QuestionsQuestions (PRESIDENTIAL DECREE NO. 1865)
PD 1865 amends BP Blg. 33 by expanding the prohibited acts involving petroleum and/or petroleum products (including shortselling/underdelivery, adulteration, and related acts), and by increasing administrative and criminal penalties to better curb these practices.
Adulteration of finished petroleum products, or possession of adulterated finished petroleum products for sale, distribution, transportation, exchange, or barter.
It prohibits underdelivery/underfilling beyond authorized limits and also penalizes possession of underfilled LPG cylinders for purposes such as sale, distribution, transportation, exchange, or barter.
The oil company, petroleum refiller, marketer, dealer, and retailer (as the case may be), and the hauler are responsible for the quantity and quality of the petroleum product delivered.
The law provides presumptions that certain conditions indicate unlawful intent or improper conduct, including presumptions of sale intent, pump/ cylinder underdelivery or adulteration, and prima facie evidence of intent to defraud when the relevant pumps/cylinders/containers are used to deliver products.
They are presumed to be for sale by marketers, dealers, sub-dealers, or retail outlets and accessible to the public.
The absence of an out-of-order sign or padlock attached/affixed to the pump to prevent delivery constitutes a presumption of actual use of the pump in the sale or delivery.
It gives rise to presumptions that the pump is underdelivering, the cylinder is underfilled, or the tank truck contains adulterated finished petroleum products or is underfilled.
Using such pumps, cylinders, or containers to deliver products for sale or distribution constitutes prima facie evidence of intent of the hauler, marketer, refiller, dealer, or retailer outlet operator to defraud.
It includes selling/distributing without the required license/authority; non-issuance of receipts by licensed traders/oil companies/marketers/distributors/dealers/sub-dealers/retail outlets (with special requirements for gas cylinders); unauthorized refilling of LPG cylinders; making/using false tare weights; and other specified violations, including use of uncalibrated/unsealed metering units and unregistered/unproperly calibrated and sealed delivery vehicles/containers.
It is mixing any petroleum product with another petroleum (finished/unfinished) or stock or with a non-petroleum substance/material resulting in quality change or failure to meet required specifications. The definition does not apply to alcogas mixtures and oil emulsions.
It refers to sale/transfer/delivery/filling of petroleum products of a quantity actually beyond authorized limits, i.e., beyond the quantity indicated or registered on the metering device of the container (including metered dispensing pumps, LPG cylinders, and lube oil packages).
It empowers the Bureau of Energy Utilization to issue rules/regulations and to impose administrative sanctions after notice and hearing: a fine not more than PHP 10,000, or suspension/removal of the license/permit of the hauler/marketer/refiller/dealer/sub-dealer/retail outlet (and hearing may be waived by respondent).
During the pendency, the Bureau may suspend business operations when consistent with public interest; it must decide administrative proceedings within 30 days after filing the last responsive pleading (or termination/completion).
It increases the fine range to not less than PHP 20,000 and not more than PHP 50,000, and imprisonment to at least 2 years and not more than 5 years (or both, at court discretion). The subject petroleum/petroleum products may be forfeited, and if delivered/paid for, the offended party indemnified twice the amount paid; if seller was fully paid but not yet delivered, price must be returned with an additional amount equivalent to the price. It also authorizes cancellation of license for oil companies/marketers/refillers/dealers/sub-dealers/retail outlets or haulers when the offender is such an entity.
Trials must be terminated within 30 days after arraignment. For corporate offenders, specified officers/managers or responsible employees are criminally liable. If the offender is an alien, he/she is subject to deportation after serving the sentence. If the offender is a government official/employee, he/she shall be perpetually disqualified from office.