RULES AND REGULATIONS ON THE IMPLEMENTATION OF BATAS PAMBANSA BLG. 33
AS
AMENDED BY
PRESIDENTIAL DECREE NO. 1865 ISSUED ON MAY
25, 1983
RULE I
GENERAL PROVISIONS
Section 1.
COVERAGE
These
rules and regulations shall apply in the implementation of
Batas
Pambansa Bilang 33 as amended by
Presidential Decree
No. 1865 issued on May 25, 1983.
Section 2.
DEFINITION OF TERMS
For
the purposes of these rules and regulations:
1. “Bureau” shall mean the Bureau of
Energy Utilization.
2. “Ministry”
shall mean the
Ministry of Energy.
3. “Board”
shall mean the
Board of Energy.
4. “Act” shall refer to
Batas
Pambansa Blg. 33 as amended by
Presidential Decree No.
1865 issued on May 25, 1983.
5. An “Oil Company” is one that manufactures,
processes and sells a broad range of petroleum products. It shall refer to any of the following
companies and such other companies that may be organized for this purpose or
business:
ii.
Mobil Oil Philippines, Inc.
iv.
Pilipinas
Shell Petroleum Corporation
6. A “Marketer” is one that is engaged in
the sale or trading of petroleum products including LPG. A marketer may or may not manufacture or
process the products sold. A marketer is
differentiated from an oil company in that marketers include companies dealing
in one product only, such as LPG. An oil
company is also a marketer.
7.
A “Dealer” refers to one involved in
the sale or trading of petroleum products under contract with an oil company or
marketer. The dealer shall sell only the
products of the marketer.
8. A “Retail Outlet” refers to one who
sells petroleum products directly to a consumer.
9. A “Hauler” is one engaged in the
transportation of petroleum products as a business.
10.
“NSTA” shall refer to the
National Science and Technology Authority.
11.
“PSA” shall
refer to the
Products Standards Agency.
RULE II
ILLEGAL TRADING
Non-compliance
with or violation of the following provisions of this rule shall constitute
ILLEGAL TRADING and shall be punishable under the Act.
Section 1.
BUREAU OF ENERGY UTILIZATION
LICENSING
No
person or entity may produce, sell, transport, process, or manufacture, blend
or package petroleum products for business or profit without prior registration
and license from the Bureau of Energy Utilization. The registration and licensing requirements
are/shall be specified in BEU administrative rules
and regulations in this regard.
Annual
license renewal is required.
Section 2.
ISSUANCE OF RECEIPTS
All
transactions involving the sale or transfer of petroleum products to final
consumers or end-users must be covered by an official receipt bearing the
registered name and address of the seller and detailing the quantity, price and
type or petroleum product sold and the date of the transaction. In the case of the sale of LPG in cylinders,
the receipt shall also indicate the brand of the product, the gross weight of
the cylinder including its contents, the tare weight of the cylinder, excluding
the contents, the net weight of the LPG contained, the total price and the unit
price per cylinder.
Section 3.
REFILLING OF LPG cylinders
Refilling
of LPG cylinders for purposes of sale or distribution for business or profit
must have prior registration and license from the Bureau as provided for in BEU rules and regulations in this regard. Refilling of LPG cylinders not owned by the
refilling entity may be performed only with the written authorization of the
cylinder owner or the entity that has entitlement to such cylinders.
Section 4.
MARKING OF LPG CYLINDER
Within
ninety (90) days of the effectivity of these Rules and Regulations, all LPG
cylinders must be properly marked with the weight of the cylinder either
engraved or embossed. The weight shall
be expressed in kilograms and shall be indicated to the last one-tenth (0.1) of
one kilogram. The marking must be in a
conspicuous spot in the cylinder and shall not be less than 0.6 cm in
height. All LPG cylinders must also have
the owner’s trade name, a distinguishing color and distinctive serial number
marked on every cylinder.
Section 5.
UNLOADING OF PETROLEUM PRODUCTS
Petroleum
products may be unloaded only by/or in the presence of the buyer, or his
authorized representative, as named on the sales invoice. Moreover, unloading of the product may be
performed only at the premises designated by the buyer and indicated on the
sales invoice. For this purpose, the
supplier must indicate on the sales invoice the name of the buyer and eh
delivery point of every shipment.
Section 6.
CALIBRATION AND SEALING OF
DISPENSING PUMPS
All
fuel pumps used in petroleum retail outlets to dispense petroleum products sold
to the public must be properly calibrated and after calibration immediately
sealed by authorized calibrating entity.
A dispensing pump that is not calibrated or sealed or one that goes off
calibration shall be marked with an “out-of-order” sign and shall not be used
until the said pump is recalibrated and resealed.
The
authorized calibrating entities are the Municipal or City Treasurer, or in
their absence or incapacity, the
NSTA or, in their absence or incapacity, any other
government agency authorized therefor, or in their absence, the oil
company. In locations where the
Municipal or City Treasurer is capable of calibration, a calibration by other
authorized entities shall be provisional and subject to final calibration by
the Treasurer. The authority performing
the calibration shall install a seal after calibration to guard against
unauthorized adjustment of the dispensing pump meter which seal may not be
broken until the next calibration by an authorized entity.
The
calibration shall be performed as often as may be necessary to correct any
deviation from the appropriate delivered quantity as measured by a calibration
bucket certified and sealed by the NSTA. Such a calibration bucket shall be maintained
at all times in the retail outlet premises.
Section 7.
CALIBRATION, REGISTRATION AND
SEALING OF PETROLEUM PRODUCT TRANSPORT CONTAINERS
All
tank trucks, tank trailers and other mobile containers used to transport
measured amounts of petroleum products in bulk must be registered with the
Bureau. Moreover, the capacity of such
transport containers must be certified and calibrated by the National Science
and Technology Authority or by an other government
agency authorized therefor. Calibration
markers shall be fixed and provided with seal by the calibrating agency. Removal, tampering or absence of such seals
shall disqualify such containers from further use until recalibration and
resealing by the proper authorities is performed. In the absence or incapacity of a properly
constituted authority to perform this requirement, calibration and sealing by
the oil company shall suffice.
To
guard against pilferage in transit, tank trucks, tank trailers and other mobile
containers of petroleum products in bulk shall have all the valves, hatches,
and other openings sealed closed by the marketer before leaving the source
depot. Such seal may not be removed,
tampered or broken except by buyer or his representative, or the supplier, and
only at their respective places of business.
A
broken or tampered valve or hatch seal, or the absence of one, shall give rise to the presumption that the container is
underfilled or that the product contained is adulterated and the shipment may
be refused by the buyer.
Section 8.
LPG CYLINDER SEALING
Within
one hundred eighty (180) days from the effectivity of these rules and
regulations, all LPG cylinders shall be provided with seal after every
filling. LPG in cylinders with broken
seal or without seal shall not be sold or distributed thereafter.
The
seal must be of the type that must be broken or destroyed before the product
can flow out of the cylinder. The seal
shall be subject to approval of the Bureau.
The
marketer and the filling plant, if the latter is a different entity, shall be
jointly responsible for providing the seal required under the Act.
RULE III
PETROLEUM PRODUCT
ADULTERATION
Section 1.
Petroleum products not meeting the pertinent PSA
specifications shall be deemed adulterated, provided
that in the case of the octane number specifications for gasoline, a deviation
of one (1) octane or less below the minimum shall be considered as meeting
specifications for the purpose of the Act.
Mixing
water or other substances not miscible and forming a separate layer from the
petroleum product, in quantities exceeding the PSA
allowable water and sediments content, shall constitute adulteration.
The
sale, distribution, transportation, exchange or barter of adulterated products as
defined in this Section or possession thereof for any of the above purposes,
shall constitute an act of adulteration prohibited and penalized under the Act.
Section 2.
SAMPLING AND TESTING OF PETROLEUM
PRODUCTS BY OIL COMPANIES
(a) Oil
companies shall take storage tank samples after every shipment of premium and
regular gasoline to their depots/bulk plants and shall keep such samples except
where such storage tank samples have been tested, and found to meet the PSA specifications in which case the results of the test
shall be duly recorded and kept in the depot for at least one year. Each sample shall be clearly identified as to
source tank and date of sampling. The
sample shall be kept for at least three weeks more after the next shipment.
(b) Oil
companies shall expeditiously respond to dealer request for confirmatory or
verification testing of petroleum products.
(c) Oil
companies shall also periodically take samples and test premium and regular
gasoline stock of their retail outlets at least once every three (3)
months. The test results shall include
octane number and shall be reported to the Bureau on a monthly basis.
Section 3.
TESTING OR RETENTION OF SAMPLE OF
PETROLEUM PRODUCTS BY THE DEALER/OPERATOR
As
a measure against delivery of adulterated products, dealers are required to do
either (a) or (b) below:
(a) The
dealer/operator shall take one (1) liter sample each of the premium and/or
regular gasoline delivered. The samples
shall be placed in a suitable container and sealed in the presence of the tank
truck driver who shall verify the sample-taking by so indicating on the
invoice. The sample shall be kept by the
dealer for at least one (1) month or until the third delivery thereafter,
whichever is shorter.
(b) Using
a hydrometer, take the API gravity or density and obtain the corrected API
gravity at 60 degrees Fahrenheit or specific gravity at 15 degrees Celsius and
compare this against the API gravity at 60 degrees.
(c) Fahrenheit
or density at 15 degrees Celsius as indicated in the product invoice. For this purpose, oil companies shall indicated the API gravity at 60 degrees Fahrenheit or
density at 15 degrees Celsius of all deliveries of premium and regular gasoline
the corresponding invoice. A dealer may
refuse to accept the shipment if the API gravity difference exceeds by 0.6
degrees API or the density difference exceeds by 0.0024. Both oil company and
dealer specific gravity or density readings should be recorded in a logbook
kept for this purpose.
Dealers
may require their oil company supplier to perform verificatory
quality tests on products received.
Section 4.
SAMPLE TAKING BY THE BUREAU
Bureau
inspectors and other law enforcement agents may require oil companies,
marketers, dealers, haulers and retail outlets to provide one (1) liter sample of
petroleum products for sale for laboratory test purposes.
Section 5.
REMOVAL OF WATER PHASE IN
UNDERGROUND TANK BY DEALER/OPERATOR OF PETROLEUM PRODUCT RETAIL OUTLET
The
oil company supplier of dealers and operators of petroleum retail outlets should
ensure that the product suction line of their storage tanks is elevated at
least four (4) inches from the bottom of the tank and the dealers and operators
of petroleum retail outlets should periodically remove the water phase to avoid
water draw off with the product.
RULE IV
UNDERDELIVERY AND
UNDERFILLING
Section 1a.
UNDERDELIVERY IN DISPENSING PUMPS
The
quantity of petroleum products delivered by dispensing pumps in retail outlets
as measured by the dispensing pump meter shall not be less than actual quantity
by more than 50 millimeters for every 10 liters as measured by a calibrating
bucket certified by the NSTA. The calibrating bucket shall be filled to the
10 liter mark three (3) times as low, medium and fast flow rates and the
average quantity as measured by the pump meter shall constitute the quantity to
be compared with the actual quantity.
Use of such pumps n the sale of petroleum products shall be punishable
under the Act. The absence of an
“out-of-order” sign or padlock on the pump that is found under-delivering shall
constitute a presumption of actual use of the pump in the sale of the petroleum
product. A dispensing pump found with
broken or no seal shall be presumed to be under delivering and absence of
“out-of-order” notice or padlock shall likewise give rise to a presumption of
actual use of the pump in the sale of the product.
Section 1b.
DAILY TESTING OF DISPENSING PUMPS
BY DEALER
All
retail outlets shall test dispensing pump meters daily before opening for
business using an
NSTA
calibrated bucket. Any pump not
delivering the correct quantity shall be marked with an “out-of-order” sign and
shall not be used until said pump is recalibrated and resealed by a proper
authority.
Retail
outlets are given thirty (30) days from the date of effectivity of these Rules
to secure an
NSTA
certified calibrating bucket and comply with the requirement of this
Section. The oil companies shall be
responsible for informing their respective dealers of the requirements of this
Section and of reporting to the Bureau their dealer’s compliance.
The
dealer calibration bucket must be recalibrated and resealed once every twelve
(12) months by the
NSTA.
The
dealer shall keep a written record or logbook of the daily testing required
herein shall be made available to Bureau inspectors and to the public upon
demand.
Section 1c.
CALIBRATION OF DISPENSING PUMPS BY
OIL COMPANIES
Oil
companies shall respond expeditiously to their dealer’s request for calibration
of pumps subject to the provisions of Section 6, Rule 12 hereof.
All
oil companies shall also periodically calibrate all of the dispensing pumps of
their dealers and check their calibration bucket at least once every sixty (60)
days. The results of these calibrations
must be reported to the Bureau every three (3) months.
All
calibrations shall be duly documented and signed by the mechanic who performed
the calibration and check their calibration bucket and countersigned by the
retail outlet dealer. A copy of this
document shall be kept on file at the retail outlet.
After
the calibration, a sticker of at least one-half (1/2) inch by two (2) inches bearing
the date of the calibration and the initials of the mechanic who calibrated the
pump shall be posted on the face of the pump calibrated.
Section 1d.
TESTING OF DISPENSING PUMPS BY
BUREAU PERSONNEL AND/OR BY OTHER LAW ENFORCEMENT AGENTS
The
dealer shall allow and cooperate with Bureau inspectors and other law
enforcement agents in testing the calibration of dispensing pumps.
Section 2a.
UNDERFILLING OF LPG CYLINDERS
In
case of LPG for sale in cylinders, the net LPG quantity contained shall not be
more than three tenths (0.3) of one kilogram less than the required cylinder
content. Shortage in the quantity
contained exceeding this quantity shall constitute underfilling. A broken or tampered seal, or the absence of
one, shall give rise to the presumption that the LPG cylinder is
underfilled. Possession of underfilled
LPG cylinders not properly so identified or taken out from the sales area
accessible to the public, gives rise to presumption that they are for sale.
LPG
cylinders with water capacity of twenty-one (21) liters to twenty-nine (29)
liters shall contain eleven (11) kilograms.
Section 2b.
WEIGHING DEVICES REQUIRED
All
LPG marketers, dealers and retail outlets selling directly to end-users shall
maintain at all times in their premises a suitable weighing scale for LPG
cylinders calibrated ands sealed by the proper authority. Such devices shall meet the required contents
before selling or delivering these in its sales area accessible to its customers.
Section 2c.
CHECKING OF LPG CYLINDER CONTENT
BY DEALERS AND RETAIL OUTLETS
All
marketers, dealers and retail outlets selling directly to end-users shall check
by weighing that the LPG in its cylinders meet the required contents before
selling or delivering or placing these in its sales or pick-up area accessible
to its customers.
Section 2d.
Oil
companies, marketers and dealers shall periodically sample and check the LPG
sold by their respective dealers and/or retail outlets to verify compliance
with the LPG contents requirement at least once every ninety (90) days. They shall likewise check whether dealers’
and/or retail outlets’ weighing devices are calibrated and sealed in accordance
with Section 2b above. The results of
such test shall be recorded and kept by the oil company,
marketer or dealer for at least one (1) year and shall be made available to the
Bureau on demand.
RULE V
HOARDING
Section 1.
All oil companies and marketers shall be open during normal business
hours herein set to be from eight in the morning (8:00 A.M.) to four-thirty in
the afternoon (4:30 P.M.), Monday through Friday.
All
dealers of gasoline products shall be open daily and during normal business
hours herein set to be from seven in the morning (7:00 A.M.) to seven in the
evening (7:00 P.M.). Dealers and retail
outlets of liquefied petroleum gas shall be open during normal business hours
set to be from eight in the morning (8:00 A.M.) to five in the afternoon (5:00
P.M.), Monday through Friday.
Except
for good cause, all oil companies, marketers, dealers and retail outlets may
not refuse to sell petroleum products.
Refusal to sell when the product is available and the consumer is paying
in cash shall constitute hoarding except when the available product consists of
unusable bottoms usually consisting of the bottom four inches content of the
storage tank in the case of gasoline dealers.
Section 2.
Undue accumulation of petroleum products in times of tight supply and
shortly before an anticipated price increase by marketers, retail outlets or
consumers shall constitute hoarding.
Undue accumulation shall mean quantities beyond the normal inventory
levels maintained during the immediately preceding thirty (30) days for
marketers or retail outlets, and in the case of consumers.
RULE VI
OVERPRICING
Section 1.
Petroleum products whose prices are set by the
Board of Energy may not be sold above such
fixed prices.
Section
2. In outlying areas where no price is
published by the Board of Energy, the retailer shall not sell at a price not
more than the ceiling price in the nearest locality where a Board of Energy
price is set. A retailer may, for
reasonable cause, request the
Board of Energy
to set a different price for his locality.
RULE VII
MISUSE OF PETROLEUM
ALLOCATION
Section
1. In times of short supply of petroleum
products, the
Minister of Energy and/or
any other authority created for this purpose may, with the approval of the
President of the
RULE VIII
SPEED CONTESTS OR
RALLIES
Section
1. Speed contests or rallies involving
mainly the use of motor powered vehicles, watercraft or aircraft may not be
held without prior authorization and permit from the Bureau.
RULE IX
SKYDIVING AND
WATERSKIING
Section
1. Skydiving and waterskiing for
pleasure or sports requiring the use of motorized aircraft or watercraft,
respectively, shall not be allowed except when the fuel used in the aircraft or
watercraft is methanol.
RULE X
IMPOUNDING OF EVIDENCE
Section
1. Impounding of petroleum and/or
petroleum products constituting evidence of illegal trading, adulteration,
short selling, hoarding, overpricing and misuse of petroleum allocation shall
be applicable in the following cases:
1.
Adulterated petroleum products in bulk
depots, retail outlets, or in transit.
2.
LPG in cylinders found to be
underfilled.
3.
Petroleum products held in violation
of the Anti-Hoarding provisions of the Act.
4.
Petroleum product allocations obtained
or disposed in violation of the Misuse of Allocation provisions of the Act.
5.
Petroleum products sold at a price
exceeding the authorized price including all stocks still in possession of the
seller.
6.
Petroleum products diverted from
buyer’s designated delivery point.
7.
Petroleum products sold without
Bureau’s license or transported by haulers without Bureau license.
8.
Petroleum products sold without
receipts.
9.
LPG filled into cylinders by filling
plants without license from the Bureau and/or filled in cylinders not owned by the
filling plant or marketer and who do not have written authorization by the
owner to use or fill the cylinder.
10.
LPG in cylinders without tare weight,
or without seal after the sealing requirement goes into effect.
During
the pendency of the criminal or administrative proceedings, the petroleum
products stored in fixed tanks and which constitute evidence may be impounded
in site by the appropriate authorities.
RULE IX
ADMINISTRATIVE
PROCEEDINGS
Section
1. Requirement of Notice and Hearing and Waiver Thereof
Through
the administrative proceedings, the Bureau is empowered to impose, after due
notice and hearing, the penalties stated hereunder for violation of any
provision of the Act and these implementing rules and regulations: Provided,
however, That hearing in any administrative proceedings may be waived by
respondent.
Section
2. DURATION
OF ADMINISTRATIVE PROCEEDING
Administrative
proceeding shall be decided within thirty (30) days after filing of the last
responsive pleading by the respondent, or the termination and completion of the
administrative proceedings.
Section
3. EFFECT
OF IMPOSITION OF ADMINISTRATIVE SANCTION
The
administrative sanction that may be imposed shall be without prejudice to the
filing of a criminal action as the case may warrant.
Section
4. ADMINISTRATIVE
PENALTIES
Pursuant
to the power of the Bureau to issue, suspend or revoke licenses, and in order
to protect the public from short selling and adulteration of petroleum
products, the following administrative actions may be taken:
a)
Preventive Suspension – During the
pendency of an administrative proceeding, the Bureau may suspend the operations
of an oil company, marketer, dealer, hauler, LPG refiller or retail outlet
where any one of the following circumstances are present:
1.)
Where
at least three pumps in a retail outlet are found to be under delivering by 100
milliliters or greater per 10 liters;
2.)
Where
more than fifty (50) percent of the pumps in an outlet are under delivering by
100 milliliters or greater per 10 liters;
3.)
Where
the under delivering pump or pumps are without seal or the seal is broken or
tampered;
4.)
Where
the product sold is found adulterated by BEU
inspectors, as to the tank and pump involved;
5.)
Where
more than twenty (20) percent of the LPG cylinders inspected and tested are
underfilled;
6.)
Where
an LPG marketer, refiller, dealer or retail outlet sells LPG in cylinders
without the required seal;
7.)
Where
tank truck, lorry, hauling vehicle and other conveyors are not calibrated and
sealed as required by the Act.
b)
The preventive suspension shall not
exceed thirty (30) days.
8.)
Fine
or suspension of not more than Ten Thousand Pesos (P 10,000.00); or
9.)
Suspension
of license; or
10.)
Revocation of license.
Section
5. BUREAU
RULES OF PRACTICES AND PROCEDURES APPLICABLE
Whenever
practicable and convenient, the provisions of Bureau Rules of Practice and
Procedures Governing Hearings before the Bureau issued on August 2, 1982, and
which took effect on October 18, 1982, shall be applicable in the
administrative proceedings under the Act.
RULE XII
REPEALING CLAUSE
Section
1. Any rule or regulation inconsistent
with the provisions of these Rules is hereby repealed or modified accordingly.
RULE XIII
SEPARABILITY
Section
1. If, for any reason or reasons, any
part of these Rules be declared unconstitutional or invalid, no other part of
provisions hereof shall be affected thereby.
RULE XIV
EFFECTIVITY
Section
1. These Rules and Regulations shall
take effect fifteen (15) days from the date of its publication in two (2) newspapers
of general circulation.
Acting
Director
Bureau
of Energy Utilization
APPROVED:
GERONIMO Z. VELASCO
Minister
of Energy
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