Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

House BILLNo._1822

Introduced by Honorable Rodante D. Marcoleta

EXPLANATORY NOTE

Since the passage of RA 8479 deregulating the price of petroleum products
including LPG, the price of the latter has more than doubled, Even as the law
mandated the Department of Energy (DOE) to monitor the international and domestic
prices of crude and petroleum products, the pricing is left to the oil/LPG companies

and their dealers and retail outlets.

While the DOE has lately been successful in persuading most companies to
implement price adjustments of liquid petroleum products in small increments, the
situation is not true for all players in the LPG business, Some players have been noted
to implement the full impact of increases in the benchmark monthly contract price
(CP) in Saudi Arabia at the beginning of the month, but only smaller increments are

implemented during times of downward CP movements.

It is recognized that domestic prices are dependent on the price in the
international market and the peso exchange rate. However, certain mechanisms may
have to be put in place to protect the welfare of the consuming public from abuse by

unscrupulous local LPG industry players.

Even as liberalization of the downstream oil industry has been the policy
adopted by our government, the urgent passage of this bill is earnestly sought to

provide a mechanism to ensure reasonable prices and timely adjustments for LPG.

RODANTE BD


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILL NO. i ia 22
es es

Introduced by Honorable Rodante D. Marcoleta

AN ACT TO PROTECT THE FILIPINO CONSUMER
FROM ARBITRARY INCREASES IN THE PRICES OF LPG BEING CHARGED
BY THE PLAYERS OF THE LPG INDUSTRY, AMENDING FOR
‘THIE PURPOSE SECTIONS 19 AND 14 OF R.A. 8479, OTHERWISE KNOWN A
DOWNSTREAM OIL INDUSTRY DEREGULATION LAW OF 1998

SECTION I. Section 19 of Republic Act No. 8479 is hereby amended by adding
another paragraph to read as follows:

"Providing further, that effective immediately, the price of LPG has to be
guided by an Automatic Pricing Mechanism (APM). Such APM shall be
determined by the Energy Regulatory Commission (ERC), after prior
notice and hearing, within six (6) months from the effectivity of this bill.

To ensure that only safe and qualified LPG cylinders are put in circulation,
the APM shall provide for cylinder repair and maintenance cost.”

SECTION 2. The functions of the Department of Energy-Department of Justice
(DOE-DOJ) Task Force shall be transferred to the ERC. Thus, Sec. 14 (d) of the same
law is hereby amended to read as follows:

"Any report from any person of an unreasonable rise in the prices of LPG shall be
immediately acted upon. For this purpose, the ERC is hereby mandated to determine
within thirty (30) days the merits of the report and initiate the necessary actions
warranted under the circumstances; Provided, that nothing herein shall prevent the ERC
from investigating and/or filing the necessary complaint moto propio.

SECTION 3. Implementing Rules And Regulations - The ERC, in coordination
with the DOE and other concerned government agencies, shall formulate and issue the
necessary implementing rules and regulations within sixty (60) days after the effectivity
of this Act.

SECTION 4. Repealing Clause - All laws, Presidential Decree, executive
orders, issuances, rules and regulations or parts thereof, which are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SECTION 5. Effectivity - This Acts shall take effect fifteen (15) days after its
complete publication in at least two (2) newspapers of general circulation.

Approved,