QuestionsQuestions (PRESIDENTIAL DECREE NO. 1727)
It is the “LPG Industry Rules.” It applies to and must be strictly complied with by all persons engaged or intending to engage in importing, refining, refilling, marketing, distributing, hauling/transporting, handling, storing, retailing, selling and/or trading of LPG.
No person may engage in any Industry Activity without a valid SCC. A provisional SCC may be issued to a new industry participant solely to obtain a mayor’s/business permit, but the authenticated copy must be submitted within 30 days; otherwise it is automatically revoked.
The SCC is valid for a maximum of three calendar (3) years from issuance, renewable not later than end of March of the third year; it is site/plant/outlet specific; and SCC holders may transact only with other industry participants who also have valid SCC.
(a) For refiners/importers/refillers: includes DTI/SEC registration, zoning/locational clearance, barangay business clearance, building permit, DENR ECC, mayor’s/business permit, fire safety inspection certificate, permit to operate unfired pressure vessel (DOLE), product liability insurance, and other specialized technical documents (e.g., plant layout, standards/codes, engineering certification for refillers, supply contract, vehicle list, permit to import). (b) For marketers: DTI/SEC registration, brand registration, barangay business clearance, building permit/lease, mayor’s/business permit, fire safety certificate, product liability insurance, authorized dealer/retail outlet list, and supply contract/vehicle list. (c) For dealers: DTI/SEC registration, barangay clearance, building permit/lease, mayor’s/business permit, fire safety certificate, supply agreement/certification from brand owner/marketer, authorized retail outlet list, and vehicle list.
They must submit: (1) Annual reports (e.g., list of facilities/capacities and vehicles, suppliers/customers and volumes, supply/refilling arrangements, qualified personnel, LPG cylinder inventory, schedules of acquisition/requalification/repair/scrappage, and permits for changes/new facilities); (2) Monthly reports (supply, demand/sales/consumption/throughput/refilling volume, and inventory); and (3) Special reports as required by OIMB.
Grounds include: failure to comply with Rule II requirements; refusal to allow OIMB inspection; failure to pay DOE-imposed fines; or transacting business with other industry participants without a valid SCC.
For bulk: comply with latest Fire Code/NFPA Pamphlet 58 (LPG Code), Philippine LPG Association Safety Code, and applicable DOE issuances. For cylinders: comply with pertinent DOE issuances on the subject.
Those engaged in selling/supplying/hauling/storing/handling/marketing/distribution of LPG for automotive use must comply with DOE DC No. 2007-02-0002 and its future amendments.
They must: fill cylinders accurately and perform test weigh and leak test for every cylinder before leaving; ensure proper sealing before leaving the plant; refill only cylinders complying with PNS; not refill single-trip/tin canister/cartridge; refill under their own brand and/or other brands only with prior written authorization from/with brand owners; and conform to safe LPG handling practices prescribed by the Circular.
They must carry their own brand of LPG; ensure adequate/time supply; ensure correct weight of cylinders delivered; procure new cylinders only from reputable licensed manufacturers and use only cylinders with proper markings (e.g., Globe checkmarks or ICC); have new cylinders embossed with registered brand; register with OIMB and exclusively use a distinguishing color/marking scheme; register their seals and seal suppliers with OIMB; maintain/repair cylinders under their brand through accredited requalifiers/repairers in conformity with PNS; and register/ensure proper vehicle registration and issue official receipts.
The brand owner whose permanent mark appears on the LPG cylinder is presumed the owner, regardless of custody or possession and regardless of whether the cylinder remains properly marked or compliant, absent unequivocal proof. The brand/cylinder owner must ensure quality and safety before release, but a verified notice/report of lost/stolen/missing cylinders to DOE may relieve them (prima facie), subject to rebuttal.
They must keep their cylinders in safe, clean, serviceable condition and maintain consistent with adopted safety codes; cylinders must conform with PNS 03. They must carry product liability insurance to answer for damages/liabilities arising from unsafe conditions of LPG cylinders.
Illegal trading includes operating without SCC, failure to post SCC, transacting with others without valid SCC, refusal/obstruction of inspection, sale of non-PNS cylinders, failure to comply with standards/weighing device requirements, illegal possession/use of unregistered/inappropriate seals, sale/distribution without proper/tampered seals, refilling in prohibited containers (single-trip/tin canister/cartridge), illegal storage without SCC, pilferage, tampering, overloading, and hoarding. Illegal refilling includes refilling by someone other than the brand owner without permission, “pirate/cross-filling,” refilling without proper embossed markings or with defaced/tampered markings, refilling due for repair/requalification/scrappage or under recall/prohibition, backyard refilling, filling from tanks without approved filling machines, using wrong equipment, and other specified violations.
Underfilling is when the net quantity of LPG in cylinders offered for sale/sold/delivered/filled is less than the DOE-required content and/or marked net content. Prima facie evidence includes broken/tampered/absent/removed seal or a cylinder containing less than required quantity not identified and set apart or removed from sales area by dealers/retail outlets. The Circular provides specific thresholds: for 21–29 liter capacity cylinders, not less than 11.0 kg at refilling plant; sold to consumer not more than 0.3 kg less than 11.0 kg; shortage beyond 0.3 kg per cylinder is underfilling; for other sizes, allowable deviation must not exceed 0.3 kg from indicated net weight.
OIMB and DOE Field Office inspectors monitor/inspect industry participants for compliance. They may take custody or impound LPG cylinders found in violation for public welfare and evidence until disposition is finally determined via applicable administrative/civil/criminal proceedings, often with assistance from agencies like the PNP or NBI.
(a) Engaging in any LPG industry activity without a valid SCC: P60,000. (b) Refusing, preventing, or obstructing inspection: P50,000.
LPG-filled cylinders with seals (authorized or unauthorized) or inappropriate cylinders are presumed to be for delivery/sale. Cylinders displayed by dealers/retail outlets are presumed for sale. Any industry participant found possessing LPG cylinders containing violations described as prohibited acts is presumed liable. Apprehended/intercepted LPG-filled cylinders with prohibited violations are presumed for sale/delivery/distribution, with liability on the owner.