Title
LPG Industry Regulation Act Overview
Law
Republic Act No. 11592
Decision Date
Oct 14, 2021
The LPG Industry Regulation Act aims to regulate the LPG industry in the Philippines, ensuring the safety and quality of LPG cylinders and cartridges, and imposing penalties for prohibited acts such as illegal refilling and underfilling.

Law Summary

Declaration of Policy

  • Protects end-consumers' interests and general welfare.
  • Institutes reforms in LPG industry conduct standards.
  • Ensures health, safety, security, environmental, and quality standards across all LPG operations.
  • Promotes consumer awareness and education on LPG safety.
  • Upholds freedom of consumer choice regarding LPG cylinder trademarks.
  • Encourages technological innovation in the LPG industry.

Scope and Application

  • Covers activities involving importing, refining, storing, exporting, refilling, transporting, distributing, and marketing LPG.
  • Applies to LPG pressure vessel management (import, manufacture, requalification, repair, exchange, scrappage).
  • Applies to safe operations in all LPG facilities and varied LPG uses.

Definition of Terms

  • Defines key concepts such as LPG, LPG pressure vessels, cylinders, cartridges, bulk suppliers, distributors, refilling plants, marking types, industry participants, and many other technical terms.
  • Adulterated LPG means LPG mixed with substances that affect quality and violate Philippine National Standards (PNS).
  • Detailed definitions include various participant roles like license to operate, haulers, marketers, dealers, and more.

Role of Government Agencies

  • DOE is lead agency enforcing this Act regarding licensing, standards, investigation, enforcement, and public information.
  • DTI develops and enforces PNS standards, certifies manufacturers and service providers.
  • DILG coordinates local implementation and assists enforcement.
  • BFP ensures fire safety compliance and regulates transportation safety with DOE and LTO.
  • LTO and LTFRB regulate motor vehicles and public utility vehicles using LPG.
  • MARINA governs marine transport of LPG.
  • LGUs assist with enforcement, impoundment, and suspension of business permits.
  • PNP and other law enforcement assist in inspections and enforcement.
  • DENR issues environmental guidelines regarding disposal.

Responsibilities of LPG Industry Participants

  • All participants must comply with PNS and safe handling standards.
  • Bulk suppliers and distributors must ensure LPG supply stability and submit contracts to DOE.
  • Haulers must maintain authorized vehicles and submit contract certifications.
  • Refillers must perform accurate filling, conduct safety tests, and refuse noncompliant cylinders.
  • Trademark owners/marketers manage supply, cylinder maintenance, seals, technical assistance, and compliance monitoring.
  • Dealers and retail outlets must sell only authorized LPG with corresponding seals and proper measuring devices.

Registration, Licenses, and Permits

  • Bulk suppliers, refillers, and bulk consumers must register with DOE before construction of major facilities.
  • All participants need a license to operate specific activities/sites before commercial operation, valid for three years.
  • Existing operators must secure licenses within six months after IRR issuance.
  • DTI certificates and licenses are required for relevant activities related to LPG pressure vessels.

Auto-LPG Regulatory Requirements

  • Importers, manufacturers, conversion shops, and dispensing stations must comply with quality and safety standards issued by DTI, DOE, LTO, BFP, and other agencies.

Ownership of LPG Pressure Vessels

  • Trademark owners have ownership and responsibility over LPG cylinders marked with their trademark.
  • Ownership responsibilities include ensuring compliance with standards.
  • Auto-LPG containers are the property of the motor vehicle owner where permanently installed.

LPG Cylinder Exchange, Swapping, and Improvement Programs

  • DOE to formulate and implement LPG Cylinder Exchange and Swapping Program within six months from IRR effectivity.
  • Principles include consumer freedom of choice, safety prioritization, fair contract terms, and industry-wide participation.
  • DOE to formulate LPG Cylinder Improvement Program to manage generic cylinder safety, fund establishment, marking, and requalification.
  • Programs aim to systematically improve quality, safety, and ownership clarity of LPG cylinders.

Monitoring and Enforcement Mechanisms

  • DOE collects written or electronic reports from participants but protects trade secrets and confidential information.
  • DOE maintains a publicly accessible central database with industry participant information, trademark registrations, safety violations, and cylinder status.

LPG Cylinders and Cartridges

  • DOE may confiscate or prohibit uncertified, defective, unsafe, generic, or substandard LPG cylinders or cartridges after due process.
  • Illegal refilling or sale of noncompliant LPG cartridges is prohibited.

Transport of LPG

  • All vehicles transporting bulk or cylinder LPG must comply with DOE, LTO, and BFP guidelines.

Prohibited Acts and Penalties

  • Prohibitions include unauthorized activity, manufacturing, selling without licenses or permits.
  • Prohibition on selling LPG cylinders without authorized seals or improperly marked.
  • Prohibits adulteration, pilferage, underfilling, illegal refilling, and other unsafe or fraudulent acts.
  • Various administrative and criminal penalties established with graduated fines, suspensions, closures, and imprisonment depending on offense severity and repetition.
  • Corporate officers may be criminally liable.

Administrative Enforcement Procedures

  • DOE issues show cause orders and final resolutions within 60 days.
  • Preventive suspension of operations for up to 45 days may be ordered.
  • DOE may impound evidence of violations.

Final Provisions

  • Local government units receive 40% of collected fines for specific enforcement purposes.
  • Permitting process streamlined via Energy Virtual One Stop Shop Act.
  • DOE to establish dedicated office staffed and funded suitably for Act implementation.
  • DOE and DTI will promulgate implementing rules within 60 days.
  • Transition periods set for compliance but not beyond six months unless otherwise stated.
  • Congressional Joint Energy Commission exercises oversight.
  • Interpretation favors consumer protection.
  • Separability, repealing, and effectivity clauses provided.
  • The Act takes effect 15 days after publication.

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