SC backs DOE on penalties imposed on erring oil firms
The Philippine Star
07/06/2006
The Department of Energy (DOE) may now be able to impose penalties on erring and illegal practitioners in the oil industry as the Supreme Court (SC) ruled recently that the DOE has the right to penalize these irresponsible players.
In an order released last June 26, the SC upheld the validity of a DOE circular which penalizes abusive acts particularly in the liquefied petroleum gas (LPG) industry.
"With the Court’s imprimatur, the law enforcement agencies of the government can now confidently run after those who resort to illegal practices which cheat ordinary consumers and expose them to dangers to life and property," Eneregy Secretary Raphael Lotilla said.
The DOE circular, issued on June 2000, provides for various penalties for the offenses committed by any person or entity engaged in any and all activities involving the commerce of LPG. It was issued purposely to deter, restrain and/or penalize any and all acts of illegal, irregular and anomalous business practices in the LPG industry.
The penalties under the circular range from P500 to P10,000 per violation for each cylinder for the first and second offense. For the third offense, business closure is recommended by the local government units (LGUs).
Illegal practices in the LPG sector include underfilling, tampering, altering or modifying of cylinder through any means such as changing the valve, re-painting and re-labelling by any person or entity other than the legitimate owner of the same, unauthorized refilling of cylinder, no trade name, unbranded cylinders, no serial number, no tare weight or incorrect tare weight markings, among others.
The LPG Refillers Association of the Philippines Inc. (LPGRA) challenged the DOE circular, alleging its unconstitutionality and confiscatory nature. The group said the enabling laws, Batas Pambansa 33 and RA 8479 do not expressly penalize the acts and omissions enumerated in the DOE circular. The Supreme Court however, ruled that Batas Pambansa 33, as amended, indeed criminalizes illegal trading, adulteration, underfilling, hoarding and overpricing of petroleum products.
"The Supreme Court decision is particularly crucial at a time when the DOE has strengthened its enforcement activities by partnering with the Department of Trade and Industry (DTI), the Department of Interior and Local Government (DILG) and the LGUs," he added.
Early this year, the DOE, DILG and the DTI signed a memorandum of agreement creating a multi-agency task force for the strict enforcement of penalties against illegal and unsafe practices in the LPG industry.
Under the MOA, a Task Force LPG shall be established in each of the provinces and cities to eliminate the rampant use of underfilled, dilapidated, uncertified and unsafe LPG cylinders which pose serious threat to public safety and security. The task force is to be led by the respective governor and mayor, DILG officers through the Bureau of Fire Protection (BFP) and the Philippine National Police (PNP), the DOE and the DTI.
The inter-agency MOA is also an expansion of an earlier partnership of the DOE with the LPG industry associations in August 2000 for the conduct of inspections and info campaign drives, among others, on the subject of LPG.
Records from the DOE show that 61 percent of the LPG establishments inspected by the DOE with the DTI from January to May 2006 had been found to be selling unbranded cylinders, underfilled and defective tanks with fake seals or no tare weights markings, serial numbers and appropriate seals.
Last year, about 76 percent of the LPG establishments inspected recorded one or more violations.
07/06/2006
The Department of Energy (DOE) may now be able to impose penalties on erring and illegal practitioners in the oil industry as the Supreme Court (SC) ruled recently that the DOE has the right to penalize these irresponsible players.
In an order released last June 26, the SC upheld the validity of a DOE circular which penalizes abusive acts particularly in the liquefied petroleum gas (LPG) industry.
"With the Court’s imprimatur, the law enforcement agencies of the government can now confidently run after those who resort to illegal practices which cheat ordinary consumers and expose them to dangers to life and property," Eneregy Secretary Raphael Lotilla said.
The DOE circular, issued on June 2000, provides for various penalties for the offenses committed by any person or entity engaged in any and all activities involving the commerce of LPG. It was issued purposely to deter, restrain and/or penalize any and all acts of illegal, irregular and anomalous business practices in the LPG industry.
The penalties under the circular range from P500 to P10,000 per violation for each cylinder for the first and second offense. For the third offense, business closure is recommended by the local government units (LGUs).
Illegal practices in the LPG sector include underfilling, tampering, altering or modifying of cylinder through any means such as changing the valve, re-painting and re-labelling by any person or entity other than the legitimate owner of the same, unauthorized refilling of cylinder, no trade name, unbranded cylinders, no serial number, no tare weight or incorrect tare weight markings, among others.
The LPG Refillers Association of the Philippines Inc. (LPGRA) challenged the DOE circular, alleging its unconstitutionality and confiscatory nature. The group said the enabling laws, Batas Pambansa 33 and RA 8479 do not expressly penalize the acts and omissions enumerated in the DOE circular. The Supreme Court however, ruled that Batas Pambansa 33, as amended, indeed criminalizes illegal trading, adulteration, underfilling, hoarding and overpricing of petroleum products.
"The Supreme Court decision is particularly crucial at a time when the DOE has strengthened its enforcement activities by partnering with the Department of Trade and Industry (DTI), the Department of Interior and Local Government (DILG) and the LGUs," he added.
Early this year, the DOE, DILG and the DTI signed a memorandum of agreement creating a multi-agency task force for the strict enforcement of penalties against illegal and unsafe practices in the LPG industry.
Under the MOA, a Task Force LPG shall be established in each of the provinces and cities to eliminate the rampant use of underfilled, dilapidated, uncertified and unsafe LPG cylinders which pose serious threat to public safety and security. The task force is to be led by the respective governor and mayor, DILG officers through the Bureau of Fire Protection (BFP) and the Philippine National Police (PNP), the DOE and the DTI.
The inter-agency MOA is also an expansion of an earlier partnership of the DOE with the LPG industry associations in August 2000 for the conduct of inspections and info campaign drives, among others, on the subject of LPG.
Records from the DOE show that 61 percent of the LPG establishments inspected by the DOE with the DTI from January to May 2006 had been found to be selling unbranded cylinders, underfilled and defective tanks with fake seals or no tare weights markings, serial numbers and appropriate seals.
Last year, about 76 percent of the LPG establishments inspected recorded one or more violations.
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