Whereas,   pursuant   to  Section   5  (k)  of  Chapter   1  of  Republic   Act  7638 (Department  of  Energy  Act  of  1992),  the  Department  of  Energy  (DOE)  shall formulate rules and regulations as may be necessary to guide the operations of both government and private entities in energy resource supply and distribution;

Whereas,  pursuant  to  Republic  Act  Nos.  7638  and  8479  (Downstream   Oil Industry Deregulation Act of 1998), Batas Pambansa Blg. 33 as amended by Presidential   Decree   1865   (Defining   and   penalizing   certain   prohibited   acts involving  petroleum  products),  and  under  pertinent  rules  and  regulations,  the DOE has the power to monitor,  supervise  and regulate  the petroleum  industry and impose corresponding administrative penalties for violations thereof;

Whereas,  the  DOE  has  issued  Department  Circular  (DC)  No.  2000-05-007, requiring among others the conformance to Product Standard/Import  Commodity Clearance (PS/ICC) and other mandatory markings for all LPG cylinders in circulation;

Whereas, the DOE has issued DC No. 2000-06-010 entitled œRevised Schedule of Penalties in the LPG Industry , specifically Section 8, which provides for the requirement of a distinctive design within two (2) years after the effectivity of the said Circular;

Whereas, the Bureau of Philippine Standards (BPS) of the Department of Trade and Industry (DTI) has amended and promulgated Philippine National Standards (PNS) 03-1:2014 entitled œTransportable and refillable welded steel cylinders for liquefied petroleum gas (LPG) - Part 1: Specification , specifying, among others, additional mandatory markings to be indicated on the body of the cylinders with water capacity up to 150 liters, specifically on the small-sized 2.7 kg cylinders;

Whereas,  it has come  to the attention  of the DOE  that there  is a substantial number of small-sized 2.7 kg LPG cylinders circulating in the market without the required œFor Outdoor Use Only  markings to warn the consumer that the product shall be used only for outdoor area;

Whereas,  compared  to the  standard  11  kg  capacity  household  cylinders,  the small-sized 2.7 kg cylinder does not have safety features for indoor cooking, i.e., pressure relief valve, regulators, shut off device, and thus are advised to be used only for outdoor cooking. Proper outdoor ventilation prevents the accumulation of LPG vapor which when confined in an enclosed space would result in a violent explosion;

Whereas, in consideration of the foregoing, the following guidelines are hereby promulgated to govern these concerns:


SECTION  1.  Short  Title  -  This  Department  Circular  shall  be  known  as  the œAdditional Mandatory Markings for Small-Sized 2.7 KG LPG Cylinder and below of 2018. 

SECTION  2. Coverage  - This Department  Circular shall apply to all person or entities engaged in any and all activities involving the commerce of Liquefied Petroleum Gas (LPG).


SECTION 3. Required Mandatory Markings - Each small-sized 2.7 kg cylinder and below shall have œembossed   markings  of the brand name or name of the owner  and shall  be placed  on the shoulder  of the cylinder  and not along  the knuckle radius. For purposes of this Circular, the œknuckle radius  is the curved part on the upper and lower part of the cylinder. In no way shall œname plating  or any other means of indicating cylinder ownership, especially through application of hot works, shall be allowed on any part of the cylinder.

The following minimum requirements shall be silk-screened on the body of the cylinders:

1.    Brand name and logo;
2.    Net content in kg;
3.    Tare weight in kg;
4.    Date of requalification (month/year);
5.    Safety warnings and other informational signs as prescribed; and
6.    For 2.7 kg capacity and below cylinders and below, an additional marking of œFOR OUTDOOR USE ONLY. 


SECTION 4. Offenses And Penalties - Penalties and sanctions for violations of this  Circular  shall  be  covered  by  existing  regulations,  including  DOE  DC  No.

2000-06-010 ( œRevised Schedule of Penalties in the LPG Industry of 2000 ), and DOE DC No. 2014-01-0001  ( œLPG Industry Rules ), or amendments  thereto, to wit;

1.    DC No. 2014-01-0001

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Section 24. Illegal Trading. The following shall constitute Illegal Trading:
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e)   Sale   of  LPG   in  cylinders   that  do  not  conform   with  the  PNS   on manufacture, requalification and repair of LPG cylinders, such as:

1)     Without required markings;

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Section  25. Illegal Refilling,  which is committed  under any of the following circumstances:

c)   Refilling   of  LPG  cylinder  without  the  embossed   markings   or  other indication  of  the  brand  or  trade  name  thereof,  or  bearing  defaced, tampered or illegible markings contrary to the mandatory labeling and stamping requirements under this Act;

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RULE IX
ADMINISTRATIVE  FINES AND SANCTIONS

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e)   Any  person  or  entity  who  violates  any  provision  of  this  Circular  not covered by DOE Circular No. 2000-06-010 shall be penalized by a fine of P10,000  for every  prohibited  act or P5,000,  per cylinder,  whichever  is higher.

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2.    DC No. 2000-06-010

ARTICLE II TABLE OF OFFENSES AND THEIR CORRESPONDING PENALTIES

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Section 8. No Trade Name, Unbranded  LPG Cylinders,  No Serial Number, No Distinguishing  Color, No Embossed  Identifying  Markings  on Cylinder or

Distinctive Collar or Design (Requirement on Serial Number and Distinctive Collar or Design Shall Take Effect Two (2) Years After Effectivity of This Circular).

A. LPG REFILLER/MARKETER

1st Offense - Fine of P4,000 for each cylinder    
2nd Offense - Fine of P5,000 for each cylinder    
3rd    Offense   -   Recommend   business   closure    to    the    proper    local government unit                

B.  DEALER 
            
1st Offense - Fine of P3,000 for each cylinder
2nd Offense - Fine of P4,000 for each cylinder                
3rd    Offense   -   Recommend   business   closure    to    the    proper    local government unit                

C.  LPG RETAIL OUTLET
              
1st Offense - Fine of P1,000 for each cylinder
2nd Offense - Fine of P2,000 for each cylinder                
3rd    Offense   -   Recommend   business   closure    to    the    proper    local government unit                

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SECTION  5. TRANSITORY  CLAUSE  - Provisions  to complement  this Circular may be issued subsequently, as necessary.

SECTION 6. EFFECTIVITY AND PUBLICATION  - This Circular shall take effect immediately upon its publication in two (2) newspapers of general circulation.

Bonifacio Global City, Taguig City.