Presidential Decree No. 1865
AMENDING
BATAS PAMBANSA BILANG 33,
ENTITLED “AN ACT DEFINING AND PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO
THE PUBLIC INTERESTS AND NATIONAL SECURITY INVOLVING PETROLEUM AND/OR PETROLEUM
PRODUCTS, PRESCRIBING PENALTIES THEREFOR AND FOR OTHER PURPOSES”, BY INCLUDING
SHORTSELLING AND ADULTERATION OF PETROLEUM AND PETROLEUM PRODUCTS AND OTHER
ACTS IN THE DEFINITION OF PROHIBITED ACTS, INCREASING THE PENALTIES THEREIN,
AND FOR OTHER PURPOSES”
WHEREAS,
Batas
Pambansa Bilang 33, defines and penalizes certain prohibited acts inimical
to the public interest and national security involving petroleum and/or
petroleum products;
WHEREAS, adulteration of finished
petroleum products or possession of adulterated finished petroleum products for
the purpose of sale, distribution, transportation, exchange or barter; and
underdelivery or underfilling beyond authorized limits in the sale of petroleum
products or liquefied petroleum gas cylinders are pernicious practices that are
rampant and widespread;
WHEREAS, there is an urgent need
to curb, if not totally eliminate, such nefarious practices in the industry in
order to better protect the consuming public;
WHEREAS, it is necessary to
provide the implementing government agencies with increased administrative and
criminal penalties with which it can effectively curtail petroleum product
adulteration and shortselling as well as other prohibited acts and activities
involving petroleum and/or petroleum products which are inimical to public
interest and national security;
WHEREAS, in view of the foregoing
considerations, it has become necessary to amend certain provisions of Batas
Pambansa Bilang 33, as well as to provide, new provisions in the law;
NOW, THEREFORE, I, FERDINAND E.
MARCOS, President of the
SECTION 1. Section two of
Batas Pambansa
Bilang 33, as amended, is further amended to read as follows:
“SEC. 2. Prohibited
Acts.
– The following acts are
prohibited and penalized:
“(a) Illegal
trading in petroleum and/or petroleum products :
“(b) Adulteration
of finished petroleum products, or possession of adulterated finished petroleum
products for the purpose of sale, distribution, transportation, exchange or
barter;
“(c) Underdelivery
or underfilling beyond authorized limits in the sale of petroleum products or
possession of underfilled liquefied petroleum gas cylinder for the purpose of
sale, distribution, transportation, exchange or barter;
“The oil company, petroleum
refiller, marketer, dealer and retailer, as the case may be, and the hauler
shall be responsible for the quantity and quality of the petroleum products
delivered when the same is sold on delivered basis.
“For the purpose of this
subparagraph, the existence of the facts hereunder shall give rise to the
following presumptions:
“(1) That
cylinders containing less than the required quantity of liquefied petroleum gas
which are not properly identified, tagged and set apart and removed or taken
out from the display are and made accessible to the public by marketers,
dealers, sub-dealers or retail outlets are presumed to be for sale;
“(2) In
the case of a dispensing pump in a petroleum product retail outlet selling such
products to the public, the absence of an out-of-order sign, or padlock,
attached or affixed to the pump to prevent delivery of petroleum products
therefrom shall constitute a presumption of the actual use of the pump in the
sale or delivery of such petroleum products; and
“(3) Where
the seal, whether official or of the oil company, affixed to the dispensing
pump, tank truck or liquefied petroleum gas cylinder, is broken, or is absent
or removed, it shall give rise to the presumption that the dispensing pump is
underdelivering, or that the liquefied petroleum gas cylinder is underfilled,
or that the tank truck contains adulterated finished petroleum products or is
underfilled;
“The use of such pumps, cylinders or
containers referred to in sub-paragraph (1), (2), and (3) of this
sub-paragraph, to deliver products for sale or distribution shall constitute prima facie evidence of intent of the
hauler, marketer, refiller, dealer, retailer outlet operator to defraud;
“[(b)] (D) Hoarding of petroleum
and/or petroleum products;
“[(c)] (E) Overpricing in the sale
of petroleum products;
“[(d)] (F) Misuse of petroleum
allocations;
“[(e)] (G) Speed contests and
rallies involving mainly the use of motor vehicles, motor-driven watercraft or
aircraft utilizing petroleum-derived fuels, including car and motorcycle
rallies and drag racing, without the permit from the bureau of energy
utilization; and
“[(f)] (H) Sky-diving, and water
skiing except when methanol is used for the power- boat operation.”
SEC. 2.
Section three of the same Act is hereby amended to read as follows:
“SEC. 3. Definition
of Terms. – For the purpose of this
Act, the following terms shall be construed to mean:
“Illegal trading in petroleum and/or
petroleum products” –
“(A) the
sale or distribution of petroleum products [for profit] without license or
authority from the [Government] Bureau of Energy Utilization;
“(B) non-issuance
of receipts by licensed [traders] oil companies, marketers, distributors,
dealers, sub-dealers and other retail outlets, to final consumers; provided:
that such receipts, in the case of gas cylinders, shall indicate therein the
brand name, tare weight, gross weight, and the price thereof;
“(C) Refilling
of liquefied petroleum gas cylinders without authority from said
bureau, or
refilling of another company’s or firm’s cylinders without such company’s or
firm’s written authorization;
“(D) Making
or using in such cylinders a tare weight other than the actual or true tare
weight thereof;
“(E) Violation
of rules and regulations of said bureau regarding the implementation of this
Act;
“(F) Removal
or unloading of petroleum products from any lorry, tank truck or delivery
vehicle by any person other than the contracted purchaser, or in premises of
the purchaser’s retail outlet or business establishment;
“(G) Use
of a pump metering unit which has not been properly calibrated and sealed by
the office of the city or municipal treasurer where the station or outlet is
located, or by the national science and technology authority (NSTA), or by any
other government agency authorized therefor, or in the absence thereof by the
oil company; and
“(H) Use
of a tank truck, lorry, hauling vehicle, or other conveyor other than vessels
or barges for the delivery of petroleum products which has not been registered
with the Bureau of Energy Utilization and the tanks, containers, or compartment
thereof are not properly calibrated and sealed by the national science and
technology authority or any other government agency authorized therefor
[misrepresentation as to quality and/or quantity; and sale by oil companies,
distributors and/or dealers violative of government rules and regulations]
“Petroleum fuel product
adulteration” – the mixing of any petroleum product with another finished or unfinished
petroleum product or stock or with any non-petroleum substance or material that
will result in product quality change, or resulting in the failure of such
finished petroleum product to meet the required product specifications as
prescribed by the products standards agency of the
Ministry of Trade and
Industry, for the purpose of this definition, finished petroleum products
refers to any of the following: Premium gasoline, regular gasoline, aviation
gasoline, aviation turbo fuel, kerosene, diesel fuel, industrial fuel or
packaged lube oils. This definition
shall not apply to alcogas mixture and oil emulsions.
“Underfilling or underdelivery” –
Refers to a sale, transfer, delivery or filling of petroleum products of a
quantity that is actually beyond authorized limits than the quantity indicated
or registered on the metering device of container. This refers, among others, to the quantity of
petroleum products delivered by metered dispensing pumps in petroleum retail
outlets or to liquefied petroleum gas in cylinder or to lube oils in packages.
“Hoarding” – the undue accumulation
of a trader of petroleum and/or petroleum products beyond his or its normal
inventory levels, and/or unjustified refusal to dispose of, sell or distribute
the same to consumers; or the unreasonable accumulation by a person other than
a trader of petroleum and/or petroleum products.
“Overpricing” – the sale of
petroleum and/or petroleum products at prices in excess of those duly
authorized by the [Government]
Board of Energy.
“Misuse of allocation” – the sale,
transfer or diversion of mandated petroleum fuel allocation by oil companies,
distributors, dealers or consumers contrary to the declared intent of the
Government in making such allocation.”
SEC. 3. The
same
Act is further amended by inserting between
Sections three and four thereof, a new Section which shall read as follows:
“SEC. 3-A. Rules
and Regulations; Administrative Sanctions for Violation Thereof.
–
The
Bureau of Energy Utilization shall issue
such rules and regulations as are necessary to carry into effect the provisions
of this act, subject to the approval of the
Minister
of Energy, after consultation with the affected industry sectors. Said rules and regulations shall take effect
fifteen (15) days from the date of its publication in two (2) newspapers of
general circulation.
“The
Bureau of Energy Utilization is
empowered to impose in an administrative proceeding, after due notice and
hearing, upon any person who violates any provision of such rules and
regulations, a fine of not more than ten thousand pesos (P 10,000.00) or to
suspend or remove the license or permit of a hauler, marketer, refiller,
dealer, sub-dealer or retail outlet: Provided, That hearing in any
administrative proceedings may be waived by respondent: Provided,
further, that during the pendency of such administrative proceeding, the
bureau may suspend the business operations of such hauler, marketer, refiller,
dealer, sub-dealer or retailer or retail outlet operator when the suspension is
consistent with the public interest.
Administrative proceedings shall be decided within thirty (30) days
after filing of the last responsive pleading by the respondent, or termination
and completion of the administrative proceeding.
“All law enforcement and other
concerned agencies of the government shall assist the
Bureau of Energy
Utilization in the implementation of this section.
“The administrative sanction that may
be imposed shall be without prejudice to the filing of a criminal action as the
case may warrant.”
SEC. 4.
Section four of the same
Act is amended to read
as follows:
“SEC. 4. Penalties. – Any person who commits any act herein
prohibited shall, upon conviction, be punished with a fine of not less than [two]
TWENTY thousand pesos [P 2,000.00] (P 20,000.00) but not more than [Ten] FIFTY
thousand pesos [P 10,000.00] (P 50,000.00), or imprisonment of at least two (2)
[months] YEARS but not more than [one (1)] FIVE (5) years, or both, in the
discretion of the court. In cases of
second and subsequent conviction under this act, the penalty shall be both fine
and imprisonment as provided herein.
Furthermore, the petroleum and/or petroleum products subject matter of
the illegal trading, adulteration, shortselling, hoarding, overpricing [and] OR
misuse, shall be forfeited in favor of the Government: Provided,
That if the petroleum and/or petroleum products have already been delivered and
paid for, the offended party [the payment made] shall be indemnified twice the
amount paid [the subject of forfeiture] and if the seller who has not yet
delivered has been fully paid, the price received shall be returned to the
buyer with an additional amount equivalent to such price; and in addition, if
the offender is [a trader] an oil company, marketer, distributor, refiller,
dealer, sub-dealer and other retail outlets, or hauler, the cancellation of his
license.
“Trials of cases arising under this
Act shall be terminated within the thirty (30) days after
arraignment.
“When the offender is a corporation,
partnership, or other juridical person, the president, general manager,
managing partner, or such other officer charged with the management of the
business affairs thereof, or employee responsible for the violation, shall be
criminally liable, in case the offender is an alien, he shall be subject to
deportation after serving the sentence.
“If the offender is a government
official or employee, he shall be perpetually disqualified from office.”
SEC. 5. All
laws, decrees, orders, instructions, rules and regulations which are
inconsistent with, or contrary to, the provisions of this Act are hereby
repealed or modified accordingly.
SEC. 6.
This decree shall take effect upon its approval.
Done in the City of
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