Rules on Petroleum Products Trading and Regulation

Key terms defined: Bureau (Bureau of Energy Utilization), Ministry (Ministry of Energy), Board (Board of Energy), Act (Batas Pambansa Bilang 33 and amendments).
Oil Company: Manufacturer, processor, and seller of multiple petroleum products (e.g., Caltex Philippines, Mobil Oil Philippines).
Marketer: Engaged in sale or trading of petroleum products including LPG, may or may not manufacture products.
Dealer: Authorized by oil companies or marketers to sell only their products.
Retail Outlet: Direct seller to consumers.
Hauler: Transporter of petroleum products.
Other agencies: NSTA (National Science and Technology Authority), PSA (Products Standard Agency).

No production, sale, transport, or processing of petroleum products without Bureau of Energy Utilization license.
Licenses must be renewed annually.
LPG refilling for profit requires specific registration and license; refilling of others’ cylinders requires written authorization.

Official receipts required for all transactions to final consumers, detailing seller, product type, quantity, price, and date.
LPG cylinder sales receipts must include brand, gross weight, tare weight, net weight, total price, and unit price per cylinder.

LPG Cylinders: Must be marked within 90 days with engraved/embossed weight (to 0.1 kg), owner’s trade name, color, and serial number.
Dispensing Pumps: Must be calibrated and sealed by authorized entities; uncalibrated or tampered pumps marked out-of-order and prohibited from use.
Transport Containers: Must be registered, calibrated, and sealed; removal or tampering of seals disqualifies use until recalibrated.
LPG Cylinders: Sealed after each filling within 180 days; unsealed cylinders or broken seals prohibit sale.

Unloading petroleum products only by buyer or authorized representative at buyer’s designated premises.
All valves and openings on transport containers sealed to prevent pilferage; broken seals imply underfilling or adulteration.

Petroleum products failing PSA specifications or mixed with water/substances beyond allowable limits are adulterated.
Adulterated products cannot be sold, distributed, transported, or possessed for such purposes.
Oil companies must take and keep storage tank samples, conduct periodic testing, and respond to dealer verifications.
Dealers must collect and keep samples or use hydrometer checks to detect adulteration.
Bureau inspectors authorized to require samples for testing.
Retail outlets must maintain storage tanks and periodically remove water.

Dispensing pumps must not underdeliver more than 50ml per 10 liters.
Daily pump testing by dealers with NSTA-certified buckets mandatory; corrective measures required for non-compliance.
Oil companies responsible for periodic pump calibration and reporting.
Bureau allowed to test pumps.
LPG cylinders must not be underfilled by more than 0.3 kg; broken seals presumed underfilling.
Marketers, dealers, retail outlets must maintain sealed, calibrated weighing devices to verify LPG quantity.

Oil companies and marketers must operate during specified normal business hours.
Dealers of gasoline and LPG must maintain specified hours; refusal to sell without good cause when product and payment are available is hoarding.
Undue accumulation beyond normal inventory levels, especially before price increases or during supply shortages, is hoarding.

Sale at prices exceeding Board of Energy fixed prices is prohibited.
Retailers in areas without published prices must sell at no more than ceiling prices of nearest locality.
Retailers may request price adjustment for reasonable cause.

During supply shortages, petroleum allocation may be rationed by Minister of Energy with Presidential approval.
Selling, exchanging, using allocated products for unauthorized purposes or misrepresentation to gain allocation is prohibited.

Speed contests or rallies involving motor vehicles, watercraft, or aircraft need Bureau authorization.
Skydiving and waterskiing with motorized craft allowed only if fuel used is methanol.

Petroleum products involved in illegal trading, adulteration, underdelivery, hoarding, overpricing, or misuse of allocation may be impounded.
Includes adulterated products, underfilled LPG cylinders, unlicensed transactions, and products without proper seals or receipts.
Evidence may be sealed on-site during proceedings.

Bureau empowered to impose penalties after notice and hearing except where hearing is waived.
Proceedings decided within 30 days after last response.
Administrative sanctions do not preclude criminal prosecution.
Possible penalties: preventive suspension (up to 30 days), fines up to P10,000, suspension or revocation of licenses.
Preventive suspension triggers include multiple pumps underdelivering, adulterated products, underfilled LPG cylinders, unlicensed operations, and lack of calibration/sealing.

Administrative proceedings governed by Bureau Rules of Practice and Procedures as far as practicable.
Inconsistent rules repealed or modified.
Unconstitutional provisions severable.
Rules effective 15 days after publication in two newspapers.