REVISED SCHEDULE OF PENALTIES IN THE LPG INDUSTRY OF 2000
certain prohibited acts inimical to the public interest and national
security involving petroleum and/or petroleum products, prescribing
penalties therefore 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 of 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, premises 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.
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 (0.1) of one kilogram. The
marking shall not 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 mark, 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 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. (REQUIREMENTS 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 MARKINGS ON CYLINDER 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 P3,00 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 (15) 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
which supersedes Department Circular No. 2000-05-008 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 and “Serial Number and Distinctive
Collar or Design” referred to in Section 8 shall take effect two (2)
years after effectivity of this Circular.
Adopted: 9 June 2000
(SGD.) MARIO V. TIAOQUI
Secretary