The Department of Energy is moving to fully
implement the LPG law with the active participation of industry partners. Through
a series of symposiums spearheaded by LPG brand Solane, DOE directly addressed
concerns raised by LPG retailers and distributors on the provisions of the LPG
Industry Regulation Act.
The move comes as DOE set a July 7 deadline
for LPG players to secure a License to Operate and other necessary permits to
be able to operate legally.
Along with representatives of the Department
of Trade and Industry, the Bureau of Fire Protection, and various local
government units, DOE reached out to over 3,000 LPG players nationwide through
the series of Solane Retailer Trade Outlets (RTO) Symposium. This was done in 20
key areas nationwide with LPG retailers, dealers, and stakeholders,
complementing the series of LPG Regional Summits organized by the DOE
nationwide.
“The RTO Symposium is our way of showing
our unwavering support to the LPG Law as we commit to working closely with
government agencies and our retail partners to help ensure their tasks and
responsibilities under the law are fulfilled and carried through,” said Tonito
Gonzalez, CEO of Isla LPG Corp.
During the series of symposiums, DOE provided
clarity on several critical provisions in LIRA, including the extension of LTO
compliance for retailers and distributors, amid marketers and refilling plants'
LTO applications still being under DOE’s review and assessment. The DOE assured
it will continue to accept and process applications for the issuance of permits
to qualified LPG participants even after the deadline.
LIRA implementation expected to solve
pressing challenges encountered per region
(L-R)
Marvin Castor – Liaison Officer, Isla LPG Corp.; Rene Gamba – B2C National
Sales Manager, ILC; Engr. Joey Maleza – Energy Industry Management Division
Chief, Department of Energy; Banjo Castillo – Chief Operating Officer, Isla
Petroleum & Gas Corporation; Francis Yu – President, Association of Solane
Distributors, Inc.
During the series of events, DTI,
BFP, and local governments pledged their support to DOE and LIRA by noting that
they are issuing their respective Department Circulars, manpower, and logistics
for the full implementation of the law. DOE also expressed
appreciation for the support received from industry associations such as the
LPG Industry Association and LPG Marketers Association.
The symposium also enabled government partners to
assess the common concerns of LPG players per region, including unique
situations in their respective LPG trades. According to Marvin Castor, Solane
LPG Liaison Officer, among the most common challenges encountered by LPG
partners in Luzon is the presence of unauthorized and non-compliant LPG sellers
and refillers.
“Unfair trade practices remain a challenge as illegal
refilling plants are rampant. This is supported by Solane LPG’s brand
protection activities, wherein as of July 2023, we have already confiscated PHP
338,300 worth of counterfeit and illegally refilled Solane LPG products and paraphernalia
in ten raids nationwide,” Castor noted.
In Cagayan alone, agents of
the Philippine National Police Criminal Investigation and Detection Group, in
collaboration with Solane LPG and Petron, were able to seize PHP 1.5 million worth of fake and illegally produced LPG tanks,
seals, and paraphernalia.
“Meanwhile, for our retailers in Visayas, the
inter-island LPG transport regulation is critical, while for those in Mindanao,
they’ve raised concerns on the regulations on LPG canisters,” Castor added.
Signed in 2021, the Republic Act 11592, or LPG
Law aims to protect consumers from LPG malpractices, including the sale of
counterfeit and illegally refilled LPG cylinders, which are prone to leakages
that may cause explosions or massive fires.
“Consumers are expected to benefit when LIRA takes
full effect by having safe, legitimate, and properly filled LPG cylinders in
their kitchens,” said Castor. “They are hoping that LIRA will not make LPG more
expensive with the reduction of substandard LPG products in the market.”
Castor added that the LIRA is also expected to provide
consumers with the right to choose their preferred LPG brand through its
provision of cylinder swapping.
Several of Solane LPG’s retailers and
distributors, meanwhile, expressed optimism that the implementation of the law will
put an end to unfair business practices in the market.
“By attending the symposium and getting a
chance to understand the law from the resource speakers, LPG business owners
were able to see LIRA as a game changer in the industry, in terms of bringing
about fair trade practices and safe business conduct,” concluded Castor.
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