Law Summary
Legal and Regulatory Background
- R.A. No. 8479 mandates deregulation for a competitive market with fair prices and quality petroleum products.
- R.A. No. 8749 requires DOE and relevant agencies to set fuel standards and phase out lead in gasoline.
- The Clean Air Act established the Technical Committee on Petroleum Products and Additives to develop fuel standards.
- R.A. No. 9367 mandates biofuel blending and sets minimum bioethanol content in gasoline.
Promulgation of National Standards for Gasoline
- PNS/DOE QS 001:2005 introduced unleaded motor gasoline standards with allowed octane boosters like ethanol (max 10%).
- PNS/DOE QS 008:2006 and later PNS/DOE QS 008:2009 provide standards for ethanol-blended gasoline (E-10).
- PNS/DOE QS 001:2009 established to clarify distinctions between conventional and ethanol-blended gasolines and address vehicle compatibility concerns.
Key Implementing Guidelines
- Effective November 16, 2009, only gasoline complying with PNS/DOE QS 001:2009 shall be sold or introduced into commerce.
- Oil importers must submit a Certificate of Quality within 20 days after unloading imports, including test results per the national standard.
- Gasoline station operators must label pumps dispensing regular gasoline with an advisory "NOT RECOMMENDED FOR VEHICLES WITH FOUR (4) OR MORE WHEELS."
- Octane numbers on dispensing pumps must feature the word "MINIMUM" below the number, per prior DOE circular requirements.
Registration and Monitoring Requirements
- Oil companies must register all new fuel additives and organo-metallic compounds used in gasoline with the DOE.
- Companies shall regularly monitor fuel quality at refineries, terminals, depots, tank trucks, and retail outlets.
- The DOE is authorized to conduct random sampling and testing for gasoline quality and quantity assurance from these locations.
Penalties and Enforcement
- Non-compliance with the Circular shall result in sanctions under applicable laws, rules, and regulations.
- Department Circular No. 2006-04-0005 is repealed, replacing it with this Circular.
- The Circular takes effect immediately upon publication in any newspaper of general circulation.