REVISED SCHEDULE OF PENALTIES IN THE LPG INDUSTRY OF 2000

WHEREAS, Batas Pambansa Blg. 33, as amended by P.D. 865 defined
certain prohibited acts inimical to the public interest and national
security involving petroleum and/or petroleum products, prescribing
penalties therefor and for other purposes;

WHEREAS, in 1983, the Bureau of Energy Utilization of the then
Ministry of Energy issued rules and regulations on the implementation of
Batas Pambansa Blg. 33, as amended by P.D. 1865;

WHEREAS, Section 15 of Republic Act No. 8479 provides for additional
powers for the DOE Secretary which may readily be availed of to deter,
restrain, and/or penalize any and all illegal, irregular, and anomalous
business practice or activity, with the end in view of cultivating and
instilling discipline, honesty, and fair trade practices in the
consciousness of each and every player in all levels of the downstream
oil industry;

WHEREAS, the recent development in the downstream oil industry more
particularly the transition and shift from regulation to deregulation,
the entry of new players in the industry, the growing concerns of the
consumers, relative to unfair trade practices, and the pressing need for
government to protect and safeguard public interests has made it
imperative for the Department of Energy (DOE) to draw and formulate a
new set of penalties for the various offenses relative to the LPG
industry as outlined in the Implementing Rules and Regulations (IRR) of
Batas Pambansa Bilang 33, as amended by Presidential Decree No. 1865.

WHEREFORE, premised considered, the foregoing schedule of penalties
shall complement said IRR and is hereby adopted for implementation
subject to the pertinent provisions on procedures prescribed in the
latter.

ARTICLE I

General Provisions

SECTION 1.       Short Title — This Department Circular shall be known as the “Revised Schedule of Penalties in the LPG Industry of 2000.”

SECTION 2.       Coverage — This Department Circular shall
apply to all persons or entities engaged in any and all activities
involving the commerce of Liquefied Petroleum Gas (LPG).

SECTION 3.       Definition of Terms —

a.         Refiller — refers to any person,
whether natural or juridical, who buys LPG in bulk from bulk suppliers,
refills LPG into cylinders under his own brand name or that of other LPG
marketers.

b.         Marketer — refers to any person,
whether natural or juridical, engaged in the sale of LPG, whether in
bulk or retail, under his own brand name.

c.         Dealer — refers to any person, whether
natural or juridical, engaged in the sale of LPG bottled into cylinders
under contract with an oil company or marketer who owns the brand.

d.         Retail Outlet — refers to one who
sells LPG bottled into cylinders directly to a consumer, with a maximum
floor stock of twenty (20) LPG cylinders.

e.         Tare-weight — refers to the weight of
the LPG cylinder engraved in the collar and shall be expressed in
kilograms indicated to at least one-tenth (o.1) of one kilogram. The
marking shall not be less than 2.0 cm. in height.

f.          Authorized or Appropriate LPG Seal —
refers to the protective cover placed on the gas outlet of an LPG
cylinder, of the type that must be broken or destroyed before the LPG
can flow out of the cylinder. It shall have a distinctive design,
symbol, emblem, or maker, identifying the owner of the LPG cylinder. The
seal shall be subject to approval by the Department of Energy.

ARTICLE II

Table of Offenses and Their Corresponding Penalties

SECTION 4.       NO PRICE DISPLAY BOARD —

LPG Marketer/LPG Dealer/LPG Retail Outlet

1st Offense	—	Reprimand/warning letter
2nd Offense	—	Recommend suspension of business operation to the proper local government unit
3rd Offense	—	Recommend business closure to the proper local government unit and initiate criminal proceedings

SECTION 5.       NO WEIGHING SCALE —

A. LPG Refiller/Marketer

1st Offense	—	Fine of P5,000
2nd Offense	—	Fine of P10,000
3rd Offense	—	Recommend business closure to the proper local government unit

B. Dealer

1st Offense	—	Fine of P3,000
2nd Offense	—	Fine of P7,000
3rd Offense	—	Recommend business closure to the proper local government unit

C. LPG Retail Outlet

1st Offense	—	Reprimand
2nd Offense	—	Fine of P500.00
3rd Offense	—	Fine of P1,000.00

SECTION 6.       NO TARE WEIGHT OR INCORRECT TARE WEIGHT
MARKINGS. (REQUIREMENT ON ENGRAVED TARE WEIGHT SHALL TAKE EFFECT TWO (2)
YEARS AFTER EFFECTIVITY OF THIS CIRCULAR)

A. LPG Refiller/Marketer

1st Offense	—	Fine of P3,000 for each cylinder
2nd Offense	—	Fine of P5,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

B. Dealer

1st Offense	—	Fine of P2,000 for each cylinder
2nd Offense	—	Fine of P4,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

C. LPG Retail Outlet

1st Offense	—	Fine of P1,000 for each cylinder
2nd Offense	—	Fine of P2,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

SECTION 7.       NO APPROPRIATE OR AUTHORIZED LPG SEAL

A. LPG Refiller/Marketer

1st Offense	—	Fine of P3,000 for each cylinder
2nd Offense	—	Fine of P5,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

B. Dealer

1st Offense	—	Fine of P2,000 for each cylinder
2nd Offense	—	Fine of P4,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

C. LPG Retail Outlet

1st Offense	—	Fine of P1,000 for each cylinder
2nd Offense	—	Fine of P2,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

SECTION 8.       NO TRADE NAME, UNBRANDED LPG CYLINDERS, NO
SERIAL NUMBER, NO DISTINGUISHING COLOR, NO EMBOSSED IDENTIFYING MARKINGS
ON CYLINDERS OR DISTINCTIVE COLLAR OR DESIGN (REQUIREMENT ON SERIAL
NUMBER AND DISTINCTIVE COLLAR OR DESIGN SHALL TAKE EFFECT TWO (2) YEARS
AFTER EFFECTIVITY OF THIS CIRCULAR)

A. LPG/Refiller/Marketer

1st Offense	—	Fine of P4,000 for each cylinder
2nd Offense	—	Fine of P5,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

B. Dealer

1st Offense	—	Fine of P3,000 for each cylinder
2nd Offense	—	Fine of P4,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

C. LPG Retail Outlet

1st Offense	—	Fine of P1,000 for each cylinder
2nd Offense	—	Fine of P2,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

SECTION 9.       UNDERFILLED LPG CYLINDERS

A. LPG REFILLER/MARKETER

1st Offense	—	Fine of P4,000 for each cylinder
2nd Offense	—	Fine of P6,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

B. DEALER

1st Offense	—	Fine of P3,000 for each cylinder
2nd Offense	—	Fine of P4,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

C. LPG RETAIL OUTLET

1st Offense	—	Fine of P1,000 for each cylinder
2nd Offense	—	Fine of P2,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

SECTION 10.    TAMPERING, ALTERING, OR MODIFYING OF LPG CYLINDER
THRU ANY MEANS SUCH AS BUT NOT LIMITED TO CHANGING THE VALVE,
REPAINTING, AND RELABELLING, BY ANY PERSON OR ENTITY OTHER THAN THE
LEGITIMATE AND REGISTERED OWNER OF THE SAME. FOR THIS PURPOSE, LPG
REFILLER, MARKETER, DEALER, OR RETAIL OUTLET, AS THE CASE MAY BE, WHO
HAS POSSESSION OF SUCH ILLEGALLY TAMPERED, ALTERED, OR OTHERWISE
MODIFIED LPG CYLINDER SHALL BE HELD LIABLE FOR THIS OFFENSE.

A. LPG Refiller/Marketer

1st Offense	—	Fine of P5,000 for each cylinder
2nd Offense	—	Fine of P10,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

B. Dealer

1st Offense	—	Fine of P3,000 for each cylinder
2nd Offense	—	Fine of P5,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

C. LPG Retail Outlet

1st Offense	—	Fine of P1,500 for each cylinder
2nd Offense	—	Fine of P3,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

SECTION 11.    UNAUTHORIZED DECANTING OR REFILLING OF LPG CYLINDERS

1st Offense	—	Fine of P5,000 for each cylinder
2nd Offense	—	Fine of P10,000 for each cylinder
3rd Offense	—	Recommend business closure to the proper local government unit

SECTION 12.    HOARDING OF PETROLEUM PRODUCTS INCLUDING LIQUEFIED PETROLEUM GAS

1st Offense	—	Fine of P10,000 per cylinder
2nd Offense	—	Recommend business closure to the proper local government unit plus the filing of appropriate criminal action

SECTION 13.    REFUSAL TO ALLOW OR COOPERATE WITH DULY
AUTHORIZED INSPECTORS OF THE ENERGY INDUSTRY ADMINISTRATION BUREAU
(EIAB) OF THE DEPARTMENT OF ENERGY IN THE CONDUCT OF THEIR
INSPECTION/INVESTIGATION, WHETHER REGULAR AND ROUTINARY OR
COMPLAINT-INITIATED.

1st Offense	—	Fine of P10,000
2nd Offense	—	Recommend business closure to the proper local government unit

SECTION 14.    REFUSAL OR FAILURE TO PAY FINE — The
Department of Energy shall recommend to the proper local government unit
the closure of business of a respondent who refuses or fails to pay any
administrative fine without prejudice to the filing of an appropriate
criminal action if warranted.

ARTICLE III

Final Provisions

SECTION 15.    SUCCESSION OF OFFENSES —
For purposes of determining the First, Second and Third offenses the
lapse of five (5) years or fifteen official inspections of the
Department of Energy, which ever comes first, from the time of the
commission of the previous offense, shall be indicative of good business
conduct and thus operate to give a new and clean record to the former
offender. This, however, shall have no application in the event that the
offender’s LPG business has been previously closed by the proper local
government unit pursuant to the provisions of this Circular.

SECTION 16.    MAXIMUM TOTAL PENALTY — In the imposition of
pecuniary penalties the total fine shall not exceed Twenty Thousand
Pesos (P20,000.00) for retail outlets.

SECTION 17.    SEPARABILITY CLAUSE — If, for any reason,
any part or parts of these provisions be declared unconstitutional or
invalid, no other part of the provisions hereof shall be affected
thereby.

SECTION 18.    EFFECTIVITY — This Department Circular shall
take effect one (1) month after its complete publication in two (2)
newspapers of general circulation. However, the requirements of
“Engraved Tare Weight Marking” referred to in Section 6 shall take
effect three (3) months after effectivity of this Circular. The
requirements on “Serial Number and Distinctive Collar or Design”
referred to in Section 8 shall take effect two (2) years after
effectivity of this Circular.

Adopted: 26 May 2000

(SGD.) MARIO V. TIAOQUI
Secretary