DOE crafting new rules on LPG supply, distribution

MANILA, Philippines - The Department of Energy (DOE) is crafting new rules to ensure safety standards on the supply and distribution of liquefied petroleum gas (LPG).

The department circular aims to set safety standards in the supply chain, an official said.

“What we plan for LPG is to create rules requiring standards compliance certificate (SCCs) for gasoline stations and even bulk suppliers,” said Zenaida Monsada, Oil Industry Management director of the DOE.

Non-compliant firms will be prevented from doing business with other market participants, Monsada said.

“That is the main feature of the LPG bill. All players are required to get SCCs so they can transact business with other SCC holders,” Monsada said.

The rule is being implemented with auto LPG sellers since 2009 since not everyone can simply refill automotives with LPG.

Monsada said the DOE has received reports that even auto LPG stations are refilling cooking gas cylinders.

House Bill 5052 or the LPG Industry Regulation and Safety Act of 2011 has yet to be scheduled for reading. Reforms will ensure the safety of customers, increase the powers of government agencies and promote a healthy and competitive environment.

Hence, the DOE targets releasing the department circular late this year or early next year.

Monsada said the DOE records weekly arrests of erring LPG firms.

However, the companies refuse to pay penalties, Monsada said, adding that the erring entities are not even registered to operate an LPG business.

“We cannot revoke a permit because the DOE did not even give them a permit,” she said.

The DOE is also crafting guidelines on transporting LPG cylinders.

This will outline rules for the transport of LPG cylinders specifically for two-wheeled vehicles.

To date, the DOE imposes P1,000 to P10,000 in fines and files cases against erring firms. The Trade department, for its part, confiscates damaged and dilapidated LPGs.