Title
Amendment Penalizing Petroleum Offenses
Law
Presidential Decree No. 1865
Decision Date
May 23, 1983
Presidential Decree No. 1865 amends Batas Pambansa Blg. 33 to address prohibited acts involving petroleum and petroleum products in the Philippines, aiming to protect the public by penalizing illegal trading, adulteration, underdelivery, hoarding, overpricing, and misuse of allocation, among others, with fines, imprisonment, and forfeiture of products.
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Definitions of Key Terms

  • Illegal trading includes unlicensed sale or distribution, non-issuance of receipts to final consumers, unauthorized refilling of LPG cylinders, and unauthorized use of tare weights.
  • Petroleum fuel product adulteration involves mixing petroleum products with other substances causing a change in quality or failure to meet standards.
  • Underfilling or underdelivery means delivering less petroleum product than the quantity indicated or authorized.
  • Hoarding refers to unjustified accumulation or refusal to distribute petroleum products.
  • Overpricing is selling petroleum products in excess of government-authorized prices.
  • Misuse of allocation is the improper sale, transfer, or diversion of government-mandated petroleum fuel allocations.

Rules and Regulations; Administrative Sanctions

  • The Bureau of Energy Utilization (BEU) issues rules and regulations to implement the law.
  • BEU may impose administrative fines up to ₱10,000, suspend or revoke licenses of violators after due process.
  • Business operations may be suspended during administrative proceedings if public interest demands.
  • Administrative sanctions do not preclude filing criminal charges.

Penalties for Violations

  • First conviction: fine between ₱20,000 and ₱50,000, or imprisonment from 2 to 5 years, or both.
  • Second and subsequent convictions: mandatory fine and imprisonment.
  • Forfeiture of the petroleum or products involved, with indemnification to wronged parties when applicable.
  • Cancellation of license for offenders who are companies, marketers, dealers, haulers, etc.
  • Trials must be terminated within 30 days after arraignment.
  • Corporate officers or responsible employees are criminally liable for violations.
  • Alien offenders may be deported after serving sentence.
  • Government officials violating provisions are permanently disqualified from office.

Repealing Clause and Effectivity

  • All laws, decrees, orders, and regulations inconsistent with this Decree are repealed or modified accordingly.
  • The Decree takes effect immediately upon approval.

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