Source: Public Relations and Information Department

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House okays LPG Act
08 August 2009 10:27:33 AM
Writer: Abigail A. Modino, MRS-PRIB

The House of Representatives has approved on third and final reading a bill regulating the liquefied petroleum gas (LPG) industry.

To be known as the LPG Act of 2009, House Bill 5942 sets standards and requirement for the LPG, auto-LPG, LPG containers and LPG cylinder industries and imposes fines and imprisonment for violators.

Rep. Mikey Macapagal-Arroyo (1st District, Pampanga), Chairman of the House Committee on Energy, said the measure seeks to safeguard the public from unfair trade practices and acts inimical to health and safety.

Rep. Rodolfo G. Plaza (Lone District, Agusan del Sur), an author of the measure, said the bill seeks to establish stricter guidelines in the sale, requalification, distribution and repair of LPG cylinders.

The bill requires all LPG and auto-LPG industry participants, including LPG cylinder seal manufacturers and suppliers, to have a valid license to operate from the Department of Energy (DOE).

A license from the Department of Trade and Industry (DTI) for LPG cylinder or container manufacturers, requalifiers, repairers and scrapping centers is required under the bill before one can commence business operations.

Under the bill, brand owners of LPG cylinders are obliged to ensure that their cylinders comply with the quality and safety standards.

The bill requires all dealers, retail outlets and representatives of delivery vehicles to weigh cylinders in the presence of the customers prior to the sale and delivery.

The bill imposes a fine of P100,000.00 and up to P 1 million, and imprisonment of six months to two years to violators, who before a price increase or in times of tight supply, unduly accumulates LPG products beyond his normal inventory levels or unreasonably limits or refuses to dispose of, sell or distribute LPG products, even if the buyer has the ability to pay in cash.

Arroyo said the crime of hoarding is committed when business establishments store a huge volume of LPG or 50 percent higher than its usual inventory and unreasonably limits or refuse to sell the same to the public.

A person who engages in the LPG business without a license to operate will be fined with P1,000.00 to P500,00.00 for each day of operation and corporations with P2,000.00 to P1 million and imprisonment from 6 months to two years.

The bill also penalizes importation of used or second hand LPG cylinders.

Co-authors of the bill are Reps. Antonio C. Alvarez (1st District, Palawan), Junie E. Cua (Lone District, Quirino), Michael John R. Duavit (1st District, Rizal), Teodoro L. Locsin Jr. (1st District, Makati), and Ma. Milagros H. Magsaysay (1st District, Zambales).