Question & AnswerQ&A (ERB)
The rules and regulations govern the importation, production, marketing, handling, storage, sale, business and trade of Liquefied Petroleum Gas (LPG).
An LPG cylinder must have a minimum capacity of 2-kilogram net content LPG and a maximum capacity of 100-kilogram net content LPG, conforming to specified international standards.
An LPG marketer is classified as an LPG importer, oil company LPG marketing company, or independent marketer engaged in buying, selling, and marketing LPG under their brand names.
Yes, no person or entity may engage in these activities unless they have filed an application and received a license or authority from the Oil Industry Commission.
It must be a Filipino citizen or authorized person/entity, have a minimum paid-up capitalization of ₱2,000,000, and have a supply agreement with a registered producer, importer or oil company. It must also have adequate office, plant, storage with a minimum of 50,000 kilograms LPG capacity, one bulk transport, and sufficient qualified licensed personnel.
A dealer cannot carry more than one brand of LPG nor operate outside the area specified in the contract with his marketer. Storage must be within the operation area unless approved by the Commission.
Grounds include failure to comply with license conditions, sourcing LPG from unlicensed suppliers, violation of Republic Act No. 6173 or these rules, and voluntary withdrawal or cessation of business.
A retail outlet may carry a maximum total inventory of 150 kilograms of LPG contained in cylinders not exceeding fifteen (15) kilograms capacity each.
A verified written application must be filed, containing jurisdictional facts, applicant's name and address, type of activity, business location, business name, and, if dealer/sub-dealer, the name of the marketer or dealer collaborated with. The application must be accompanied by supporting documents such as project studies, plans, and corporate papers.
Registration responsibility lies with persons in connection to the contracts/facilities: producers/importers register contracts with marketers; oil companies with dealers/marketing companies/refillers; dealers with sub-dealers and retail outlets; and owners register facilities and equipment.
They must provide free inspection and technical assistance to ensure safety compliance, respond to emergencies, ensure initial installation instruction for safe handling, keep cylinders in safe condition consistent with safety codes, and use only approved cylinders and equipment.
It is unlawful to require deposits exceeding 90% of the acquisition cost of the cylinder and valve, and violating this provision can lead to revocation of license or other sanctions by the Commission.