Department of Energy assures public of LPG supply, blames illegal refillers

Energy Secretary Angelo Reyes assured the public yesterday of enough supply of liquefied petroleum gas (LPG) for household and business needs.

In Caloocan City, Mayor Enrico Echiverri warned yesterday hoarders of LPG that the city government would close down their businesses and file criminal charges against them.

Their business permits will also be revoked, he added.

Echiverri has directed City Administrator Russel Ramirez to monitor business establishments selling LPG and check the weight of the tanks.

They are ready to go after suspected LPG hoarders and raid their warehouses, Ramirez said.

Speaking to reporters yesterday, Reyes said major oil companies are set to import the cooking gas early this month.

“There is no reason to panic,” he said. “We will place the order needed in the industry.”

Reyes said 85 “illegal refillers” have been charged.

“We are working together with representatives from the Department of Justice (DOJ) in pursuing the cases filed against these groups engaged in trade malpractice,” he said.

These groups have been using cylinders that are not safe and causing panic among buyers, Reyes said.

Mercedita Pastrana, LPG Industry Association executive director, said the DOE together with the other stakeholders are set to come out with a circular to address the malpractices in the industry.

Reyes said the circular’s final draft will come out after proper consultations with concerned groups.

“This (circular) aims to regulate players and bring durable improvement in the industry as well,” he said.

“With this, penalties concerning abnormal practices with regard to the use of cylinders will be imposed.”

Illegal refillers refer to players selling LPG but illegally using cylinders of known brands. They do not follow safety standards and don’t fill the cylinders with enough LPG.

Lawyer Gerry Yarte Jr. of the DOE-DOJ Task Force, said they are now working with major players to come out with a temporary restraining order to stop the illegal refillers from continuing their illegal activities.

“What we wanted is that a permanent injunction be served on these illegal operators for them not to use LPG tanks owned by legal companies,” he said.

“In the three-day investigation, we expect to determine specifically the unreasonable prices in some of the stores as well as determine if these prices fall under the parameters set by the DOE-DOJ Task Force.”

LPG dealers said an 11-kilogram LPG is priced between P500 to P520.

These are the prevailing prices among branded companies like Shellane, Total, Petron and Petronas, the dealers added.

Representatives of oil companies have advised the public against buying products without a seal as these might have come from an illegal source. – Rhodina Villanueva, Jerry Botial