Question & AnswerQ&A (PROCLAMATION NO. 341)
The act is referred to as the "LPG Industry Regulation Act."
The act aims to protect end-consumer interests, ensure their welfare, establish standards of conduct for the LPG business, implement health, safety, security, environmental, and quality standards, promote consumer education, support free choice of LPG trademarks, and foster technological innovation.
The Department of Energy (DOE) is the primary government agency responsible for implementation and enforcement of this Act.
The DOE prepares the LPG Industry Development Plan, ensures compliance with quality and safety standards, issues licenses to operate, imposes sanctions for violations, regulates LPG seals, creates a central database of LPG participants, and collaborates with other agencies to conduct awareness and research activities.
LPG industry participants include those engaged in importing, refining, storing, exporting, refilling, transporting, distributing, marketing LPG, manufacturing, requalifying, repairing, exchanging, improving LPG pressure vessels and ancillary equipment, among other LPG-related activities.
Every LPG industry participant must secure a license to operate from the DOE prior to commencing commercial operations, and publicly post such license at their business establishment.
It is a program formulated by the DOE and DTI to allow end-consumers freedom of choice in purchasing LPG-filled cylinders by facilitating cylinder exchange and swapping with accredited swapping centers, ensuring safety and fair competition.
Penalties include administrative fines ranging from at least Ten thousand pesos to One hundred thousand pesos per LPG pressure vessel or seal, confiscation of the LPG pressure vessels or seals, suspension or permanent disqualification from participation, and imprisonment ranging from six months to six years depending on the offense's frequency.
Illegal refilling includes unauthorized filling of cylinders from unlicensed sources, filling with substances other than LPG to meet weight, refilling cylinders with defaced or noncompliant markings, cross-filling without authorization, and refilling outside duly licensed refilling plants.
The Act applies to importing, refining, storing, exporting, refilling, transporting, distributing, and marketing LPG; importation, manufacture, requalification, repair, exchange, swapping, improvement, and scrappage of LPG pressure vessels; and the safe operations of the entire LPG industry including all facilities and residential, commercial, industrial, and automotive use of LPG.
Bulk suppliers must ensure adequate and stable supply of LPG in bulk and submit certifications of contracts or agreements with bulk consumers to the DOE within a reasonable period from execution.
The trademark owner whose permanent or durable marking appears on the LPG cylinders is responsible for ensuring compliance with quality and safety standards and requalification before the cylinders are distributed.
First offense: Fine of at least Five thousand pesos per day of operation. Second offense: At least Ten thousand pesos per day. Third offense: At least Twenty thousand pesos per day of operation without required licenses or permits.
The DTI develops and revises Philippine National Standards (PNS) for LPG facilities and equipment, accredits requalifiers, certifies manufacturers and repairers, issues licenses and certificates, and collaborates in regulatory enforcement and information campaigns.