SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
("'-10. 
Senate Bill No. ,J I 0 
'13 
JUL ··9 
1\ 9 :24 
INTRODUCED BY SEN. LOREN LEGARDA 
EXPLANATORY NOTE 
Liquefied petroleum gas (LPG) is a basic fuel commodity in Philippine 
households, with twelve million LPG cylinders in circulation nationwide. However, it is 
impo.rtant to note that many are said to be dilapidated, defective and unsafe. Therefore, 
there is a need to establish a more efficient and effective monitoring and supervisory 
framework that would ensure the safety of consumers as well as protect their general 
welfare. 
This framework that this measure seeks to establish is for the refining, 
importation, refilling, transportation, distribution, marketing and sale of LPG. It also 
seeks to formulate appropriate programs and standards for the importation, 
manufacture, sale, distribution, exchange, swapping, repair, requalification and 
rehabilitation of LPG cylinders and other ancillary equipment. 
This bill shall likewise give additional powers and functions to the Department 
of Trade and Industry (DTI), which is the lead agency tasked to monitor and supervise 
the compliance of the LGU industry and its participants with national product quality 
and safety, environmental and occupational safety, and consumer welfare standards. 
This measure also seeks to create the LPG Industry Monitoring and Inspection 
Committee, which shall formulate the specific guidelines for mandatory compliance 
with the established quality standards and enforce the appropriate sanctions for 
violations. 
In view of the foregoing, approval of this bill is earnestly sought. 
~~ 
LORffNLEGARDA 
Senator 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
'13 
JUL -9 
1\ 9 :24 
INTRODUCED BY SENATOR LOREN LEGARDA 
AN ACT TO ESTABLISH THE MONITORING AND SUPERVISORY 
FRAMEWORK FOR THE SAFE OPERATIONS OF THE LIQUEFIED 
PETROLEUM GAS (LPG) INDUSTRY; RATIONALIZE THE 
MANUFACTURE, SALE, DISTRIBUTION, EXCHANGE, SWAPPING, 
REPAIR, REQUALIFICATION AND REHABILITATION OF LPG 
CYLINDERS; PROVIDE ADDITIONAL POWERS TO THE DEPARTMENT I 
OF TRADE AND INDUSTRY; DEFINE AND PENALIZE VIOLATIONS 
THEREOF AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
I 
Section 1. Title. -This Act shall be known as the "LPG Industry Safety Act of 
2 
2013". 
3 
4 
Section 2. State Policy and Objectives. -It is the declared policy of the State 
5 
to Sh'ictly monitor and supervise the business and operations of the LPG industry in 
6 
order to ensure the safety of the consuming public and protect their general welfare. 
7 
Towards this end, the State shall establish a more efficient and effective monitoring 
8 
and supervisory framework for the refining, importation, refilling, transportation, 
9 
distribution, marketing and sale of LPG, and formulate appropriate programs and 
10 
standards for the importation, manufacture, sale, distribution, exchange, swapping, 
II 
repair, requalification and rehabilitation of LPG cylinders and other ancillary 
12 
equipment such as hoses and valves through the coordinated efforts of the 
13 
Department of Trade and Industry (DTI), other government agencies and the private 
14 
sector. The State shall also promote national awareness and education regarding the 
1 


• 
, 
quality and safety requirements for and the proper use of LPG cylinders and 
2 
ancillary equipment to further consumer protection. 
3 
4 
Section 3. Construction in Favor of Consumer. -
All doubts in the 
5 
implementation and interpretation of any provisions of this Act and its 
6 
implementing rules and regulations, including any existing circulars and other 
7 
issuances relative thereto, shall be resolved in favor of the safety of the consuming 
8 
public. 
9 
10 
Section 4. Definition of Terms. - For purposes of this Act, the term: 
11 
(a) Alteration refers to any act of converting, transforming or resizing of local 
12 
or imported LPG cylinders from its original size and replacement or removal of 
13 
existing and embossed or stamped registered brand owner's markings, including, 
14 
but not limited to grinding, flattening, application of putty, replacement of collar, 
.15 
revalving, unauthorized repainting, replacement of footrings, re-Iabeling, or by any 
16 
other means; 
17 
(b) Ancillary Equipmentrefers to such equipment, parts and other devices and 
18 
accessories indispensable and/ or necessary for the safe and proper operation of an 
19 
LPG cylinder'or container such as, but not limited to, LPG cylinder or container 
20 
valves, hoses and regulators; 
21 
(c) Auto-LPG shall refer to LPG intended to fuel, propel or otherwise provide 
22 
power to motor vehicles: 
23 
(d) BPS Accreditation refers to the certification that may be issued by the 
24 
Bureau of Product Standards (BPS) of the DTI stating due compliance by a 
25 
requalifier of LPG cylinders with the existing Philippine National Standards (PNS) 
26 
prescribing the General Requirements for the Competence of Testing and 
27 
Calibration Laboratories, the method of Requalification of Steel Cylinders for LPG 
28 
and any other standards prescribed by the BPS; 
29 
(e) BPS Certification refers to the written assurance that may be issued by the 
30 
BPS stating that the LPG cylinder has complied with the existing PNS or any other 
31 
standards governing specifications and requirements for the repair of steel cylinders 
I 
32 
for LPG; 
. 
33 
(f) Brand Ownerrefers to a person or entity using the brand or trade name, 
34 
logo, mark or distinction either as actual user thereof or as duly registered owner' 
35 
with the corresponding registry of the Intellectual Property Office (IPO) and/ or the 
36 
DTI; 
37 
(g) Centralized LPG Distribution Systemrefers to a network of pipes or similar 
38 
conduit use for the conveyance of LPG from the piped LPG provider to consumers 
39 
confined within the same compound or establishment such as, but not limited to, 
40 
shopping malls and condominiums; 
41 
(h) Container shall refer to any portable pressure vessel for the storage of LPG 
42 
for automotive use; 
2 


(i) Cross Filling refers to the filling of LPG cylinders by a person other than by 
2 
the cylinder owner; 
3 
0) Cylinder or LPG Cylinderrefers to any portable pressure-vessel or container 
4 
for LPG, designed for the transportation and storage of LPG; 
5 
(k) Cylinder Owner refers to the owner of the cylinder as shown by the brand, 
6 
mark, trade name, or business name embossed or engraved or otherwise 
7 
permanently indicated on the LPG cylinder in the manner prescribed by the DTI; 
8 
Provided, That an LPG participant in possession of CI generic LPG cylinder properly 
9 
marked or relabelled or repainted at the time of the effectivity of this Act shall be 
10 
presumed the owner thereof; 
II 
(I) Cylinder Exchange refers to the industry practice whereby a consumer who 
12 
possesses an empty LPG cylinder may use the same to purchase the same or 
13 
different brand of filled LPG cylinder; 
14 
(m) Cylinder Swapping refers to the exchange of LPG cylinders among industry 
15 
players; 
16 
(n) Defective Cylinder generally refers to damaged, unsafe and dilapidated LPG 
17 
cylinder due to corrosion or pitting, dents, cuts, gouges, digs, bulges, leaks and other 
18 
similar defects that render the LPG cylinder unsafe for distribution creating a 
19 
substantial risk of injury to the public in accordance with the guidelines set by the 
20 
DTI and as may be further. defined in particular details by the LPG Industry 
21 
Monitoring and Inspection Committee; 
22 
(0) Generic Cylinder refers to a safety-compliant cylinder, which are already 
23 
circulating in the market prior to the effectivity of this Act, bearing no brand, mark, 
24 
trade name, or business name embossed or engraved or otherwise permanently 
25 
indicated thereon but may be duly requalified by installation of permanent marking 
26 
in the manner prescribed by the DTI; 
27 
(p) LPG refers to the liquefied petroleum gas which consists of commercial 
28 
propane gas or commercial butane gas or a mixture of the two gases, with properties 
29 
conforming to the standards set forth in the existing PNS or any other standards 
30 
prescribed by the BPS; 
31 
(q) Petroleum Products refer to the products formed in the course of refining 
32 
. crude petroleum through distillation, cracking, solvent refining and chemical 
33 
treatment coming out as primary stocks from the refinery such as, but not limited to, 
34 
LPG, naphtha, gasoline, solvent, kerosene, aviation fuels, oils, waxes, and 
35 
petrolatum, asphalts, bitumen, coke and refinery sludge, or such refinery petroleum 
36 
fractions which have not undergone any process or treatment as to produce separate 
37 
chemically-defined compounds in a pure or commercially pure state and to which 
38 
. various substances may have been added to render them suitable for particular uses, 
39 
prOVided that the resultant product contains not less than fifty percent (50%) by 
40 
weight of such petroleum products; 
41 
(r) Philippine National Standards or PNS refers to the standards promulgated by 
42 
. the BPS of the DTI relating to product specifications, test methods, terminologies 
43 
and standardization procedures, guidelines and practices; 
44 
(s) Primanj Storage Facilities refer to the plant, depot, equipment and other 
45 
attendant facilities, such as underground caverns, refrigerated tanks ad pressurized 
46 
steel tanks, used for the storage of LPG; 
3 


1 
(t) Refilling Pinnt refers to any installation that is used for refilling LPG into 
2 
cylinders and has LPG bulk storage and refilling facilities therefor; 
3 
(u) Requalification refers to the method of procedure by which an LPG cylinder 
4 
is subjected to inspection and re-evaluation by the BPS in accordance with the 
5 
prescribed specifications and any other standard prescribed by the BPS governing 
6 
the method of requalification of steel cylinders for LPG to determine its suitability 
7 
for continuous use and distribution, and subsequent repair or scrappage, whichever 
8 
is appropriate; and with respect to generic cylinders circulating in the market prior 
9 
to the effectivity of this Act, such method includes the due installation of the 
10 
requisite permanent markings in the shoulder thereof; 
11 
(v) Repair refers to the removal and replacement of parts or attachments of 
12 
LPG cylinders or the performance of any other necessary corrective and restorative 
13 
measures pursuant to the PNS, to restore the fitness of LPG cylinders for refilling, 
14 
distribution and use; 
15 
(w) Reticulated System refers to a means of supplying LPG through a pipeline 
16 
network from a centralized cylinder bank or bulk installation to a multiple 
17 
customers situated in a common locality; 
, . 
18 
(x) Scrappage refers to the destruction of defective LPG cylinders declared by a 
19 
duly accredited requalifier to be unfit for use; 
20 
(y) Seal refers to the protective cover placed on the valve of an LPG cylinder; 
21 
and 
22 
(z) Tare Weight refers to the net weight of the LPG cylinder excluding its 
23 
contents, as engraved in the collar and painted in the body thereof and shall be 
24 
expressed in kilograms in accordance with the specifications as may be prescribed 
25 
by the DTL 
26 
27 
Section 5. LPG Industry Participants.-The State recognizes the LPG industry 
28 
as a vital component of tthe economy. This Act shall apply to and cover the refining,' 
29 
importation, refilling, transportation, distribution and marketing of LPG, including 
30 
its industry participants: 
31 
(a) Auto-LPG Dispensing Station, deemed a dealer or retail outlet for purposes 
32 
of this Act, shall refer to an outlet, facility or business establishment which retails 
33 
Auto-LPG directly to individual end-users or to the motoring public; the same may 
34 
be stand-alone or located within or operated with a liquefied petroleum product 
35 
(LPP) retail outlet; 
36 
. (b) Bulk Consumer refers to any person or entity whose regular consumption of 
37 
LPG is limited to its own use and requires bulk storage of LPG at a volume as may 
38 
be determined by DTI; 
39 
(c) Bulk Loader refers to any person or entity engaging in the transportation 
40 
and carriage of LPG in large quantities in barges, rail or road tankers, bullet trucks 
41 
and similar transportation facilities; 
42 
(d) Bulk Supplier refers to any person or entity engaging in the sale or 
43 
distribution of LPG in large quantities as may be determined by the DTI; 
4 


(e) Consumer refers to any person who purchases LPG for one's own 
2 
consumption; 
3 
(f) Dealer refers to any person or entity engaged in the sale or trading of LPG 
4 
in cylinders under contract with a refiner or marketer who owns the LPG brand; 
5 
(g) Hauler refers to any person engaging in the distribution and delivery of 
6 
LPG cylinders from one place to another; 
7 
(h) Importer refers to any person engaging in the importation of LPG whether 
8 
for processing, sale or own use; 
9 
(i) Marketer refers to any person engaging in the sale of LPG, whether in bulk 
10 
or retail,.under his own brand name; 
i 1 
0) Piped LPG Provider refers to any person engaging in the business of supply 
12 
or distribution of LPG to consumers through a Centralized LPG Distribution 
13 
System, including operators of central storage compounds for piped LPG or 
14 
reticulated system facilities; 
15 
(k) Qualified LPG Seroiceperson refers to an individual who has been trained, 
16 
qualified and certified by the DOE or any deputized agency thereof, or to an 
17 
individual who has successfully completed an approved training course for LPG 
18 
servicemen in a training school duly recognized and accredited by the Philippine 
19 
Government; 
20 
(I) Refiller refers to (1) a service provider authorized by an LPG cylinder 
21 
owner to refill LPG cylinders on the latter's behalf, or any person who re£i1ls LPG 
22. into one's own LPG cylinders; 
23 
(m) Refiner refers to any person who refines LPG through distillation, 
24 
conversion and treatment of crude oil and other naturally occurring petroleum 
25 
hydrocarbons; 
26 
(n) Requalifier refers to any person duly accredited by the DTI pursuant to this 
27 
Act to engage in the business of requalifying LPG cylinders; 
28 
(0) Repairer refers to any person who is duly certified by the DTI to engage in 
29 
the business of repairing LPG cylinders; 
30 
(p) Retail Outlet refers to any entity that sells LPG in cylinders directly to a 
: 31 
consumer in quantities as may be determined by the DTI; and 
32 
(q) Scrapping Center refers to any person engaging in the business of disposing 
33 
defective LPG cylinders. 
34 
35 
36 
CHAPTER 2 
37 
IMPLEMENTING AGENCIES 
38 
39 
Section 6. Lead Agency. - The DTI shall be the primary agency in the 
40 
implementation and enforcement of this Act. The DTI shall strictly monitor and 
41 
supervise the LPG industry and its participants to ensure due compliance with 
42 
national product quality and safety, environmental and occupational safety, and· 
43 
consumer welfare standards. 
5 


2 
Section 7. Powers and Functions of the DTI .- To help effectively implement 
3 
the provisions of this Act, the DTI shall have the following exclusive powers and 
4 
functions: 
5 
(a) 
Formulate and implement policies, programs and regulations for 
6 
the importation, exportation, stockpiling, storage, shipping, transportation, refining, 
7 
processing, marketing and distribution of LPG, whether distributed in cylinders, 
8 
through centralized LPG distribution systems, or other means, to ensure promotion 
9 
of a truly competitive market under a regime of fair prices, adequate supply of 
10 
environmentally clean and high quality petroleum products; 
11 
(b) 
Implement industrial, environmental and occupational safety 
12 
standards for LPG refineries, refilling plants, depots storage areas, transportation 
13 
facilities and other facilities or business premises of the owners thereof and exercise 
14 
visitorial powers in order to inspect and evaluate whether such LPG refineries, 
15 
refilling plants, depots, storage areas, transportation facilities and other facilities or 
16 
business premises comply with safety standards. During such inspection, the DOE 
17 
may scrutinize the records of the concerned LPG industry participants and cause the 
18 
appropriate seizure of filling heads and other equipment, facility and conveyance 
19 
that are found being used in illegal operations; 
20 
(c) 
Inspect and evaluate LPG at any time from and after its purchase 
21 
by an importer, refiner, marketer, or refiller while it is intended for circulation or 
22 
distribution to the public, to ensure promotion of a truly competitive market under a 
23 
regime of fair prices, adequate supply of enVironmentally clean and high quality 
24 
petroleum products. 
I 
25 
(d) 
Investigate, prosecute and impose penalties for dumping activities 
26 
or unauthorized filling of bulk tanks installed in industrial LPG consumers by bulk 
27 
suppliers other than the owner of the tanks; 
28 
(e) 
Investigate, motu proprio or upon verified report of any person, 
29 
other possible infractions of this Act by concerned LPG industry participants, 
30 
initiate the necessary complaints with the proper court or government agency and 
31 
secure administrative sanctions as provided under this Act; 
32· 
(f) 
Issue and grant Safety Compliance Certificate to concerned LPG 
• 33 
industry participants, except manufacturers of LPG cylinders and ancillary 
34 
equipment, and suspend or revoke the same after due notice and hearing for 
I 35 
Violating any provision of this Act; 
36 
(g) 
Create and maintain a central database of concerned LPG industry 
'37 
participants, and an inventory of existing and projected LPG supply levels in the 
38 
country which shall be updated monthly on its own initiative or through reports of 
39 
said participants; 
40 
(h) 
Investigate and keep a record of incidents of injury or damage to 
41 
person or property caused by or attributable to the improper production, refilling, 
42 
storage, handling or dispensing or use of LPG for purposes of prosecuting or filing 
43 
the appropriate administrative or criminal complaints against responsible persons; 
44 
(i) 
Establish and develop research and training programs to develop 
45 
new uses for LPG, promote improved and innovative methods and technologies for 
6 


• 
• 
1 
safe ai1d efficient production, storage, handling or use of LPG, and to foster public 
2 
awareness thereof; 
. 
3 
0) 
Consult and coordinate, on a regular basis, with LPG industry 
4 
participants, associations and consumers concerned in furtherance of the objectives 
5 
of this Act; and 
I 
6 
(k) 
Extend all necessary assistance to the DTI in the implementation 
7 
and enforcement of measures in furtherance of the objectives of this Act. 
8 
9 
Section 8. Additional Powers and Functions of the DTI. - To effectively 
10 
implement and enforce the provisions of this Act and in addition to its powers and 
11 
functions under existing laws, the DTI Secretary shall have the following powers: 
12 
(a) Promulgate and implement policies on safety and quality standards as well 
13 
as promote fair trade practices in the LPG industry; 
14 
(b) Review and revise the Philippine National Standards (PNS) for LPG 
15 
cylinders and ancillary equipment; 
16 
(c) Enter into a Memorandum of Agreement with other government agencies, 
17 
including but not limited, to the Bureau of Customs (BOC) and the Department of 
18. 
Energy (DOE), in order to define areas of cooperation and coordination, more 
19 
particularly regarding the importation of LPG, cylinders and ancillary equipment; 
20 
(d) Coordinate with the Department of Interior and Local Government (DILG) 
21 
and the Local Government Units (LGUs) for the orderly and effective 
22 
implementation of this Act and of the orders, rules and regulations and issuances 
23 
pursuant thereto, including recommendations for the suspension or revocation of 
24 
business permits or licenses of LPG industry participants found to be in violation of 
25 
this Act; 
26 
(e) Establish a scheme that will govern the certification, requalification and 
27 
repair of LPG cylinders; 
28 
(f) Exercise visitorial powers over the premises and delivery equipment of 
29 
LPG cylinder manufacturers, retailers, repairers, traders, requalifiers and dealers; 
30 
(g) Inspect and evaluate LPG cylinders, whether manufactured locally or 
31 
imported, filled or unfilled, prior to or after any sale by refiners, importers, 
32 
marketers, brand owners or refillers, or such LPG cylinders that are for distribution· 
33 
to dealers and retail outlets to determine conformity to established quality and 
34 
safety standards for LPG cylinders developed and established by the BPS and their 
35 
fitness for public sale and distribution; 
36 
(h) Direct LPG brand owners, refillers, dealers and retail outlets to periodically 
37 
submit cylinders for requalification and to secure proper proof of compliance 
38 
therewith in accordance with the requirements of the BPS; 
39 
(i) Grant and/or revoke accreditation and certification of conformity to PNS 
40 
to requalifiers, repairers, scrapping centers, LPG cylinder and seal manufacturers 
41 
and other independent,competent, private persons and entities that provide 
42 
products and services to ensure compliance by LPG industry participants with the 
43 
PNS for LPG cylinders and ancillary equipment; 
7 


• 
1 
0) Issue and grant Safety Compliance Certificate to manufacturers of ,LPG 
2 
cylinders and ancillary equipment, and suspend or revoke the same after due notice 
3 
and hearing for Violating any provision of this Act; 
4 
(k) Establish the guidelines for the scrapping of defective LPG cylinders; 
5 
(1) Require any person, firm, association, partnership or corporation engaged 
6 
in the manufacture, requalification, repair, sale or distribution of LPG cylinders to 
7 
file with the BPS reports or answer in writing to specific queries on such information 
8 
'as may be required from them; 
9 
(m) Investigate and compile cases of violation of the PNS and its future 
10 
amendments or the LPG Cylinders Standards and its implementing rules and 
11 
regulations; 
12 
(n) Confiscate illegally manufactured, repaired, altered and tampered 
13 
cylinders, Whether local or imported, and such substandard LPG cylinders in 
14 
circulation that do notconfoym to established quality and safety standards 
15 
developed and established by BPS and the LPG Industry Monitoring and Inspection 
16 
Committee; 
17 
(0) Inspect and evaluate ancillary equipment, whether manufactured locally or 
18 
imported and certify to their conformity to PNS which may be accordingly issued, 
19 
and their fitness for public sale and distribution; 
20 
(p) Impose and collect administrative fines for any violation of the provisions 
21 
of this Act, as well as fees or similar charges for its services, including the processing' 
22 
of applications for accreditation and certification; 
23 
(q) Enlist the assistance and deputize the Philippine National Police (PNP) 
24 
and/or the National Bureau of Investigation (NBI) in the due implementation and 
25 
enforcement of any compulsory processes, warrants for search and seizure, and 
26 
administrative penalties; Provided, That only the personnel or unit of the PNP duly 
27 
deputized by the DTI in a special mission order, or such special task force from the 
28 
different law enforcement agencies organized by the DTI for the purpose, shall have 
29 
the authority to implement or enforce the police functions in this Act; 
30 
(r) Undertake research, standardization, promofion, market monitoring, 
31 
certification, testing, accreditation and enforcement program to ensure the 
32 
protection of consumer interest and public welfare; 
33 
(s) Exercise such other powers and functions as may be necessary or 
34 
incidental to attaining the objectives of this Act, 
35 
36 
Section 9. LPG Industry Monitoring and Inspectipn Committee. -The LPG 
37 
Industry Monitoring and Inspection Committee is hereby created for the purpose of 
38 
monitoring compliance with the relevant Philippine standards which shall be 
39 
composed one representative each from the DTI-Bureau of Product Standards, the 
40 
DOE-Oil Industry Management Bureau (OIMB), the Bureau of Fire Protection (BFP), 
41 
the consumer groups and each of the recognized LPG industry associations or 
42 
organizations duly existing at the time of the effectivity of this Act. The Committee 
43 
shall have the following duties and functions: 
8 


• 
, 1 
(a) Conduct thorough review. and evaluation of the rules and regulations, 
2 
policies, safety standards and PNS affecting the LPG industry; 
3 
(b) Formulate and provide for specific guidelines and standards further 
4 
defining a defective cylinder which may be properly considered as injurious, 
5 
dangerous or unsafe for distribution and use; 
6 
(c) Conduct periodic and regular LPG monitoring at all levels whether at the 
7 
primary storage facilities, importer's warehouse, refineries, bulk loaders, refilling 
8 
plants or auto-LPG dispensing station; 
9 
(d) Conduct periodic and regular monitoring of LPG cylinder and ancillary 
10 
equipment at all levels whether at the plants of the manufacturers, refiners, refillers, 
II 
marketers, repairers and requalifiers, and in the importer's warehouse or those in 
12 
circulation in the local market; 
13 
(e) Publish annually in at least one (1) newspaper of general circulation related 
14 
rules and regulations; and 
15 
(e) Initiate the filing of cases and/or complaints against" violators of any 
16 
provisions of this Act. 
17 
18 
CHAPTER III 
19 
20 
SAFETY MECHANISMS AND OTHER BUSINESS REQUIREMENTS 
21 
22 
Section 10. Safety Compliance Certificate.-For purposes of this Act, the Safety 
23 
Compliance Certificate shall certify that, after conduct of the Standards Compliance 
24 
Inspection, such person has duly complied with all the documentary requirements, 
25 
and that safety rules and regulations prescribed by the LPG Industry Monitoring 
26 
and Inspection Committee applicable to the particular classification of the concerned 
27 
LPG industry participant as defined and stated in this Act shall have been fully 
28 
complied with: 
29 
(a) Proper manufacture, maintenance and requalification of all its cylinders 
30 
prior to the release thereof to the public in accordance with this Act; 
31 
(b) Proper filling of cylinders; 
32 
(c) Assurance that LPG is readily available at his refilling plant/ s for refilling 
33 
into his own cylinders; and 
34 
(d) Refilling of his own cylinders, unless authorized by another brand owner. 
35 
36 
Section 11. Required Submissions for Safety Compliance Certificate.- A Safety 
37 
Compliance Certificate shall only be issued upon a satisfactory finding of the 
38 
applicant's compliance with the provisions of this Act and submission of 
39 
requirements, which may include the following, where applicable: 
40 
(a) Certification of Compliance of applicant's facilities with fire safety laws 
41 
and regulations from the BFP; 
42 
(b) Environmental Compliance Certificate (ECC) from the DENR; 
9 


(c) Product liability insurance certificate from an insurer duly registered with 
2 
and licensed by the Insurance Commission; 
3 
(d) Permits on suitability, safety and soundness of plant and facilities for the 
4 
proposed or existing operation; 
5 
(e) Compliance with the provIsions of Republic Act No. 9514, otherwise 
6 
known as the "Revised Fire Code of the Philippines of 2008", and/ or pamphlet 58 of 
7 
the National Fire Protection Association (NFPA 58), otherwise known as the 
8 
"Liquefied Petroleum Gas Code; and 
9 
(0 Accreditation or certificate of conformity to PNS issued by the DTI to 
10 
requalifiers, repairers, scrapping centers, LPG cylinder and seal manufacturers and 
II 
other LPG industry participants; 
12 
(g) Such other documents or requirements which the DOE may prescribe as 
13 
necessary for the effective implementation of this Act. 
14 
15 
Section 12. Requirement Prior to Engaging in Business. - Any person 
16 
intending to engage in any activity or business involving LPG, cylinders and 
17 
ancillary equipment shall secure its Safety Compliance Certificate from the DOE or 
18 
DT1, as the case may be, prior to commencement of construction and commercial 
19 
operations. The Safety Compliance Certificate shall be valid for a period of ten (10) 
20 
years or any such shorter period but not less than three (3) years, as may be 
21 
accordingly determined by the DOE or DTI, in consultation with the LPG Industry 
22 
Monitoring and Inspection Committee. Any such person that subsequently engages 
23 
in an activity or business outside of the scope of its Safety Compliance Certificate 
24 
shall duly notify the DOE and secure the appropriate Safety Compliance Certificate 
25 
for the said new activity and business. The DOE shall prescribe specific guidelines 
26 
for compliance by retail outlets, dealers, haulers in remote areas outside Metro 
27 
Manila, in which case the verified undertaking under this Chapter may be submitted 
.28 
through registered mail, WithOl1t prejudice to the conduct of a standards compliance 
29 
inspection. 
30 
31 
Section 13. Persons Already Engaged in LPG Business-
Subject to the 
32 
proVisions of Section 41 of this Act, any person already legally engaged in any 
33 
activity or business involving LPG, cylinders and ancillary equipment during the 
34 
effectivity of this Act shall obtain a Safety Compliance Certificate within six (6) 
35 
months from such effectivity or prior to the renewal of its local business license or 
36 
permit, whichever comes first, but in any case, not less than three (3) months from 
37 
said effectivity. 
38 
39 
Section 14. Updating and Posting of Safety Compliance Certificate.- The 
40 
documentary requirements for the issuance and renewal of Safety Compliance 
41 
Certificate shall be updated every three (3) years or any such period as the DOE or 
42 
DTI may prescribe and shall be prominently posted or displayed in a public, 
43 
accessible and conspicuous area within the business premises of the concerned LPG 
44 
industry participant. 
45 
10 


Section 15. Suspension or Revocation of License to Operate. - Pursuant to its 
2 
power to issue Safety Compliance Certificate, the DOE shall likewise have the power 
3 
to suspend or revoke, after due notice and hearing, the Safety Compliance 
4 
Certificate of any person engaged in any activity or business involving LPG for the 
5 
commission of any of the prohibited acts under Chapter XIII of this Act, and for . 
6 
violation of any provision of this Act and its IRR, except those which fall under the 
7 
jurisdiction of the DTI and other concerned government agencies. 
8 
9 
Section 16. Issuance of safety Compliance Certificate Prior to the Grant or 
10 
Renewal of Local Government Business License or Mayor's Permit. - The Safety 
11 
Compliance Certificate provided under Section 9 of this Act shall be included as a 
12 
documentary requirement for the grant or renewal of any local government license 
13 
or permit to engage in business involving LPG, LPG' cylinders, or ancillary 
1'1 
equipment, regardless of whether such products or activities constitute the entire or 
1·5 
a portion of the business for which a business license is sought by the applicant; 
1'6 
Provided, That upon proper showing by the applicant of the completion of the 
17 
material documentary requirements for the issuance of the Safety Compliance 
18 
Certificate as duly submitted with the DOE or DTI and/or inaction on the part of 
19 
DOE or DTI thereon for a period exceeding thirty (30) days from completion of the 
20 
said material documentary requirements as enumerated in an official checklist, the 
21 
issuance or renewal of any local government license or permit to engage in business 
22 
involving LPG, LPG cylinders, or ancillary equipment may be provisionally granted 
23 
by the LGU subject to the exercise of its sound discretion. 
24 
25 
Section 17. 
Action of LGUs on Suspended or Revoked Safety Compliance 
26 
Certificate.- Pursuant to their local autonomy and other powers under Republic Act 
27 
No. 7160, otherwise known as the "Local Government Code of 1991," or upon 
28 
recommendation of the DOE on the ground of the suspension or revocation of the 
29 
Safety Compliance Certificate, the LGUs may suspend or revoke, upon due notice 
30 
and hearing, the business permit or license of any LPG industry participant within 
31 
their respective areas of jurisdiction for the violation of the provisions of this Act. 
32 
Upon notice of suspension or revocation by the DOE or DTI of the Safety 
33 
Compliance Certificate of an LPG industry participant, the LGU concerned shall 
34 
immediately direct the LPG industry participant to show cause within a period of at 
35 
least ten (10) working days why its business permit or license shall not be similarly 
36 
suspended or revoked. In case of conflict between the decisions of the DOE or DTI 
37 
and the LGU involving the said matters, the decision of the court shall prevail. 
:i8 
Unless restrained or enjoined by a competent court, the LPG participant may 
39 
continue to do business pursuant to its existing or provisional business license or 
40 
permit without prejudice, however, to the strict monitoring and supervision by the 
41 
DTI more particularly on the enforcement of existing safety and quality standards. 
42 
43 
Section 18. Certificate of Accreditation for Manufacturers, Requalifiers, 
44 
Repairers of LPG Cylinders and Cylinder Seal Manufacturers.- Any person who 
45 
intends to engage in the business of manufacturing, requalifying, repairing or 
46 
scrappage of LPG cylinders, and seal manufacturing shall obtain a Certificate of 
47 
Accreditation from the DTI prior to the commencement of its operations or prior to 
48 
the renewal of its business license or permit, and annually thereafter. 
11 


2 
Section 19. 
Standards Compliance Inspection. - The DOE shall not issue a 
3 
Safety Compliance Certificate unless it is shown, upon proper conduct of Standards 
4 
Compliance Inspection of refinery, storage, hauling, transportation, refilling or 
5 
installation facilities and equipment, that the LPG industry participant has complied 
6 
with the provisions of this Act and such other existing rules and regulations, to 
7 
ensure that clean, environmentally-safe and worker-benign technologies are applied 
8 
and conformity with quality and safety standards and other mandatory 
9 
requirements under this Act. 
The LPG Industry Monitoring and Inspection 
10 
Committee shall prescribe guidelines for the proper conduct of the standards 
II 
compliance inspection, including but not limited to the scope of the relevanr 
12 
premises and records as may be subjected to inspection, as well as enlisting of 
13 
assistance from other government agencies to carry out the inspection. 
14 
15 
Section 20. 
Frequency of Standards Compliance Inspection.- The DOE may, 
16 
motu proprio or upon a verified statement or complaint by any person, conduct 
. 17 
regular or random inspections of the refinery, storage, hauling, transportation or 
18 
installation facilities and equipment of LPG industry participants as it may deem 
19 
reasonable and necessary to implement the purposes of this Act. 
20 
21 
Section 21. 
Issuance of Receipts in Bulk Transactions.- All transactions 
22 
involving the sale or transfer of LPG in bulk must be covered by an official receipt or 
23 
sales invoice in prescribed form bearing, in addition to other requirements under 
24 
applicable laws,. the following information: 
25 
(a) Registered name of the seller; 
26 
(b) Address of the seller; 
27 
(c) Date of the transaction; 
28 
(d) Quantity or volume of the product; 
29 
(c) Plate number of transporting trucks or registered name of transporting 
30 
barge; 
31 
(1) 
Total price of the transaction; and 
32 
(g) Such other information as may be prescribed by the DOE with the 
3.3 
concurrence of affected industry players. 
34 
35 
Section 22. 
Issuance of Receipts in LPG-Filled Cylinder Transactions.- All 
36 
transactions involving the sale or transfer of LPG in cylinders from dealers to retail 
37 
outlets and to direct consumers must be covered by an official receipt or sales 
38 
• invoice bearing, in addition to other requirements under applicable laws, the 
39 
following information: 
40 
(a) Registered name of the seller; 
41 
(b) Address of the seller; 
12 


(c) Date of the transaction; 
2 
(d) Brand of LPG 
3 
(e) Serialj tracking number of brand owner 
4 
(f) Net weight or weight of the LPG contained in the cylinder; 
5 
(g) Unit price per LPG cylinder; 
6 
(h) Total price of the transaction; and 
7 
(i) Such other information as may be required by the DOE. 
8 
9 
Section 23. Issuance of Receipts in Other Transactions. -
All other 
10 
transactions involving the sale or any other conveyance of LPG cylinders from 
11 
importer or manufacturer to an LPG industry participant, and such other sale or 
12 
transfer of possession of ownership of LPG from one LPG industry participant to 
13 
another must likewise be covered by an official receipt, sales invoice or other written 
14 
instrument bearing the above information, as may be applicable. 
15 
16 
Section 24. Reports and Disclosure to the DTI and DOE- The DTI and DOE 
17 
shall have additional power and authority to require LPG industry participants to 
18 
submit written, electronic or other form of reports or disclosures, as the DTI and 
19 
DOE may respectively deem reasonable and necessary to perform their functions 
20 
under this Act. Any LPG industry participant who fails to submit any such report or 
21 
disclosure within the period and in the manner prescribed by the DTI and DOE shall' 
22 
be penalized under Chapter XIII of this Act. 
23 
24 
Section 25. 
Central Database of LPG Industry Participants. - The central 
25 
database of LPG industry participants shall include their corporate or business name 
26 
or trade name; list of all directors and officers; principal office or business address; 
27 
primary purpose or nature of business; registered brand name or logo for LPG, LPG 
28 
cylinder, facilities and equipment; haulers, dealers, retail outlets and LPG cylinder 
29 
seal manufacturers; violations committed or incidents relating to such violations, if 
30 
any; agreements with other LPG industry participants, such as for cross-filling and 
31 
similar arrangements; list of lost, stolen or missing LPG cylinders; and such other 
32 
relevant information as may be determined by the DTI. The central database shall be 
33 
created by the LPG Industry MonItoring and Inspection Committee within one (1) 
34 
year from the effectivity of this Act. This central database shall be updated on a 
35 
monthly basis and shall be made available to the public and through the internet 
36 
subject to reasonable fees and charges and during office hours. 
37 
, 38 
39 
40 
41 
CHAPTER IV 
AUTO-LPG 
42 
Section 26. Retailing of Auto-LPG.-For purposes of this Act, an Auto-LPG 
43 
Dispensing Station shall be deemed a dealer or retail outlet subject to the same 
13 


provisions applicable to the said LPG industry participants. Any person who is 
2 
operating or intending to operate an Auto-LPG Dispensing Station shall comply 
3 
with the following requirements and such other requirements as may be provided in 
4 
the IRR if this Act: 
5 
(a) An Auto-LPG Dispensing Station shall conform to the existing standards 
6 
for the construction and safety operation of Auto-LPG Dispensing Stations and other 
7 
standards prescribed by the BPS; 
8 
(b) An Auto-LPG Dispensing Station shall only refill LPG containers for 
9 
automotive use which conform to the specifications prescribed in the existing PNS 
10 
and installed in vehicles complying with the existing Code of Practice For the Use of 
11 
Liquefied Petroleum Gas (LPG) System in Internal Combustion Engines" and other 
12 
standards prescribed by the BPS; and 
13 
(c) An Auto-LPG Dispensing Station shall not fill or refill LPG cylinders for 
14 
household or commercial use. 
15 
16 
Section 27. 
Ownership of LPG Containers. -
Containers of LPG for 
17 
automotive use are permanently installed inside the vehicles and are therefore 
18 
inherent and integral parts of the vehicle. As such, ownership of these containers 
19 
pertains to the vehicle owner. 
20 
21 
Section 28. Training and Qualification of Personnel of Auto-LPG Dispensing 
22 
Stations.-
Auto-LPG Dispensing Station Personnel shall, as a minimum 
23 
requirement, undergo training and qualification conducted by any government-
24 
recognized or accredited training institution for the proper handling and retailing of 
25 
Auto-LPG. Such proof of training shall. be submitted to the DOE prior to its initial 
26 
operation and subsequent renewal of its Safety Compliance Certificate. 
27 
28 
CHAPTER V 
29 
30 
OWNERSHIP OF LPG CYLINDERS 
31 
32 
Section 29. 
Ownership of LPG Cylinders.- The LPG brand owner whose 
33 
permanent mark or marking appears on the LPG cylinder, generic or otherwise, 
34 
shall be presumed the owner thereof, irrespective of the party in custody or 
35 
possession of the LPG cylinder and regardless of whether or not such LPG cylinder 
36 
is or continues to be properly marked, stamped or identified to contain its LPG 
37 
brand, or whether or not such LPG cylinder is in compliance with or continues to 
38 
comply with any other product or quality standard prescribed under law or by the 
39 
BPS pursuant to this Act, unless otherwise there is any unequivocal proof or 
40 
indication that the LPG cylinder was sold, alienated, or otherwise disposed of by the 
41 
refiner, importer, refiller or marketer to an unrelated third party under a written 
42 
instrument. 
43 
44 
Section 30. 
Mandatory Refund of the Value of LPG Cylinders.-Except as 
45 
may be provided under a duly approved Swapping and Exchange Program, the 
46 
LPG brand owner shall, through its authorized dealer or outlet, refund the amount 
14 


indicated in the deposit slip or receipt when the consumer returns the LPG cylinder 
2 
with or without the deposit slip or receipt. If there is available receipt issued within 
3 
six (6) months from acquisition of the LPG cylinder, the refundable amount shall be 
4 
that appearing on the receipt. Otherwise, the refundable amount shall be at such 
5 
value fixed by the LPG Industry Monitoring and Inspection Committee. For this 
6 
purpose and subject to the requisite approval of the Secretary of DT!, the LPG 
7 
Industry Monitoring and Inspection Committee is hereby mandated to issue a 
8 
schedule of refundable value of LPG cylinders within ninety (90) days from the 
'9 
effectivity of this Act and to update the same after every three (3) years. Any 
10 
authorized dealer or outlet that refuses to refund the amount of deposit shall be 
11 
dealt with administratively. 
12 
13 
Section 31. 
Safety Obligations of Brand Owner. - The LPG brand owner 
14 
shall have the obligation to ensure that its J,.,PG cylinder comply with all required 
15 
quality and safety standards and specifications before they are released for 
16 
distribution: Provided, That receipt by the DTI of. a verified notice or report from the 
17 
LPG brand owner regarding any lost, stolen or missing LPG cylinders shall prima 
18 
facie relieve the LPG cylinder owner of the obligation to ensure the quality and 
19 
safety of such LPG cylinders. Such report may be rebutted by contrary evidence. 
20 
21 
Section 32. Safety' Obligations of Consumer. - The ownership of the LPG 
22 
cylinder being retained by the brand owner, the consumer, upon proper purchase, 
23 
owns the LPG filled or refilled in the LPG cylinder. As temporary possessor of the 
24 
LPG cylinder, the consumer shall have the corollary obligation to ensure that the 
25 
LPG cylinder sufficiently complies with self-evident quality and safety standards 
26 
and specifications prior to the purchase Clf the LPG content: Provided, Thatthe 
27 
consumer shall have both the right and further obligation to refuse acceptance of a 
28 
dilapidated or defective LPG cylinder: Provided, Further, That the LPG Industry 
29 
Monitoring and Inspection Committee shall continuously ensure the education and 
30 
dissemination of safety information to the consuming public. 
31 
32 
CHAPTER VI 
33 
34 
DECLARATION OF LPG CYLINDER AS INJURIOUS, UNSAFE OR 
35 
DANGEROUS 
36 
37 
Section 33. Declaration of LPG Cylinder as Injurious, Unsafe or Dangerous. 
38 
- Any interested person may, upon payment of the appropriate filing fee prescribed 
39 
by the DTl, petition for an order declaring an LPG cylinder to be defective as 
40 
defined in further details by the LPG Industry Monitoring and Inspection 
41 
Committee. When the DTI finds, motu proprio or acting on such petition, that an 
42 
LPG cylinder is defective and hence, possibly injurious, unsafe, or dangerous, it 
43 
shall, after due notice and hearing, issue a cease and desist order prohibiting its sale 
44 
or distribution to the consuming public, The immediate confiscation, recall, seizure, 
45 
or impoundment of any LPG cylinder, when sufficiently warranted under the 
46 
circumstances, may only be made pursuant to a valid warrant for search and seizure 
47 
duly issued by a court of competent jurisdiction. In the event of any valid search or 
48 
seizure of LPG cylinders, the issuing court shall afford the c.oncerned LPG industry 
49 
participant with a hearing, within forty-eight (48) hours from issuance of such order, 
50 
for the purpose of determining the propriety of the recall and seizure of the LPG 
15 


cylinders: Provided, Further, That such a declaration that the LPG cylinder is possibly 
2 
injurious, unsafe, or dangerous shall be limited to instances when the LPG cylindei 
3 
is already filled and already sealed inside the plant or business premises of the LPG 
4 
indust~y participant. 
5 
6 
Section 34. 
Period to Resolve. - For cases initiated motl;{ proprio by the DTI, it 
7 
shall make a final determination as to whether or not an LPG cylinder is injurious, 
8 
unsafe or dangerous within thirty (30) calendar days from termination of 
9 
administrative proceedings: Provided, That in the absence of such determination 
10 
upon expiration of the prescriptive period, the cease and desist order, including any 
11 
warrant for search and seizure of the LPG cylinder, shall ipso facto be rendered 
12 
ineffective, and the DTI shall thereafter cause the release of the LPG cylinder to the 
13 
LPG industry participant in custody thereof prior to the prohibition from public sale 
14 
or distribution, or the issuance of the warrant for search and seizure. 
15 
16 
Section 35. 
Effects of Pendency of Petition.-Within an inextendible period of 
17 
thirty (30) calendar days from notice of filing of the petition for declaration of an 
18 
LPG cylinder as injurious, dangerous or unsafe, the cylinder owner or possessor of 
19 
the subject filled LPG cylinder is preventively and preliminarily prohibited from 
20 
selling or distributing it to the consuming public, unless sooner lifted or set aside by 
21 
a court of competent jurisdiction. 
22 
23 
Section 36. 
Revocation of the Cease and Desist Order.-Within a period of ten 
24 
(10) days from notice of cease and desist order, the LPG cylinder owner may petition 
25 
for reconsideration or revocation of the said order: Provided, That if a verified 
26 
undertaking to cause the immediate repair or requalification rendering the LPG 
27 
cylinder compliant with appropriate PNS, or, where repair or requalification is not 
28 
possible or practicable, to present proof of the scrappage thereof, has been duly filed 
29 
or included in the motion for reconsideration or revocation, the DTI may further 
30 
cause from the issuing court the release of the seized LPG cylinder for immediate 
31 
repair, requalification or scrappage. The cease and desist order, including the 
32 
warrant for search and seizure, shall be accordingly revoked or set aside upon a 
33 
finding by the DTI that the subject LPG cylinder has been repaired or otherwise. 
34 
made compliant with the required PNS, or has been replaced with a like ot 
35 
equivalent LPG cylinder which conforms to the appropriate PNS: Provided, That the 
.36 
LPG cylinder owner shall not charge a consumer who avails of the remedy as 
37 
provided herein of any expenses or costs that may be incurred in the course of repair 
38 
and requalification. The application for cease and desisf order, and the search and 
39 
seizure warrant, when found to be filed or issued in bad faith, shall entitle the 
40 
aggrieved LPG cylinder owner to award of applicable damages, including the right 
41 
of action for administrative and criminal liabilities against the erring applicant and 
42 
responsible public officers. 
43 
44 
Section 37. 
Disposition of Duly Seized LPG Cylinders.- The rules for 
45 
disposition of duly seized LPG cylinders established by the DTI shall be adopted 
46 
and enforced, and as may be necessary, shall further be amended and enhanced by 
47 
the LPG Industry Monitoring and Inspection Committee. Subject to the repair or 
48 
requalification, when permissible, duly seized LPG cylinders in connection with the 
16 


• 
commission of any of the prohibited acts under Chapter XIII of this Act shall be 
2 
impounded for the purpose of preserving evidence during the pendency of. the 
3 
administrative and/ or criminal proceedings. 
Unless restrained by a court of 
4 
competent jurisdiction, filled LPG cylinders that are found by the DTI-BPS or DOE-
S 
OIMB to pose an imminent threat or danger of exploding shall be immediately 
6 
disposed of upon prior notice to the owner / s thereof. 
7 
8 
9 
CHAPTER VII 
10 
WEIGHING DEVICES 
11 
12 
Section 38. 
Calibrated and Scaled Weighing Devices Required in Premises.-
13 
All refiners, importers, refillers, haulers, dealers and retail outlets shall, at all times, 
14 
maintain in all their establishments or outlets and within the sales areas accessible to 
IS 
the public, suitable weighing devices duly calibrated annually and sealed by the 
16 
City or Municipal Treasurer, the Department of Science and Technology (DOST), or 
17 
any other government agency authorized to officially calibrate the same. The 
18 
weighing devices shall accurately measure LPG cylinders up to one-tenth (0.1) of 
19 
one kilogram. 
21 
Section 39. 
Checking of LPG Cylinder Content by Dealers, Retail Outlets 
22 
and Haulers.- All dealers, retail outlets and· haulers that sell directly to consumer 
23 
shall weigh the LPG cylinders before displaying the same in the sales areas and also 
24 
in the presence of the customers prior t6 sale, to afford the latter an opportunity to 
25 
verify the correcti1ess of the weight of the LPG cylinders and the LPG contents 
26 
thereof. 
27 
28 
29 
30 
31 
CHAPTER VIII 
LPG CYLINDER SEALING 
32 
Section 40. 
LPG Cylinder Sealing.~ All LPG cylinders shall, after filling, be 
33 
provided with seals which conform to the specifications of the DTI: Provided, That 
34 
the LPG Industry Monitoring and Inspection Committee shall establish such 
35 
specifications: Provided, further, That the LPG cylinder owner and its authorized 
36 
refiller shall be jointly responsible for ensuring that LPG cylinders are properly 
37 
sealed before the LPG cylinders leave the refilling plants: Provided, finally That LPG 
38 
cylinders with tampered or broken seals shall not be sold or distributed. 
39 
40 
Section 41. 
Sale of Seals. - All seals shall be registered with the DTI.LPG 
41 
cylinder seal manufacturers shall sell seals only to the registered LPG brand owner, 
42 
unless otherwise allowed by both the said registered LPG brand owner and the DTI. 
43 
44 
45 
46 
47 
CHAPTER IX 
LABELLING REQUIREMENTS 
17 


Section 42. 
Labelling Requirements for LPG Cylinders.- LPG cylinders shall 
2 
comply with the labeling requirements as provided for under the PNS, this chapter 
3 
and as may be further prescribed by the BPS .. 
4 
5 
Section 43. 
LPG Cylinder Collar.- All LPG cylinders, whether imported or 
6 
manufactured locally, shall have, among others, the following information 
7 
embossed or stamped on the LPG collar, and shall form an integral part of the LPG 
8 
cylinder collar, without danger of being erased or detached under ordinary handling 
9 
of the LPG cylinder: 
10 
(a) The manufacturer's registered trade name or brand name, trademark and 
II 
business name; 
12 
(b) For imported brand new LPG cylinders, the name and address of the 
13 
importer in the Philippines; 
14 
(c) Product Standard (PS) or Import Commodity Clearance Certification (ICC) 
15 
marks, as applicable; 
16 
(el) Specific standard used; 
17 
(e) Date of testing or requalification; 
18 
(f) Thickness plate; 
19 
(g) LPG cylinder water capacity; 
20 
, (h) Tare Weight; 
21 
(i) 
Design and test pressure; and 
22 
G) 
Serial number. 
23 
24 
Section 44. 
LPG Cylinder Body.- All LPG cylinders, whether manufactured 
25 
locally or imported, shall bear the following information on the shoulder of the LPG 
26 
cylinder: 
27 
(a) The registered brand name, h"ade name or trademark of the LPG product; 
28 
(b) Tare weight; and 
29 
(c) Net weight. 
30 
31 
Section 45. 
LPG Cylinder Shoulder. - The brand name, trade name or 
32 
trademark of the LPG product shall be embossed on the shoulder of the LPG 
33 
cylinder and shall form an integral part of the body of the LPG cylinder, without 
34 
danger of being erased or detached under ordinary handling of the LPG cylinder. In 
35 
the case of generic LPG cylinders in circulation at the time of the effectivity of this 
36 
Act, the brand name, trade name or trademark shall instead be stamped on their 
37 
shoulders; Provided, That within sixty (60) days from the effectivity of this Act, the 
38 
actual and/ or presumptive owner of the generic LPG cylinders shall report to the 
39 
DTI and the LPG Industry Monitoring and Inspection Committee the number and 
18 


, 
conditions of the generic LPG cylinders under his ownership and possession, which 
2 
may then be accordingly subjected to requalification by installation of the requisite 
'l 
permanent markings. 
4 
5 
Section 46. 
LPG Cylinder Color. - All LPG cylinders shall be painted with 
6 
color registered with the OTI, which distinguishes the brand owner of the LPG it 
7 
contains: Provided, That, when two or more brand owners are using the same color 
8 
for considerable length of time, the brand name, trade name or trademark must be 
9 
conspicuously embossed or engraved and! or permanently stamped thereon to 
10 
specifically distinguish the LPG cylinder from the other brands. 
11 
12 
13 
14 
15 
CHAPTER X 
DELIVERY VEHICLES, DRIVERS AND ATTENDANTS 
16 
Section 47. 
Delivery Vehicles, Drivers and Attendants.- All trucks and other 
17 
vehicles used for transporting and delivering LPG cylinders shall be open and the 
18 
same shall be registered with the OIl, in accordance with the guidelines to be 
19 
promulgated by the LPG Industry Monitoring and Inspection Committee. 
All 
20 
haulers shall display on their delivery trucks or vehicles a prominent LPG Industry 
21 
Participant signage. Failure to register the delivery vehicle shall give rise to a 
22 
presumption that the vehicle is not duly authorized to transport LPG. 
23 
24 
Section 48. 
Prohibition to Transport. - Vehicles not duly registered and 
25 
without the appropriate LPG Industry Participant signage shall be prohibited from 
26 
effecting any transport of LPG and cylinders. Upon issuance of a valid search and 
27 
seizure by a court of competent jurisdiction, any unregistered vehicle may be 
28 
immediately seized or impounded by the OTI. Guidelines for the accreditation of 
29 
drivers and attendants for LPG delivery vehicles shall be prescribed by the LPG 
30 
Industry Monitoring and Inspection Committee. 
31 
32 
33 
CHAPTER XI 
34 
LPG CYLINDER EXCHANGE, SWAPPING AND REHABILITATION 
35 
PROGRAM 
36 
37 
Section 49. Primary Objectives of the Program.-Any program for the 
38 
exchange, swapping and rehabilitation of LPG cylinders shall be founded on the 
39 
primordial purpose of eliminating from the market the existence and circulation of 
40 
defective, or potentially injurious, dangerous or unsafe LPG cylinders, generic or 
41 
otherwise. 
42 
I 
43 
Section 50. LPG 
Cylinder Exchange, 
Swapping 
and 
Rehabilitation.-
44' 
Immediately upon the effectivity of this Act, the LPG Industry Monitoring and 
45 
Inspection Committee, in consultation with the LPG refiners, importers, bulk 
46 
suppliers, refillers, dealers and retail outlets, hereinafter referred to .as the "Program 
47 
Participants", and other stakeholders, shall formulate and establish an LPG Cylinder 
19 


Exchange, Swapping and Rehabilitation Program, herein referred to as the 
2 
"Program", governed by the following principles and standards: 
3 
(a) The safety of the cylinder for the benefit of the consumer shall be the 
4 
priority concern. Any procedure in the implementation of the program which may 
5 
significantly increase the retail costs of an LPG cylinder, shall be subject to 
6 
consultations with consumer groups and Program Participants by the DOE; 
7 
(b) No procedure in the cylinder exchange, swapping and rehabilitation 
8 
system shall be permitted if it results, directly or indirectly, to unfair trade practices 
9 
that unduly benefit one industry participant over another. No combinations in 
10 
restraint of trade or unfair competition shall be allowed. 
II 
(c) The Program shall take into consideration the following factors: 
12 
(1) The prevailing economic conditions of the LPG industry, 
13 
including but not limited to, the supply of LPG including the levels of 
14 
import and domestic production of LPG adjusted for applicable foreign 
15 
exchange rates, the demand for LPG including the levels of household and 
16 
bulk use, as well as the prevailing prices of LPG, among others; 
17 
(2) The number of LPG cylinders and ancillary equipment classified 
18 
into its usability and cost effectiveness; 
19 
(3) The development in LPG safety technology and the energy sector 
20 
in general; 
21 
(4) The statistics and other information on the level of injuries from 
22 
LPG related incidents as well as safety compliance by each and all industry 
23 
participants; and 
24 
(5) Such other factors that may affect the viability of the LPG 
25 
industry particularly on its safety and affordabiIity. 
26 
27 
Section 51. Enforcement of the Program. - The DTI, upon the advisory and 
28 
policy guidelines of theLPG Industry Monitoring and Inspection Committee,shall be 
29 
in-charge of the implementation of the Program upon due consultations with the 
30 
Program Participants, consumer groups and other stakeholders. 
31 
32 
Section 52. 
Viability of Voluntary Alliance System. - In the process of the 
33 
formulation and establishment of the Program, the DTI shall continue to encourage 
34 
certain practices in the industry which serve the public interest and are intended to 
35 
achieve efficiency and cost reduction, ensure continuous supply of LPG products, 
36 
and enhance safety of LPG cylinders and protection to the consuming public. The 
37 
DTI shall further endeavor and encourage the Program Participants to organize 
38 
themselves into a voluntary Alliance System for the implementation of the Program: 
39 
Provided, That all measures shall be properly taken to promote fair trade and prevent 
40 
cartelization, monopolies, combinations in restraint of trade, and any unfair 
41 
competition in the LPG industry as defined in Article 186 of the Revised Penal Code, 
42 
and Articles 168 and 169 of Republic Act No. 8293, otherwise known as the 
43 
"Intellectual Property Code". 
44 
20 


--------------------------
---- ---- --------------------------------
Section 53. 
Feasibility of Contracts of Affiliation. - Taking into account 
2 
the voluntary and contractual nature of any Alliance System, the Program 
3 
Participants shall be encouraged by the DTI to enter into Contracts of Affiliation 
4 
which shall be exclusive in character whenever legally possible. Thereafter, the 
5 
Program Participants shall submit to the DTI and the LPG Industry Monitoring and 
6 
Inspection Committee for due approval the particulars of affiliation and! or 
7 
proposals for the formation of voluntary alliances. Upon the lapse of twelve (12) 
8 
months from the approval or issuance by the DTI of the requisite certification that 
9 
the particulars of affiliation and! or proposals for the formation of voluntary 
10 
alliances are in accordance with law, or on a shorter period of time upon a 
II 
certification by the DTI of satisfactory results of such voluntary alliance and! or 
12 
exclusive affiliation, the DTI and the LPG Industry Monitoring and Inspection 
13 
Committee shall issue appropriate rules setting out the mechanisms for the Alliance 
14 
System and! or Exclusive Contracts of Affiliation and gradually providing for the 
IS 
mandatory inclusion of all Program Participants into the Program, including the 
16 
appropriate sanctions for violation thereof: Provided, That, at the retail level, the DTI, 
17 
after due consideration, may allow the affiliation to be non-exclusive. Deliberate 
18 
refusal to participate in the Program shall then be dealt with administratively. 
19 
20 
Section 54. 
Local Exchange and Swapping Centers. - In the guidelines for 
21 
the implementation of the Program, the DTI and the LPG Industry Monitoring and 
22 
Inspection Committee shall provide for the establishment of regional or provincial 
23 
centers for exchange and swapping of LPG cylinders. 
24 
25 
26 
27 
28 
CHAPTER XII 
QUALITY STANDARDS 
29 
Section 55. 
Promulgation of Quality Standards.-
The LPG Industry 
30 
Monitoring and Inspection Committee shall formulate the specific guidelines for 
31 
mandatory compliance with the established quality standards and enforce the 
32 
appropriate sanctions for violations thereof. The quality standards shall provide for, 
33 
but not be limited to the following: 
34 
(a) Primary storage facilities; 
35 
(b) LPG Cylinder-Filling Plants and Facilities; 
36 
(c) Bulk-Loading, Unloading and Transportation of LPG; 
37 
(d) Dealers and Retail Outlets; and 
38 
(e) Auto-LPG Stations. 
39 
40 
Section 56. 
Mandatory Compliance with Quality Standards. - In order to 
41 
promote the use of environmentally safe and worker-benign technologies and 
42 
processes and reduce safety risks and operational hazards, LPG industry 
43 
participants are hereby required to comply with the operational standards 
44 
established for the LPG industry consistent with the PNS formulated by the BPS and 
45 
such additional regulations promulgated by the LPG Industry Monitoring and 
46 
Inspection Committee: Provided, That nothing in this Act shall allow licensees for 
21 


• 
refilling plants, dealers and retailers to sell ancillary equipment not authorized by 
2 
the LPG brand .owner: Provided, further, That the LPG Industry Monitoring and 
3 
Inspection Committee . shall in formulating the quality standards in this Act, when 
4 
applicable, adopt the Philippine LPG Association Safety Code and the applicable 
5 
international safety standards for the LPG industry including, but not limited to, 
6 
Pamphlet 58 of the National Fire Protection Association (NFPA 58), otherwise 
7 
known as the "Liquefied Petroleum Gas Code." 
8 
9 
CHAPTER XIII 
10 
II 
12 
PROHIBITED ACTS, FINES AND PENALTIES 
13 
Section 57. Serious Violations. - An imprisonment of at least six (6) months 
14 
but not more than two (2) years, or the prescribed fine, or both at the discretion of 
15 
the court, shall be imposed on any person, firm, partnership or corporation found 
16 
guilty of committing any of the serious violations: 
17 
(a) Obstruction of Inspection.-Any LPG industry participant who refuses, 
18 
prevents or.obstructs the inspection of its premises and records as provided under 
19 
Chapter III of this Act: Provided, That each instance of violation shall be penalized 
20 
with an alternative fine of Three Hundred Thousand Pesos (Php300,000.00) for an 
21 
individual and Five Hundred Thousand Pesos (Php500,000.00) for a corporation. 
22 
(b) Illegal Storage.- Any refiner, importer, refiller, hauler, dealer, retail outlet 
23 
or bulk consumer who stores LPG in bulk without obtaining a Safety Compliance 
24 
Certificate or Certificate of Non-Coverage as applicable which is required under 
25 
Chapter III of this Act: Provided, That each instance of violation shall be penalized 
26 
with an alternative fine of not less than Twenty Thousand Pesos (Php20,000.00) but 
27 
not more than One Hundred Thousand Pesos (Phpl00,000.00): Provided, further That 
28 
the second and subsequent violations shall be penalized with both fine and 
29 
imprisonment as provided herein; 
30 
(c) Failure to Comply with Product Standards.- Any concerned LPG industry 
31 
participant who, by act or omission, fails to comply with the mandatory 
32 
requirements on safety designs for refilling plants, equipment, depots, centralized 
33 
LPG distribution systems and similar facilities: Provided, That each instance of 
34 
violation shall be penalized with an alternative fine of not less than Fifty thousand 
35 
pesos (Php 50,000.00) but not more than One Million pesos (Php 100,000,000.00): 
36 
Provided, further That nothing in this Act shall preclude the court from ordering the 
37 
closure of the facility until such time that the mandatory requirements have been 
38 
. met; 
39 
(d) Lack of PNS Certificate. - Failure to secure required PNS Certificate for 
40 
LPG cylinders: Provided, That for each non-compliant LPG cylinder used and 
41 
distributed to consumers, such act shall be penalized with an alternative fine of Five 
42 
thousand pesos (Php 5,000.00) for an individual or Ten thousand pesos (Php 
43 
10,000.00) for a corporation: Provided, further That the second and subsequent 
44 
violations shall be penalized with both fine and imprisonment as provided herein: 
45 
Provided, finally, That this section shall not apply unless the LPG cylinder is in the 
46 
possession of an illegal refiller or trader. 
47 
(e) Adulteration.- A refiner, importer, refiller, piped gas provider, dealer, or 
48 
retail outlet who mixes LPG with another finished or unfinished petroleum product 
49 
or stock or with any non-petroleum substance or material that will result in product 
22 


1 
quality change or in the failure of the LPG to meet the required product 
2 
specifications of the DTI: Provided That, for each LPG cylinder containing adulterated 
3 
LPG, such act shall be penalized with an alternative fine of Ten thousand pesos (Php 
4 
10,000.00) for an individual and Twenty thousand pesos (Php 20,000.00) for a 
5 
corporation; 
6 
(f) Underfilling.-Sale, transfer, delivery or filling by refillers of LPG contained 
7 
in LPG cylinders in a quantity less than the LPG cylinder content required by the 
8 
DTI at the filling plant: Provided That, for each underfilled LPG cylinder, such act 
9 
shall be penalized with an alternative fine of Five thousand pesos (Php 5,000.00) for 
10 
an individual and Ten thousand pesos (Php 10,000.00) for a corporation: Provided, 
11 
forther That second and subsequent violations shall be penalized with both fine and 
12 
imprisonment: Provided, finally, That when the net quantity of LPG in cylinders sold, 
13 
transferred, or delivered by dealers or retail outlets is less than three tenths of one 
14 
kilogram (0.30 Kg) or the DTI-required LPG cylinder content quantity, the dealers or 
15 
retail outlets shall be penalized with the same fines imposable upon the refillers. 
16 
(g) Illegal Refilling. -The following acts constitute illegal refilling: Provided 
1'7 
That, for each illegally-filled or refilled by LPG cylinder, such acts shall be penalized 
18 
with an alternative fine of Ten thousand pesos (Php 10,000.00) for an individual and 
19 
Twenty thousand pesos (Php 20,000.00) for a corporation: Provided, forther That, 
2.0 
second and subsequent violations shall be penalized with both fine and 
21 
imprisonment: 
22 
(1) Refilling of LPG cylinder by a person or entity other than the rightful 
23 
owner thereof, unless an expressed permission is granted by the owner for 
24 
such refilling as evidenced by a written contract or similar instrument; 
25 
(2) Refilling of LPG cylinder with a brand, trademark, trade name, or 
26 
registered business name other than that of the brand owner indicated on the 
27 
LPG cylinder tank, otherwise called" pirate filling" or "cross-filling"; 
28 
(3) Refilling of LPG cylinder without the embossed markings or other 
29 
indication of the brand or trade name thereof, such as the stamped markings 
30 
respecting generic LPG cylinders, or bearing defaced, tampered or illegible 
31 
markings contrary to the mandatory labelling and stamping requirements 
32 
under this Act; 
33 
.. (4) Refilling of LPG which is due for repair, re-qualification or scrappage 
34 
as provided in this Act, or its subject to the recall or prohibition order of th~ 
35 
DOE; 
36 
(5) Filling of LPG cylinder directly from LPG tank trucks without the use 
37 
of approved filling machines; 
38 
(6) Refilling LPG from one LPG cylinder to another without using the 
39 
prescribed equipment; 
40 
(7) Backyard refilling of LPG cylinder other than in properly designed 
41 
LPG refilling plants; 
42 
(8) Filling LPG cylinder with products or substances other than LPG in an 
43 
effort to achieve the correct net weight; 
44 
(9) Refilling of LPG cylinders for household or commercial use by Auto-
45 
LPG Dispensing Stations; 
23 


. . • 
(10)Any other refilling of LPG cylinders in violation of the mandatory 
2 
requirements or prescribed standards under this Act; and 
3 
(11) Unauthorized loading of bulk LPG tanks in industrial accounts. 
4 
(h) Hoarding.- Any concerned LPG industry participant who, before a price 
5 
increase or in times of tight supply, unduly accumulates LPG products beyond his 
'6 
normal inventory levels and unreasonably limits or refuses to dispose of, sell, or 
7 
distribute LPG products to general public, even if the buyer or consumer has the 
8 
ability to pay in cash for the LPG products: Provided, That each instance of hoarding 
9 
shall be penalized with an alternative fine of at least One Hundred thousand pesos 
10 
(Php 100,000.00) but not more than One million pesos (Php 1,000,000.00).For 
11 
purposes of this Act, it shall be considered as prima facie evidence of hoarding when 
12 
the following condition ns concur: 
13 
(1) Said participant has stocks of LPG products fifty percent (50%) higher 
14 
than his usual inventory, and; 
15 
(2) Unreasonably limits, refuses, or fails to sell the same general public at 
16 
the time of discovery of the stocks. The determination of said participant's 
17 
usual inventory shall be reckoned from the third (3rd) month immediately 
18 
preceding the discovery of the stocks in case said participant has been engaged 
19 
in the business for at least three (3) months; otherwise, it shall be reckoned 
20 
from time he started his business. 
21 
(i) Unauthorized Trading of LPG Cylinders.- Any concerned LPG industry 
22 
participant who without the consent of the LrG cylinder owner, stores empty LPG 
23 
cylinders in quantities in excess of those allowed by the DTI, through LPG cylinder 
24 
swapping and other similar industry practices and exchanges, barters, sells, 
25 
distributes or otherwise transfers ownership and! or possession thereof to a person 
26 
or entity other than the LPG cylinder owner and without the authority of the LPG 
27 
cylinder owner: Provided That, for each illegally-stored or sold empty LPG cylinder, 
28 
such unauthorized trading shall be penalized with an alternative fine of Three 
29 
thousand pesos (Php3,000.00) for an individual and Six thousand pesos 
30 
(Php6,000.00) for a corporation: Provided, further That, second and subsequent 
31 
violations shall be penalized with·both fine and imprisonment; 
32 
(j) Tampering of LPG Cylinders and Similar Acts. - Unless a generic LPG 
33 
cylinder has been sold. to, and repainted or re-Iabeled and requalified by, a 
34 
subsequent brand owner which has been in circulation before the effectivity of this 
35 
Act, any tampering, alteration, 'or modification of LPG cylinder through any means 
36 
such as but not limited to, changing the cylinder valve, serial number, repainting, 
37 
and re-Iabeling, by any person other than the cylinder owner: Provided, That each 
38 
tampering of LPG cylinder shall be penalized with an alternative fine of Five 
39 
Thousand Pesos (Php5,000.00) for an' individual and Ten Thousand Pesos 
40 
(Phpl0,000.00) for a corporation: Provided, further That second and subsequent 
41 
violations shall be penalized with both fine and imprisonment; 
42 
(k) Illegal Possession of LPG Cylinder Seal.- Any person found in possession 
43 
of LPG cylinder seals, including the seals already used in the LPG cylinders without 
44 
authority from the LPG cylinder or its authorized refiller: Provided, That for each 
45 
LPG seal found in its possession, such act shall be penalized with an alternative fine 
46 
of Five thousand pesos (Php5,000.00) for an individual and Ten thousand pesos 
47 
(Phpl0,000.00) for a corporation: Provided, further That second and subsequent 
48 
violations shall be penalized with both fine and imprisonment. 
24 


----------------- -- ------- --
-- -- -------------------------------------
• 
(1) Importation of Used or Second-Hand LPG Cylinders.-
Any person who 
2 
imports used or second-hand LPG cylinders or containers, without securing 
3 
authority to import from the DTI: Provided, That such unauthorized importation 
4 
shall be penalized with an alternative fine of One hundred thousand pesos 
5 
(Php100,OOO.OO) or Three 
thousand pesos (Php3,OOO.OO) per LPG cylinder or 
6 
container whichever is higher; 
7 
(m) Sale or Distribution to Non-Complying Persons or Entities.- Any LPG 
. 8 
cylinder manufacturer, refiner, importer, refiller, dealer or retail outlet who 
9 
knowingly sells or distributes LPG products, LPG cylinders or LPG seals to persons 
10 
or entities committing any of the prohibited acts provided in this Act and in such 
11 
other issuances or orders to be issued by the DOE or the DTI as the case may be: 
12 
Provided, That such unlawful sale or distribution shall be penalized with an 
13 
alternative fine of not less than One hundred thousand pesos (Php100,OOO.OO) but 
14 
not more than Five hundred thousand pesos (Php500,OOO.OO); 
15 
(n) Pilferage of LPG.- Any person who pilfers LPG: Provided, That pilferage of 
16 
LPG shall be penalized with an alternative fine of One million pesos 
17 
(Php1,OOO,OOO.OO) for an individual and Two million pesos (Php2,OOO,OOO.OO) for a 
18 
corporation or imprisonment: Provided, further That second and subsequent 
19 
violations shall be penalized with both fine and imprisonment; 
20 
(0) Sale or distribution of LPG-filled Cylinders Without Seals.- Any person, 
21 
. brand owner, and its authorized refiller, dealer, or retail outlet who sells or 
22 
distributes LPG-filled cylinders without seal, with tampered or broken seals, or with 
23 
seal not belonging to the brand owner: Provided, That for each LPG cylinder, such act 
24 
shall be penalized with an alternative fine of not less than One thousand pesos 
25 
(Php1,OOO.OO) for an individual and Two thousand pesos (Php2,OOO.OO) for a 
26 
. corporation or partnership. 
. 
27 
28 
Section 58. 
Other Serious Violations. - A fine of at least One Hundred 
29 
Thousand Pesos (Php100,OOO.OO)· but not more than One Million Pesos 
30 
(Php1,OOO,OOO.OO) and imprisonment of at least six (6) years and one (1) day to 
31 
twelve (12) years shall be imposed on any person, firm, partnership or corporation 
32 
found guilty of committing any of the following prohibited acts: 
33 
(a) Manufacture, sale or distribution of LPG cylinders to the local market 
34 
without the necessary PS marks and other markings as required by PNS and its 
35 
future amendments, or the detailed standard.governing LPG cylinder manufacture, 
36 
requalification and repair; 
37 
(b) Sale and distribution of LPG cylinders considered substandard as defined 
38 
by the PNS; 
. 39 
(e) Manufacture or sale of LPG cylinders carrying a brand name and logo 
40 
mark or distinction without the express approval of the registered brand owner; 
41 
(d) Manufacture or Sale of LPG cylinders using substandard or non-industrial 
42 
steel plates; 
43 
(e) Wrong or misleading information stamped on the LPG cylinder such as the 
44 
tare weight; and 
25 


· ' 
(I) Knowingly selling illegally-filled or refilled LPG cylinders by marketers, 
2 
dealers or retail outlets; 
3 . 
4 
Section 59. Less Serious Violations.- All other violations of this Act shall be 
5 
considered as less serious violations for purposes of the application of the Three-
(; 
Strike Penalty pursuant to Section 72 of this Act. 
7 
8 
Section 60. 
Engaging in Business Without Safety Compliance Certificate.-
9 
Any LPG industry participant who' engages in business without securing a Safety 
10 
Compliance Certificate from the DTI as required under Chapter III of this Act shall 
11 
be penalized with a fine of Five thousand pesos (5,000.00) for an individual and Ten 
12 
thousand pesos (Php 10,000.00) for a corporation, for each day of operation without 
13 
a License to Operate. 
14 
15 
Section 61. Engaging in Business without Accreditation. - Any person who 
16 
engages in the business of manufacturing LPG cylinder seals or requalifying, 
17 
repairing or scrapping LPG cylinders without first securing a certificate of 
18 
accreditation from the DTI as provided under this Act, shall be penalized with a fine 
19 
of Three thousand pesos (Php3,000.00) for an individual and Five Thousand pesos 
20 
(Php5,000.00) for a corporation, for each day of operation without a certificate of 
21 
accreditation. 
22 
, 
23 
Section 62. Failure to Post License to Operate.-
Any LPG industry 
24' 
participant concerned who fails or refuses topost its Safety Compliance Certificate as 
25 
required under Chapter III of this Act and as required by the DTl, shall be penalized 
26 
with a fine not exceeding Five thousand pesos (Php5,000.00) for each instance of 
27 
violation. 
28 
29 
Section 63. Failure to Submit Reportorial Requirements.-Any LPG industry 
30 
participant concerned who fails to submit periodic reports as may be required by the 
31 
DTI or DOE, within a reasonable period and in the manner prescribed, shall be 
32 
penalized with a fine of Ten thousand pesos (Php10,000.00) for an individual and 
33 
Twenty thousand pesos (Php20,000.00) for partnership or corporation for each 
34 
instance plus a surcharge not exceeding One thousand pesos (Php 1,000.00) for an 
35 
individual and Five thousand pesos (Php 5,000.00) for a partnership or corporation 
36 
for each day of delay of submission. 
37 
38 
Section 64. Failure to Comply with Weighing Device Requirements.-
Any 
39 
refiner, importer, refiller, dealer or retail outlet who fails to comply with the 
40 
requirements pertaining to weighing devices under Chapter VII of this Act, shall be 
41 
penalized with a fine of Ten thousand pesos (Php 10,000.00) for an individual or 
42 
Twenty thousand pesos (Php 20,000.00) for a corporation. 
43 
26 


-------------------~-
• 
< • 
Section 6S. 
Overloading.- Any hauler who loads and transports, or permits 
2 
the loading and transportation of LPG cylinders quantities greater than the rated 
3 
capacity of the vehicle or in such a manner that endangers the life and safety of its 
4 
passengers or the public, shall be penalized with a fine of Twenty thousand pesos 
5 
(Php 20,000.00) for an individual and Fifty thousand pesos (Php SO,OOO.OO) for a 
6 
corporation: Provided, That the penalties provided herein shall be without prejudice 
7 
to its liability under other laws for any damage or injury to person or property. 
8 
9 
Section 66. 
Refusal to Refund the Deposit.- Any authorized dealer or retail 
10 
outlet that refuses, either deliberately or without any justifiable ground, to refund 
II 
the deposit on the LPG cylinder to any consumer shall be administratively charged 
12 
and upon proper proof, shall be imposed a fine of One Thousand Five Hundred 
\3 
Pesos (Phpl,SOO.OO) for each LPG cylinder and a warning that its Safety Compliance 
14 
. Certificate shall be suspended or revoked: Provided, That second and subsequent 
IS 
violations thereof shall be imposed a fine of Three Thousand Pesos (Php3,000.00) per 
16 
LPG cylinder and the suspension and revocation of its Safety Compliance 
17 
Certificate. 
18 
19 
Section 67. 
Non-participant in the LPG Cylinder Exchange, Swapping and 
20 
Rehabilitation Program.- Any LPG refiner, importer, bulk supplier, refiller, dealer 
21 
or retail outlet that deliberately refuses to participate in the LPG Cylinder Exchange, 
22 
Swapping and Rehabilitation Program under Chapter XI of this Act shall be charged 
23 
administratively and the suspension or revocation, after due notice and hearing, of 
24 
its Safety Compliance Certificate. 
25 
26 
Section 68. Maximum Imposable Fine.- The principal or alternative penalty 
27 
of fine that may be imposed for any violations of this Act shall not exceed the 
28 
maximum of One Million Pesos (Phpl,OOO,OOO.OO) for an individual and Two Million 
29 
and Five Hundred Thousand Pesos (Php2,SOO,000.00) for a corporation. 
30 
31 
Section 69. 
Suspension or Revocation of Local Business License or Mayor's 
32 
Permit.- The penalties provided herein shall be without prejudice to the suspension 
33 
or revocation of the local business license or Mayor's permit issued by the 
34 
appropriate LGU to the LPG industry participant concerned as provided in Chapter 
35 
III of this Act. 
36 
37 
Section 70. 
Imposition of Administrative Penalty.- The DTI may, in lieu of 
38 
the institution of a criminal action in the proper court, impose an administrative 
39 
penalty ranging from Twenty thousand pesos (Php 20,000.00) to Five hundred 
40 
thousand pesos (PhpSOO,OOO.OO) for each offense in this. Chapter and such other 
41 
violations of this Act. 
42 
43 
Section 71. 
"Strike Three" Penalty.- Any person convicted with finality of 
44 
serious violations of the provisions of this Act for three (3) instances shall be 
27 


• 
• 
1 
perpetually disqualified from engaging in any activity in the LPG industry: Provided 
2 
. That, two (2) instances of less serious violations shall be considered as an instance of 
3 
serious violation of this' Act. 
4 
Section 72. 
Publication of Persons Convicted of Violations of this Act.-
5 
Upon order of a court of competent jurisdiction, the DTI may, on a quarterly basis, 
6 
publish in a newspaper of general circulation the names of LPG industry 
7 
participants convicted with finality of serious and less serious violations of this Act. 
8 
9 
Section 73. 
Violations by Juridical Entities.- If the violation is committed by 
10 
a corporation, partnership, association, or other juridical entity, the penalty of 
11 
imprisonment shall be imposed on the responsible directors or officers thereof. If the 
12 
offender is an alien, he shall be deported immediately without further proceedings, 
13 
after service of sentence. 
14 
15 
16 
17 
18 
CHAPTER XIV 
EDUCATION AND RESEARCH 
. 19 
Section 74. 
Usage Requirements for Customers and End-users.- The DOE 
20 
and DTI shall jointly undertake educational and information dissemination activities 
21 
to enhance customer awareness among LPG consumers and end-users. In addition 
22 
to such educational program, the DOE and DTI, after consultation with the LPG 
23 
Industry Monitoring and Inspection Committee, may prescribe rules and regulations 
24 
in relation to the following: 
25 
(a) For industrial or large end-users, installation of sign at storage facilities; 
26 
(b) Use of only branded, legally filled and certified LPG cylinders; and 
27 
(c) Installation of LPG appliances and devices approved by the DTI: Provided 
28 
That such appliances and devices shall be installed only by qualified servicemen as 
29 
provided in this Act. 
30 
31 
Section 75. 
Public Information Campaign.- The DTI shall, in coordination 
32 
with the Philippine Information Agency, the DILG and such other appropriate 
33 
government agencies, develop and implement and effective strategy for the 
34 
dissemination 6f information to the public about LPG cylinder quality and safety. 
35 
36 
Section 76. 
Development Research.- The DOE shall in coordination with the 
37 
DOST and DTt conduct study and research for the purpose of developing more 
38 
efficient methods of providing safe, clean and hazard-free LPG consumers. 
39 
40 
41 
42· 
43 
CHAPTER XV 
FINAL PROVISIONS 
28 


2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
• 
Section 77. 
Implementing Rules and Regulations.-
Unless otherwise 
expressly p'rovided in this Act, the LPG Industry Monitoring and Inspection 
Committee, in consultation with the LPG industry participants and consumer 
groups, be the lead agency with the responsibility to formulate, issue and 
promulgate the necessary implementing rules and regulations within One Hundred 
Eighty (180) days from the effectivity of this Act. The Implementing Rules and 
Regulations may only be published to attain effectivity upon requisite approval by 
the Secretary of DTI and the President of the Philippines. 
. Section 78. 
Transition Phase. - In order to provide a smooth implementation 
of the monitoring and supervisory mechanisms provided herein, the LPG industry 
participants shall be given a grace period of one hundred eighty (180) days from the 
effectivity of the Implementing Rules and Regulations of this Act, within which to 
comply with the provisions hereof, except the requalification, embossing and! or 
production of new LPG cylinders with embossed or permanently marked brand 
name; Provided, That during the transition period, the LPG industry participants 
shall continue to be bound and made liable under the provisions of existing laws, 
rules and regulations not otherwise repealed by this Act. LPG industry participants 
already legally engaged in business upon the effectivity of this Act and who are 
required to secure a Safety Compliance Certificate prior to the renewal of their 
business licenses or permits as provided in Chapter IUof this Act shall not be 
required to obtain a Safety Compliance Certificate for the duration of the grace 
I 
period: Provided further, That all generic LPG cylinders in circulation at the time of 
the effectivity of this Act shall be excluded from the application thereof, except those 
LPG cylinders duly determined to be unfit for further use which shall accordingly be 
subjected to requalification or scrappage. 
27 
Section 79. 
Joint Congressional Oversight Committee.- There is hereby 
28 
created a Joint Congressional Oversight Committee to monitor the implementation 
29 
of this Act. The committee shall be composed of five (5) representatives to be 
30 
appointed by the Senate President and the Speaker of the House of representatives, 
31 
respectively. The oversight committee shall be jointly chaired by the chairpersons of 
32 
Senate Committees on Trade Industry and Energy: Provided, That the Minority of 
33 
both the Senate and the House of Representatives shall be equitably represented 
34 
therein. The mandate given to the Joint Congressional Oversight Committee under 
35 
this Act shall be without prejudice to the performance of the duties and functions by 
36 
the respective existing oversight committees of the Senate and the House of 
37 
Representatives. 
38 
39 
Section 80. 
Legal Assistance to Public Officials.- Public officials and other 
40 
authorized persons acting under the directions of the Secretaries of DOE, the DTI, 
41 
the DILG and other concerned government agencies shall be provided with free 
42 
legal 
assistance, 
liability insurance and other forms 
of protection and 
43 
indemnification for all costs and expenses reasonably incurred by such persons, in 
44 
connection with any civil and! or criminal action suit or proceeding to which they 
4'5 
may be or have been made a party by reason of the regular performance of their 
46 
official functions or duties, unless they are finally adjudged in such action or 
47 
proceeding to be liable for gross negligence or misconduct or grave abuse of 
48 
discretion. 
49 
29 


· .,. 
Section 81. 
Separability Clause.- If for any reason, any chapter, section or 
2 
provision for this Act shall be declared unconstitutional, illegal or invalid, such parts 
3 
not affected thereby shall remain in full force and effect. 
4 
5 
Section 82. 
Repealing Clause-
All 
laws, 
decrees, 
executive 
orders, 
6 
proclamations and administrative regulations, or parts thereof inconsistent herewith 
7 
are hereby repealed or modified accordingly.· 
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Section 83. 
Effectivity. - This Act shall take effect after fifteen (15) days 
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following its publication in the Official Gazette or at least two (2) newspapers of 
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general circulation. 
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Approved. 
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