Question & AnswerQ&A (DOE DEPARTMENT CIRCULAR NO. DC 2003-11-010)
It is known and cited as "The Rules and Regulations Governing the Business of Retailing Liquid Petroleum Products" or "Retail Rules."
Retailing of liquid petroleum products is governed under R.A. 8479, known as the "Downstream Oil Industry Deregulation Act of 1998."
All persons engaged or intending to engage in the business of retailing liquid petroleum products must comply with these Retail Rules.
"Bote-bote" refers to the retailing of liquid petroleum products using soda bottles, plastic containers, jugs, and other similar portable containers not intended or suited for storing, handling and dispensing liquid petroleum products.
Retailing shall be conducted in duly approved premises with an initial minimum lot area of 100 square meters.
No, liquid petroleum products shall not be dispensed from above-ground tanks, portable tanks, tank vehicles, drums, barrels, or similar containers such as "bote-bote." Dispensing must be through fixed and permanent pumps.
They must give Prior Notice in writing to the Oil Industry Management Bureau (OIMB) containing specified business information before engaging in the business.
Documents such as Fire Safety Inspection Certificate (BFP), facility design compliance statement, Mayor's permit (LGU), list of dispensing pumps and storage tanks with capacities, layout plan, and recent photographs must be submitted to the OIMB.
The owner/operator shall be deemed to be engaged in ILLEGAL TRADING and subject to fines and sanctions under the rules.
Dispensing pumps must be properly calibrated every sixty (60) days and sealed by a duly authorized calibrating entity.
Refusing to sell liquid petroleum products shortly before price increases or during tight supply when the buyer can pay in cash or undue accumulation of stocks beyond normal inventory levels in these periods.
For the first offense, a fine of P10,000.00 is imposed per act; a second offense results in another P10,000.00 fine; a third offense leads to recommended suspension or revocation of business permits.
Price display boards, signs requiring the switching off of cellular phones while filling, no smoking signs, switch off engine while filling signs, and other safety signs required by DOE and relevant authorities.
Class I flammable liquids have flash points below 37.8°C; Class II flammable liquids have flash points from 37.8°C up to but below 60°C; combustible liquids have flash points at or above 60°C.
Authorized entities include the Municipal or City Treasurer of LGUs, their authorized representatives at DOST-ITDI or other government agencies, or authorized representatives of the oil company.
It is deemed to be UNDERDELIVERING, subject to penalties and marking the pump as out of order until recalibrated and resealed.
They must file notice of start of business at least 5 days before operations, submit permits for new or renovated facilities before commissioning, report decommissioning 5 days prior, and submit annual updated lists of outlets to OIMB.
Retail Outlet owners/operators must take one-liter samples of each product delivered, seal them in OIMB containers, keep them for at least one month or until the third delivery thereafter for testing and verification.
They must comply with the Philippine National Standards (PNS), including prescribed color coding; non-compliance is prima facie evidence of product adulteration.