effer of the can, TWENTIETH CONGRESS OF THE JUL -3 P3:37 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY. SENATE S. B. No. 62 Introduced by Senator Rodante D. Marcoleta AN ACT PROTECTING FILIPINO CONSUMERS FROM ARBITRARY PRICE INCREASES OF LIQUIFIED PETROLEUM GAS, AMENDING FOR THE PURPOSE SECTIONS 14 AND 19 OF REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE "DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998" EXPLANATORY NOTE Republic Act No. 8479 or the Downstream Oil Industry Deregulation Act of 1998 has allowed market forces to determine the price of gasoline and other oil products, including liquified petroleum gas (LPG). Data from the Department of Energy (DOE) shows that there are "more than 45,000 LPG dealers across the country, representing more than 30 LPG brands". . Moreover, the latest data from their price monitoring reveals that the price of a standard 11-kg household LPG in the National Capital Region ranges from PHP 830 - 1110.1 Even as the law mandated the Department of Energy (DOE) to monitor the international and domestic prices of crude and petroleum products, the pricing is left with the LPG industry, including their dealers and retail outlets, to set. While the DOE may have been successful in persuading most companies to implement price adjustments of liquid petroleum products in small increments, the situation remains uncertain with the LPG industry. Some players have been noted to Monitoring of 11 from:
implement the full impact of increases in the benchmark monthly contract price (CP) in Saudi Arabia at the beginning of the month, but only smaller increments are implemented during times of downward CP movements. Although domestic prices are dependent on the price in the international market and the peso exchange rate, mechanisms may have to be put in place to protect the welfare of the consumers from abuse by unscrupulous local LPG industry players. This measure aims to provide an automatic pricing mechanism to ensure reasonable, transparent and timely adjustment on the LPG prices. In view of the foregoing, the immediate passage of this bill is earnestly sought. RODANTE D. MARCOLETA
THE PHILIS & RECEIVED TWENTIETH CONGRESS OF THE DATED L - 3 2025 2 REPUBLIC OF THE PHILIPPINES TIME: 3:37 pm First Regular Session BY: - SENATE BILLS & INDEX S. B. No. - Introduced by Senator Rodante D. Marcoleta AN ACT PROTECTING FILIPINO CONSUMERS FROM ARBITRARY PRICE INCREASES OF LIQUIFIED PETROLEUM GAS, AMENDING FOR THE PURPOSE SECTIONS 14 AND 19 OF REPUBLIC ACT NO. 8479, OTHERWISE KNOWN AS THE "DOWNSTREAM OIL INDUSTRY DEREGULATION ACT OF 1998" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 14 of Republic Act No. 8479 is hereby amended to read as
follows: "xxx (d) Any report from any person of an unreasonable rise in the prices of petroleum products shall be immediately acted upon. For this purpose, the [creation of the DOE DO] Task Force] ENERGY REGULATORY COMMISSION (ERC) is hereby mandated to determine within thirty (30) days the merits of the report and initiate the necessary actions warranted under the circumstance: Provided, That nothing herein shall prevent the said task force from investigating and/or filing the necessary complaint with the proper court or agency [moto propie] MOTU PROPRIO. XXX"
Sec 2. Section 19 of Republic Act No. 8479 is hereby amended to read as follows:
"Section 19. Start of Full Deregulation. - xxx
PROVIDED FURTHER, THAT IMMEDIATELY, THE PRICE OF LPG HAS TO BE GUIDED BY AN AUTOMATIC PRICING MECHANISM (APM) WHICH SHALL BE DETERMINED BY THE ERC, AFTER PRIOR NOTICE AND HEARING, WITHIN SIX (6) MONTHS FROM THE EFFECTIVITY OF THIS ACT. MOREOVER, THE APM SHALL PROVIDE FOR CYLINDER REPAIR AND MAINTENANCE COST IN ORDER TO ENSURE THAT ONLY SAFE AND QUALIFIED LPG CYLINDERS ARE PUT IN CIRCULATION."
Sec. 3. Implementing Rules and Regulations - Within sixty (60) days after the
9 effectivity of this Act, The ERC shall, in coordination with the Department of Energy, Department of Trade and Industry and other concerned government agencies, promulgate the rules and regulations to effectively implement the provisions of this Act.
Sec. 4. Separability Clause. - If any provision or part of this Act is declared invalid
or unconstitutional, the remaining parts not affected shall remain in full force and effect.
Sec. 5. Repealing Clause. - All laws, presidential decrees, executive orders, letters
of instructions, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.
Sec. 6. Effectivity. - This Act shall take effect fifteen (15) days after its publication
18 in the Official Gazette or in a newspaper of general circulation. Approved,