DOE tightens rules on LPG sale

MANILA, Philippines - The Department of Energy (DOE) has tightened its rules covering the liquefied petroleum gas (LPG) industry through the issuance of a circular requiring LPG players to secure a Standard Compliance Certificate (SCC).

Under the circular, all importers, suppliers, refiners, refillers, marketers, distributors, haulers, transporters, handlers, storers, retailers, sellers and dealers of LPG must have an SCC to be able to transact with other LPG industry players and sell to consumers.

The circular will serve as a safeguard for LPG customers as it will discourage those who are illegally selling LPG without proper clearances, the DOE said.

LPG players are also encouraged to contract a portion of their requirements to secure their supply and avoid supply uncertainty.

Violators of the  circular will be sanctioned with administrative charges and fines by the DOE, the department said  in  the circular.

With the issuance of the circular, all existing LPG establishments shall be given three months to fully comply with the rules.

This developed as the DOE said the decision not to include the Shell Gas Eastern Inc. (SGEI) facility in the sale of Shell’s domestic LPG business to Isla Gas, and its decommissioning since November 2013, will only have an isolated effect to the independent refillers and marketers, specifically in Southern Luzon.

LPG supply in the country is sufficient, including in Southern Luzon, but there may be logistical challenge for some LPG marketers and refillers in area, the DOE said.

 â€œThere is sufficient supply of LPG in the entire country despite some companies’ divestment in the LPG industry, which is, as we understand, are business decisions,” Energy Secretary Carlos Jericho L. Petilla said.

Solane has already contracted its requirements with Liquigaz in Bataan to fill the supply gap due to the SGEI facility closure.

The DOE continues to implement its monitoring and close coordination with industry players to ensure sufficient supply in the market, Petilla said.

He also said LPG players must implement  a price rollback next week if the international price of LPG is lower for February compared to January.