
21 
refilling plants, equipment, depots, centralized LPG distribution systems and similar 
22 
facilities shall be penalized with a fine of not less than Fifty Thousand Pesos 
23 
(Php50,000.00) but not more than Five Hundred Thousand Pesos (Php500,000.00). For 
24 
this purpose, the DOE shall, after public consultation, formulate a table of penalties to 
25 
detennine the imposition of the minimum and the maximum penalty. Provided, that 
26 
nothing in this paragraph shall preclude the DOE from ordering the closure of the facility 
27 
until such time that the mandatory requirements have been met; and 
28 
(b) Failure to secure the required PNS Certificate for LPG cylinders shall be 
29 
penalized with a fine of Five Thousand Pesos (Php5,000.00) for each non-compliant LPG 
18 


1 
cylinder used and distributed to consumers: Provided, that the maximum fine to be 
2 
imposed shall be Five Hundred Thousand Pesos (Php500,000.00) for an individual and 
3 
One Million Pesos (Phpl,OOO,OOO.OO) for a corporation: Provided, jilf'ther, that this 
4 
section shall apply only after the full implementation of the Philippine LPG Cylinder 
5 
Improvement Program. 
6 
SEC. 34. Adulteration. LPG-filled cylinders found to be mixed with another 
7 
finished or unfinished petroleum product or stock or with any non-petroleum substance or 
8 
material that will result in product quality change or in the failure of the LPG to meet the 
9 
required product specifications of the DOE shall render the person in possession thereof 
10 
prima facie liable for violating this provision and shall, npon conviction, be penalized 
11 
with a fine of Five Thousand Pesos (Php5,000.OO) for each LPG cylinder containing 
12 
adulterated LPG: Provided, that the maximum fine to be imposed shall be Five Hundred 
13 
Thousand Pesos (Php500,000.OO) for an individual and One Million Pesos 
14 
(Phpl,OOO,OOO.OO) for a corporation. 
15 
SEC. 35. Underjilling. When the net quantity of LPG contained in LPG cylinders 
16 
intentionally sold, transferred, delivered or filled by refillers is less than the LPG cylinder 
17 
content required by the DOE at the filling plant, the refiller shall, upon conviction, be 
18 
penalized with a fine of Five Thousand Pesos (Php5,000.00) for each underfilled LPG 
19 
cylinder or with imprisonment of at least six (6) months but not more than two (2) years, 
20 
or both, at the discretion of the court: Provided, that subsequent violations shall be 
21 
penalized with both fine and imprisonment: Provided, further, that the maximum fine to 
22 
be imposed shall be Five Hundred Thousand Pesos (Php500,000.00) for an individual and 
23 
One Million Pesos (Php 1,000,000.00) for a corporation. When the net quantity of LPG in 
24 
cylinders intentionally sold, transferred, or delivered by dealers or retail outlets is at least 
25 
three tenths of one kilogram (0.30 kg) less than the DOE-required LPG cylinder content 
26 
quantity, the dealers or retail outlets shall be penalized with the same fines mentioned 
27 
earlier in this paragraph: Provided .. finally, that when the net quantity of LPG cylinders 
28 
sold, transferred or delivered by dealers or retail outlets is at least five hundred (500) 
29 
grams less than the DOE-required LPG cylinder content quantity, the said cylinders shall 
19 


1 
be confiscated outright and the refillers, dealers or retail outlets thereof shall be penalized 
2 
with the aforementioned penalties. 
3 
The following shall be considered as prima facie evidence of under filling: 
4 
(a) A broken, tampered, absent or removed seal; or 
5 
(b) An LPG cylinder containing less than the required LPG quantity which is not 
6 
so identified and set apart or taken out from the sales area by dealers or retail outlets is 
7 
presumed to be for sale. 
8 
SEC. 36. Illegal Refilling. The following shall constitute iIlegal refilling of LPG 
9 
cylinders under this Act: 
10 
(a) Refilling of LPG cylinder by a person or entity other than the brand owner 
11 
thereof, unless an express permission is granted by the brand owner for such refilling as 
12 
evidenced by a written contract or similar instrument; 
13 
(b) Refilling of LPG cylinder with a brand, trademark, trade name or registered 
14 
business name other than that of the brand owner indicated on the LPG cylinder tank, 
15 
otherwise called "pirate filling" or "cross-filling"; 
16 
(c) Refilling of LPG cylinder bearing defaced, tampered or iIlegible markings 
17 
contrary to the mandatory labelling and stamping requirements under this Act; 
18 
(d) Refilling of LPG cylinder which is due for repair, re-qualification or 
19 
scrappage as provided in this Act or is subject to the recall or prohibition order of the 
20 
DOE; 
21 
(e) Filling of LPG cylinder directly from LPG tank trucks without the use of 
22 
approved filling machines; 
23 
(f) Refilling LPG from one LPG cylinder to another without using the prescribed 
24 
equipment; 
25 
(g) Backyard refilling of LPG cylinder other than in properly designed LPG 
26 
refilling plants; 
27 
(h) Filling LPG cylinder with products or substances other than LPG in an effort 
28 
to achieve the correct net weight; 
20 


1 
(i) Refilling of LPG cylinders for household or commercial use by Auto-LPG 
2 
Dispensing Stations; 
3 
(j) Refilling of LPG into single-trip or tin canister or cartlidge not designed or 
4 
intended for LPG or not in compliance with existing PNS or, in the absence of a PNS, 
5 
without the express consent, approval or conformity of the DTI; 
6 
(k) Any other refilling of LPG cylinders in violation of the mandatory 
7 
requirements or prescribed standards under this Act; and 
8 
(I) Unauthorized loading of bulk LPG tanks in industrial accounts. 
9 
An LPG industry participant found guilty of illegal refilling under this section 
10 
shall, upon conviction, be penalized with a fine of Five Thousand Pesos (Php5,OOO.OO) 
11 
for each illegally-filled or refilled LPG cylinder, or imprisonment of at least six (6) 
12 
months but not more than two (2) years, or both, at the discretion of the court: Provided, 
13 
that subsequent violations shall be penalized with both fine and imprisonment: Provided, 
14 
jilr/her, that the maximum fine to be imposed shall be Five Hundred Thousand Pesos 
15 
(Php500,OOO.OO) for an individual and One Million Pesos (Phpl,OOO,OOO.OO) for a 
16 
corporation: Provided, finally, that illegally refilled LPG cylinders described in sub-
17 
paragraphs (c), (d), (e), (t), (g), (h) and (i) above shall be confiscated outright and the 
18 
refillers, dealers or retail outlets thereof shall be penalized with the aforementioned 
19 
penalties. 
20 
SEC. 37. Hoarding. Any concerned LPG industry participant who, before a price 
21 
increase or in times of tight supply, unduly accumulates LPG products beyond his normal 
22 
inventory levels and unreasonably limits or refuses to dispose of, sell, or distribute LPG 
23 
products to the general public, even ifthe buyer or consumer has the ability to pay in cash 
24 
for the LPG products, shall, upon conviction, be penalized with a fine of at least One 
25 
Hundred Thousand Pesos (PhpIOO,OOO.OO) but not more than One Million Pesos 
26 
(Phpl,OOO,OOO.OO) and imprisonment of at least six (6) months but not more than two (2) 
27 
years. 
28 
The determination of said participant's usual inventory shaH be reckoned from the 
29 
third (yd) month immediately preceding the discovery of the stocks in case said 
21 


1 
participant has been engaged in the business for at least three (3) months. Otherwise, it 
2 
shall be reckoned from the time the participant started the business. 
3 
For purposes of this Act, it shall be considered as prima facie evidence of hoarding when 
4 
the following conditions concur: 
5 
(a) said LPG industry participant has stocks of LPG products fifty percent (50%) 
6 
higher than his inventory capacity; and 
7 
(b) said LPG industry participant unreasonably limits, refuses or fails to sell the 
8 
same to the general public at the time of discovery of the stocks. 
9 
SEC. 38. Ullauthorized Tradillg of LPG Cylillders. Any concerned LPG industry 
10 
participant who, without the consent of the LPG brand owner, stores or sells empty LPG 
11 
cylinders in excess of those allowed by the DOE, through LPG cylinder swapping and 
12 
other similar industry practices and exchanges, barters, se1!s, distributes or otherwise 
13 
transfers ownership or possession thereof to a person or entity other than the LPG brand 
14 
owner and without the authority of the LPG brand owner, shall, upon conviction, be 
15 
penalized with a fine of Five Thousand Pesos (Php5,000.00) for each illegally-stored or 
16 
sold empty LPG cylinder or imprisonment of at least six (6) months but not more than 
17 
two (2) years, or both, at the discretion of the court: Provided, that subsequent violations 
18 
shall be penalized with both fine and imprisonment: Provided, jitrther, that the maximum 
19 
fine to be imposed shall be Five Hundred Thousand Pesos (Php500,000.00) in case of an 
20 
individual and One Million Pesos (Phpl,OOO,OOO.OO) in case of a corporation. 
21 
SEC. 39. Tamperillg of LPG Cylillders alld Similar Acts. Any person who 
22 
destroys, tampers, alters or modifies LPG cylinders through any means such as, but not 
23 
limited to, changing the LPG cylinder valve, repainting and re-labelling, by any person 
24 
other than the LPG cylinder owner shall, upon conviction, be penalized with a fine of 
25 
Five Thousand Pesos (Php5,000.00) for each tampered or altered LPG cylinder or 
26 
imprisonment of at least six (6) months but not more than two (2) years, or both, at the 
27 
discretion of the court: Provided, that subsequent violations shall be penalized with both 
28 
fine and imprisonment: Provided, further, that the maximum line to be imposed shall be 
22 


1 
Five Hundred Thousand Pesos (Php500,OOO.OO) for an individual and One Million Pesos 
2 
(Phpl,OOO,OOO.OO) for a corporation. 
3 
SEC. 40. Illegal Possession of LPG Cylinder Seal. Any person found in 
4 
possession of LPG cylinder seals, including the seals already used in the LPG cylinders 
5 
without authority from the LPG cylinder owner or its authorized refiller shall, upon 
6 
conviction, be penalized with a fine of Five Thousand Pesos (Php5,OOO.OO) for each LPG 
7 
seal found in its or his possession: Provided. that the maximum fine to be imposed shall 
8 
be Five Hundred Thousand Pesos (Php500,OOO.OO) for an individual and One Million 
9 
Pesos (Phpl,OOO,OOO.OO) for a corporation. 
10 
SEC. 41. Failure to Comply with Weighing Device Requirements. Any refiner, 
11 
importer, refiller, dealer or retail outlet who fails to comply with the requirements 
12 
pertaining to weighing devices as required by the DOE and DTI, shall be penalized with a 
13 
fine ofTen Thousand Pesos (PhpIO,OOO.OO) in case of an individual or Twenty Thousand 
14 
Pesos (Php20,OOO.OO) in case of a corporation. 
15 
SEC. 42. Overloading. Any hauler who loads and transports or permits the 
16 
loading and transportation of LPG cylinders in quantities greater than the rated capacity 
17 
of the vehicle or in such a manner that endangers the life and safety of its passengers or 
18 
the public, shall be penalized with a fine of Twenty Thousand Pesos (Php20,OOO.OO) in 
19 
case of an individual and Fifty Thousand Pesos (Php50,OOO.OO) in case of a corporation: 
20 
Provided. that the penalties provided herein shall be without prejudice to its liability 
21 
under other laws for any damage or injury to person or property. 
22 
SEC. 43. Importation of Used or Second-Halld LPG Cylinders. Any person who 
23 
imports used or second-hand LPG cylinders or containers, without securing authority to 
24 
import from the DTI, shall, upon conviction, be penalized with a fine of One Hundred 
25 
Thousand Pesos 
(PhpIOO,OOO.OO) or Five Thousand Pesos (Php5,OOO.OO) per LPG 
26 
cylinder or container whichever is higher and imprisonment of at least six (6) months and 
27 
one (I) day to two (2) years. 
28 
SEC. 44. Sale or Distribution to NOIl-complyillg Persolls or Elltities. Any LPG 
29 
industry participant who knowingly sells or distributes LPG products, LPG cylinders or 
23 


1 
LPG seals to persons or entities committing any of the prohibited acts provided in this 
2 
Act and in such other issuances or orders to be issued by the DOE or the DTI as the case 
3 
may be, shall upon conviction, be penalized for each sale or distribution with a fine of not 
4 
less than One Hundred Thousand Pesos (PhplOO,OOO.OO) but not more than Five Hundred 
5 
Thousand Pesos (Php500,OOO.OO) or imprisonment of at least six (6) months but not more 
6 
than two (2) years, or both at the discretion of the court. 
7 
SEC. 45. Pi(ferage of LPG. Any person who pilfers LPG shall, upon conviction, 
8 
be penalized with a fine of Five Hundred Thousand Pesos (Php500,OOO.OO) for an 
9 
individual and One Million Pesos (Phpl,OOO,OOO.OO) for a corporation or imprisonment of 
10 
at least six (6) months but not more than two (2) years, or both, at the discretion of the 
11 
court: Provided, that subsequent violations shall be penalized with both fine and 
12 
imprisonment: Provided, fitrther, that the maximum fine to be imposed shall be Five 
13 
Hundred Thousand Pesos (Php500,OOO.OO) for an individual and One Million Pesos 
14 
(Phpl,OOO,OOO.OO) for a corporation. 
15 
SEC. 46. Sale 0/' Distribution of LPG-filled Cylinders Without Seals. Any 
16 
person, brand owner, its authorized refiller, dealer or retail outlet who sells or distributes 
17 
LPG-filled cylinders without seal, with tampered, fake or broken seals, or with seal not 
18 
belonging to the brand owner shall be penalized with a fine of not less than Five 
19 
Thousand Pesos (Php5,OOO.OO) for each LPG cylinder or imprisonment of at least six (6) 
20 
months but not more than two (2) years, or both, at the discretion of the court: Provided, 
21 
That the maximum line to be imposed shall be Five Hundred Thousand Pesos 
22 
(Php500,OOO.OO) for an individual and One Million Pesos (Phpl,OOO,OOO.OO) for a 
23 
partnership or corporation. 
24 
SEC. 47. Refusal to Refund the Deposit. Any LPG brand owner, its authorized 
25 
dealer or retail outlet that refuses to refund the deposit on the LPG cylinder to any 
26 
consumer shall be administratively charged and upon proper proof, shall be imposed a 
27 
fine of One Thousand Five Hundred Pesos (Phpl,500.00) for each LPG cylinder and a 
28 
warning that its License to Operate shall be suspended or revoked: Provided, that 
29 
subsequent violations thereof shall be imposed a fine of Five Thousand Pesos 
24 


1 
(Php5,OOO.OO) per LPG cylinder and the suspension and revocation of its License to 
2 
Operate. 
3 
SEC. 48. Sale of LPG ill Sillgle-trip (Iloll-refillable) COlltailler or Callister. 
4 
Any person who sells or distributes LPG in single-trip (non-refillable) containers or 
5 
canisters which have been previously filled with butane, or not designed or intended for 
6 
refillling of LPG due to non-compliance with PNS or not certified or allowed by the DTI 
7 
shall be penalized with a fine of not less than Five Thousand Pesos (Php5,OOO.OO) for 
8 
each LPG cylinder or imprisonment or at least six (6) months but not more than two (2) 
9 
years, or both, at the discretion of the court: Provided. That the maximum fine to be 
10 
imposed shall be Five Hundred Thousand Pesos (Php500,OOO.OO) for an individual and 
11 
One Million Pesos (Phpl,OOO,OOO.OO) for a partnership or corporation. 
12 
SEC. 49. Other Prohibited Acts. The following acts shaH likewise be declared 
13 
unlawful: 
14 
(a) Sale and distribution to or transactions with an LPG industry participant who 
15 
has no License to Operate; 
16 
(b) Manufacture, sale or distribution of LPG cylinders to the local market without 
17 
the necessary PS marks and other markings as required by the PNS and its future 
18 
amendments or the 
detailed standard governing LPG 
cylinder manufacture, 
19 
requalification and repair; 
20 
(c) Sale and distribution of LPG cylinders considered substandard as defined by 
21 
the PNS; 
22 
(d) Manufacture or sale of LPG cylinders carrying a brand name, logo, mark or 
23 
distinction without the express approval of the registered brand owner; 
24 
(e) Manufacture of LPG cylinders using substandard or non-industrial steel plates; 
25 
(f) Wrong or misleading information stamped on the LPG cylinder such as the 
26 
tare weight; and 
27 
(g) Knowingly selling illegally-filled or refilled LPG cylinders by marketers, 
28 
dealers or retail outlets; 
2S 


1 
A fine of at least Five Hundred Thousand Pesos (Php500,000.00) but not more 
2 
than One Million Pesos (Phpl,OOO,OOO.OO) and imprisonment of at least six (6) years and 
3 
one (I) day to twelve (12) years shall be imposed on any person, firm, partnership or 
4 
corporation found guilty of committing any of the other prohibited acts enumerated 
5 
above. 
6 
SEC. 50. 
"Strike Three" Penalty. 
Any person convicted 
or found 
7 
administratively liable with finality of committing any prohibited act for three (3) 
8 
instances shall be perpetually disqualified from engaging in any activity in the LPG 
9 
industry. 
10 
SEC. 51. Publication of Persons Convicted of Violations of this Act. The DOE 
11 
shall, on a quarterly basis, publish in a newspaper of general circulation, the names of 
12 
LPG industry participants found liable for prohibited acts in Chapter X of this Act. 
13 
SEC. 52. Violations by Juridical Entities. If the violation is committed by a 
14 
corporation, partnership, association or other juridical entity, the penalty of imprisonment 
15 
shall be imposed on the responsible directors or officers thereof. Any new juridical entity 
16 
formed by persons (or agents of such persons) previously found in violation of the 
17 
prohibited acts under Chapter X of this Act shall not be eligible for any License to 
18 
Operate by the DOE. If the offender is an alien, he shall be deported immediately, 
19 
without further proceedings, after service of sentence. 
20 
CHAPTER XI 
21 
EDUCATION AND RESEARCH 
22 
SEC. 53. Usage Requirements for Customers and End-Users. The DOE and the 
23 
DTI shall jointly undertake educational and information dissemination activities to 
24 
enhance customer awareness among LPG consumers and end-users. In addition to such 
25 
educational program, the DOE and the DTI, after consultation with the LPG industry 
26 
participants, may prescribe rules and regulations in relation to the following: 
27 
28 
(a) 
(b) 
For industrial or large end-users, installation of sign at storage facilities; 
Use of only branded, legally-filled and certified LPG cylinders; and 
26 


1 
(c) 
Installation of LPG appliances and devices approved by the DTI: 
2 
Provided, that such appliances and devices shall be installed only by qualified 
3 
servicemen as provided in this Act. 
4 
SEC. 54. Development Research. The DOE shall, in coordination with the 
5 
Department of Science and Technology (DOST) and the DTI, conduct study and research 
6 
for the purpose of developing more efficient methods of providing safe, clean and hazard-
7 
free LPG to consumers. 
8 
CHAPTER XII 
9 
FINAL PROVISIONS 
10 
SEC. 55. Implementing Rules and Regulations. Unless otherwise expressly 
11 
provided in this Act, the DOE shall, in consultation with the DTI, other appropriate 
12 
agencies, and the LPG industry participants, be the lead agency to formulate, issue and 
13 
promulgate the necessary implementing rules and regulations within sixty (60) days from 
14 
the effectivity of this Act. The implementing rules and regulations shall cover, among 
15 
others, guidelines and standards for LPG weighing devices, cylinder sealing, labeling 
16 
requirements, quality standards, delivery vehicles, drivers, and attendants, and the 
17 
Philippine LPG Cylinder Improvement Pro~,'Tam. 
18 
SEC. 56. Transition Phase. The DOE shall, upon prior consultation with the LPG 
19 
industry participants and other government agencies and taking into account data 
20 
obtained from LPG industry participants and other sources, determine the appropriate 
21 
period for the transition phase to allow for compliance by all LPG industry participants 
22 
with the objectives of this Act. 
23 
SEC. 
57. 
Appropriations. 
The 
amount 
of 
Two 
Billion 
Pesos 
24 
(Php2,000,000,000.00) annually for the first five (5) years of the implementation of this 
25 
Act is hereby appropriated out of the Malampaya Fund being administered by the DOE. 
26 
Thereafter, the same shall be included in the regular budget of the DOE in such amounts 
27 
as may be necessary to fully implement the Philippine LPG Cylinder Improvement 
28 
Program. 
27 


1 
Appropriations herein shall be utilized by the DOE only for the purpose of 
2 
providing financial support and assistance to fund the implementation of the Philippine 
3 
LPG Cylinder Improvement Program and shall in no way unduly burden, financially or 
4 
otherwise, any LPG industry participant and or consumer. 
5 
Not more than Ten Percent (10%) ofthe amount herein appropriated shall be used 
6 
for administrative costs in implementing the Philippine LPG Cylinder Improvement 
7 
Program. 
8 
SEC. 58. Joint Congressional Oversight Committee. There is hereby created a 
9 
Joint Con!,1fessional Oversight Committee to monitor the implementation of this Act. The 
10 
committee shall be composed of three (3) senators and three (3) representatives to be 
11 
appointed by the Senate President and the Speaker of the House of Representatives, 
12 
respectively. The oversight committee sha1l be jointly chaired by the Chainnen of the 
13 
Senate Committees on Energy and Trade and Commerce and the House Committees on 
14 
Energy and Trade and Industry: Provided, that the Minority in both the Senate and the 
15 
House of Representatives shall be equitably represented therein. 
16 
The mandate given to the Joint Congressional Oversight Committee under this 
17 
Act shall be without prejudice to the perfonnance of the duties and functions by the 
18 
respective existing oversight committees of the Senate and the House of Representatives. 
19 
SEC. 59. Construction and Interpretation. Any doubt in the interpretation of any 
20 
provision in this Act shall be interpreted in favor of the interests of the consumers 
21 
particularly to ensure access to reasonably priced LPG and the safety of the consumers 
22 
and the general public. 
23 
SEC. 60. Separability Clause. If for any reason, any chapter, section or provision 
24 
of this Act shall be declared unconstitutional, illegal, or invalid, such parts not affected 
25 
thereby shall remain in full force and effect. 
26 
SEC. 61. Repealing Clause. All laws, decrees, executive orders, proclamations 
27 
and administrative regulations, or parts thereof inconsistent herewith are hereby repealed 
28 
or modified accordingly. 
28 


1 
SEC. 62. Effectivity Clause. This Act shall take effect after fifteen (15) days after 
2 
its publication in the Official Gazette or in at least two (2) newspapers of general 
. 3 
circulation. 
4 
Approved, 
29