LPG importation and trade regulations

Key terms defined include: Commission (Oil Industry Commission), Act (Republic Act No. 6173), LPG (commercial propane and butane gas), Marketer, Consumer, LPG Cylinder, Person, Filipino Citizen, Dealership Agreement, Filling Plant, and Qualified Serviceman.

No person/entity may engage in LPG business activities without a license from the Commission.
Marketers, dealers, sub-dealers, and retail outlets operating prior to the rules' effectivity can be licensed through payment of annual fees.
Installation of LPG equipment requires a separate license.
Dealership agreements can be transferred only with consent and Commission approval.

Producers: LPG importers or refineries producing LPG (e.g., Bataan Refining, Caltex, Shell).
Marketers: Classified as LPG importers, oil companies, LPG marketing companies, and independent marketers.
Refiller: Persons/entities operating filling plants, authorized to refill LPG cylinders.
Dealers: Authorized sellers of LPG brands, categorized as Class A (no volume limit) and Class B (max 4,000 kg/month).
Sub-dealers: Buy LPG from dealers for resale to retail outlets or consumers.
Retail Outlets: Sell directly to consumers but do not service or deliver LPG.

LPG must meet Philippine Bureau of Standards specifications.
Producers/importers must guarantee continuous supply subject to raw material availability.
LPG export is subject to Commission approval and conditions ensuring surplus and supply adequacy locally.

LPG importers and oil companies must have resources, qualified personnel, equipment, and facilities.
Marketing companies require minimum capitalization of P2M, supply agreements, and adequate facilities.
Independent marketers require minimum capitalization of P200,000, supply agreements, qualified personnel, and facilities.
Marketers must procure cylinders only from licensed manufacturers and maintain procurement records.

Must be Filipino citizens, possess filling plants or contracts to operate them.
Required to have weighing devices and licensed engineers.
Responsible for accurate filling, safety compliance, leak testing, and authorization from brand owners.
Entities marketing LPG under a brand must be licensed as both refiller and dealer.

Dealers must be Filipino citizens with minimum capital (P50,000 for Class A, P20,000 for Class B) and supply agreements.
Dealers must maintain adequate storage, vehicles, and qualified servicemen.
Sub-dealers require Filipino citizenship, minimum capital of P10,000, storage, delivery equipment, supply agreements, and employ at least one qualified serviceman.
Dealers and sub-dealers may carry only one brand and operate within contracted territories.

Defined as direct sellers to end-users, without delivery or servicing roles.
Must be Filipino citizens with minimum capital of P500 or retailer license.
Maximum inventory limited to 150 kg in cylinders of 15 kg capacity or less.
Obliged to refer cylinder deposit refunds to their dealer or sub-dealer.
Must display their license and are prohibited from transporting or delivering LPG.

Applications must be written, verified, and detail applicant information, business type, and location.
Accompanying documents include feasibility studies, plans, facility lists, corporate documents, and dealership agreements.
Defective applications must be corrected within 30 days or will be returned.
Public notice and posting requirements apply, with opportunities for opposition within 30 days.
Hearings are conducted following Oil Industry Commission procedures.
Licenses effective for five years or co-terminous with dealership contracts, renewable upon application.
Grounds for revocation include non-compliance and unauthorized supply sources.

Contracts, facilities, and equipment must be registered within specified periods.
Registration responsibilities are designated according to parties (producers, marketers, dealers, etc.).
Business styles and product brand names must be registered with relevant government agencies.

Free inspection and technical assistance must be provided by persons engaged in LPG sale and distribution except retail outlets.
Installers must provide safety instructions to customers.
LPG installations must conform to zoning laws.
Cylinders must be kept in safe, clean condition and comply with recognized safety codes.
Transport vehicles must securely fasten cylinders.
Until local standards are formulated, international safety codes apply.

Periodic inspections of LPG-related businesses and facilities are mandatory.
Inspection teams comprise representatives from the Commission, producers/importers/marketers, and dealers.
Reports must be submitted within 15 days.

Cylinders can only be filled at licensed plants.
Unsafe or dirty cylinders must be set aside for repair before refilling.
Cylinder deposit refunds are to be honored upon verification.
Cylinder loan agreements may govern loaned cylinders.
Industry participants must display licenses, personnel IDs, and mark delivery vehicles.
Product liability insurance is encouraged for direct sellers.
Deposit amounts for cylinders cannot exceed 90% of their cost.
Cooperation during emergencies is mandated to maintain supply.
Consumer cylinder exchanges among brands must be facilitated free of charge.
Weighing scales are mandatory for all except retail outlets and sub-dealers.
Disputes under dealership agreements fall under Commission jurisdiction.
Dealership agreements must comply with specified fairness and non-restriction criteria.
Renegotiation of dealership contracts procedures are provided.

Application, registration, and license fees are prescribed according to type of participant and facilities.
Fees payable upon application, registration, and issuance/renewal of licenses.

Rules take effect 15 days after publication in the Official Gazette.
Amendments require approval of at least three Commissioners and subsequent publication.