RA 11592 — LPG Industry Regulation Act of 2021

Signed: October 14, 2021 Effective: ~October 29, 2021 (15 days after publication)

RA 11592 establishes the comprehensive regulatory framework for the LPG industry in the Philippines, from importation through retail sale. The DOE is the lead agency (§5), supplemented by the DTI (product standards and vessel certification), BFP (fire safety), LTO/LTFRB (transport), MARINA (marine), DILG/LGUs (local enforcement), and DENR (disposal). All LPG industry participants must hold DOE licenses to operate. The law creates two industry-wide consumer programs: the LPG Cylinder Exchange and Swapping Program (§31) and the LPG Cylinder Improvement Program (§32), and references the EVOSS permitting system (§49). See also Downstream Oil Industry for overall downstream oil framework.

Note: Pass 1 (§1–32) covers the regulatory framework. Pass 2 (§33–58) adds monitoring, prohibited acts, penalties, and final provisions below.

§1–2 — Title and Policy

Short title (§1): “LPG Industry Regulation Act” [RA 11592, §1, 2021]

Policy (§2): Protect end-consumer interests; establish health, safety, security, environmental, and quality standards for the entire LPG supply chain (importing, refining, storing, exporting, refilling, transportation, distribution, marketing, and LPG pressure vessel lifecycle); promote consumer freedom of choice and competition; support technological innovation. [RA 11592, §2, 2021]

§3–4 — Scope and Definitions

Scope (§3): Applies to: (a) importing, refining, storing, exporting, refilling, transportation, distribution, and marketing of LPG; (b) importation, manufacture, requalification, repair, exchange, swapping, improvement, and scrappage of LPG pressure vessels; (c) safe operations of the entire LPG industry including residential, commercial, industrial, and automotive use. [RA 11592, §3, 2021]

Key Definitions (§4)

[RA 11592, §4, 2021]

§5–14 — Role of Government Agencies

DOE — Lead Agency (§5–6)

The DOE is the primary government agency for implementation and enforcement of RA 11592, supplementing its mandates under RA 7638 (DOE Act) and RA 8479 (Downstream Oil Deregulation Act). [RA 11592, §5–6, 2021]

Key DOE powers and functions:

• Prepare the LPG Industry Development Plan (integrated into PEP) in consultation with stakeholders (§6(a))
• Implement and ensure compliance with PNS and quality/safety standards for all LPG facilities, pressure vessels, and ancillary equipment (§6(b))
• Issue, suspend, and revoke licenses to operate (DOE has exclusive authority) — valid 3 years; enforceable via closure and cease and desist orders (§6(c))
• Direct trademark owners to submit LPG pressure vessels for periodic requalification (§6(d))
• Convene technical working groups with public and private stakeholders for policies, regulations, and standards (§6(e))
• Approve and authorize LPG seals of trademark owners and marketers (§6(f))
• Investigate motu proprio or on complaint; impose/collect fines and penalties; initiate administrative or criminal action (§6(g))
• Confiscate, recall, seize, and impound noncompliant, defective, unsafe, or dangerous LPG pressure vessels (§6(h)) — generic cylinders in market at effectivity with no illegal import: exempt until end of LPG Cylinder Improvement Program transition period
• Exercise visitorial powers: inspect premises, records (except trade secrets), seals, ancillary equipment, and pressure vessels including in transit (§6(i))
• Create and maintain central database of LPG industry participants and supply inventory; publish in newspaper/website list of revoked licenses (§6(j)–(l))
• Formulate with DTI the LPG Cylinder Exchange and Swapping Program and LPG Cylinder Improvement Program guidelines (§6(m))
• Conduct information, education, and communication with DTI/DILG/BFP on LPG health, safety, security, environmental, and quality standards (§6(n))
• Conduct R&D with DOST on new LPG technologies and pressure vessel improvement (§6(o))

DTI (§7)

• Develop and promulgate PNS for all LPG facilities, vessels, and ancillary equipment in collaboration with DOE and stakeholders (§7(a))
• Accredit requalifiers and issue certificates; certify manufacturers, importers, and repairers of LPG pressure vessels (§7(b)–(c))
• Determine requalification frequency for LPG pressure vessels (§7(d))
• Inspect, evaluate, and confirm PNS compliance for LPG pressure vessels and ancillary equipment via licenses/certificates per RA 4109 (§7(e))
• Grant and revoke licenses and certificates of LPG industry participants (§7(f))

[RA 11592, §7, 2021]

BFP (§9)

Strictly implements RA 9514 (Fire Code of the Philippines) on manufacturing, storage, handling, use, and transportation of LPG — including fire safety devices and relevant permits/certificates. Issues guidelines and regulations governing fire safety of LPG facilities. Participates with DOE and LTO in formulating transport guidelines (§37). [RA 11592, §9, 2021]

LTO and LTFRB (§10)

Issue guidelines and regulations governing: (a) auto-LPG motor vehicles (including public utility vehicles) and related facilities; (b) authorized motor vehicles transporting LPG in bulk and LPG cylinders/cartridges — jointly with DOE and BFP. [RA 11592, §10, 2021]

MARINA (§11)

Issues guidelines and regulations governing marine vessels transporting LPG and LPG pressure vessels, upon coordination with DOE and in consultation with stakeholders. [RA 11592, §11, 2021]

LGUs (§12)

• Assist DOE in identifying areas for impounded LPG pressure vessels, motor vehicles, and equipment
• Coordinate with DOE on transporting, hauling, storing, decanting, and disposing confiscated LPG and vessels
• Suspend or revoke business permits of LPG industry participants upon DOE notice of license suspension/revocation; communicate to DOE within 5 days

[RA 11592, §12, 2021]

PNP and Law Enforcement Agencies (§13)

Assist DOE upon request for inspections of LPG facilities and motor vehicles transporting LPG. [RA 11592, §13, 2021]

DENR (§14)

Issues disposal guidelines for LPG, LPG-contaminated water, and LPG pressure vessels jointly with DOE. [RA 11592, §14, 2021]

§15–22 — Responsibilities of LPG Industry Participants

All LPG industry participants must: (a) ensure PNS compliance for all LPG, facilities, vessels, and equipment; (b) observe safe LPG handling; (c) train drivers/attendants for proper handling; (d) transact only with registered/licensed LPG industry participants. [RA 11592, §15, 2021]

Bulk Supplier (§16)

Must ensure adequate and stable supply of LPG in bulk; submit certifications to DOE on contracts/agreements with bulk consumers. [RA 11592, §16, 2021]

Bulk Distributor (§17)

Must ensure adequate and stable supply; submit certifications to DOE on contracts/agreements with other participants; ensure periodic requalification of LPG pressure vessels and calibration of measuring devices. [RA 11592, §17, 2021]

Hauler (§18)

Submit DOE list of authorized motor vehicles; comply with transportation safety standards (§37); submit certifications on contracts/agreements with participants. [RA 11592, §18, 2021]

Refiller (§19)

Must: (a) fill under own or authorized trademark only; (b) fill accurately to required exact net content; (c) test weight and conduct leak test before LPG cylinder leaves refilling plant; (d) refill only PNS-compliant cylinders bearing DTI safety and quality marks; (e) refuse to refill cartridges or non-refillable vessels; (f) periodically check dealers and retail outlets for content compliance and calibrated measuring devices. [RA 11592, §19, 2021]

Trademark Owner or Marketer (§20)

Must: carry own trademark on pressure vessels; ensure adequate/timely supply and correct weight of LPG-filled cylinders; register color/marking scheme and LPG seals with DOE; maintain/repair all pressure vessels through licensed/accredited operators; provide servicing and technical assistance to dealers and end-consumers; periodically check dealer/retail outlet compliance. [RA 11592, §20, 2021]

Dealer (§21) and Retail Outlet (§22)

• Dealers: carry only trademark of contracted refiller or marketer; sell only with authorized LPG seal; provide accurate measuring devices; ensure correct weight; provide servicing and technical assistance to retail outlets and end-consumers
• Retail outlets: sell only authorized trademark cylinders/cartridges; sell only with proper authorized seals; provide accurate measuring devices; request trademark owner/marketer to provide qualified service person for end-consumers

[RA 11592, §21–22, 2021]

§23–26 — Registration, Licenses, and Permits

License to Operate (§24): Every LPG industry participant must secure a DOE license to operate for each specific activity, specific to site/plant/outlet, before commencing commercial operations. Must be publicly posted. Valid 3 years. New activity = new license. All transactions only with licensed participants. DOE has exclusive authority to issue. Existing participants at effectivity: 6 months to obtain from IRR promulgation. [RA 11592, §24, 2021]

Pre-construction registration (§23): Bulk suppliers, refillers, and bulk consumers must register with DOE before commencing construction of terminals and refilling plants. [RA 11592, §23, 2021]

Bulk consumers and centralized LPG piping systems (§25): Must register with DOE (not full license to operate, unless engaging in another LPG activity). Registration does not exempt from compliance with quality/safety requirements. [RA 11592, §25, 2021]

DTI Certificates (§26): Importers, requalifiers, manufacturers, and repairers of LPG pressure vessels must obtain DTI certificates/licenses prior to commercial operations. Existing participants: 6 months from IRR. [RA 11592, §26, 2021]

EVOSS integration (§49): All permits and licenses under this Act are governed by the EVOSS Act (RA 11234) procedures. The EVOSS Steering Committee is directed to streamline LPG industry permitting. [RA 11592, §49, 2021]

⚠ Discrepancy to verify: The implementing circular DC2022-11-0037 (Rule 4) states LTO validity is five (5) years. This page records “3 years” from §6(c) and §24. One of these readings may have an error — the raw source source/laws/ra-11592.md should be checked against Rule 4 of source/regulations/dc2022-11-0037.md.

§27 — Auto-LPG

Any LPG industry participant importing/manufacturing auto-LPG containers and engines, installing or retrofitting auto-LPG systems, or operating auto-LPG conversion shops must comply with requirements issued by DTI and LTO and pertinent agencies including BFP. Operators of auto-LPG dispensing stations comply with DOE requirements (§6). [RA 11592, §27, 2021]

§28–30 — Ownership of LPG Pressure Vessels

LPG cylinders (§28): Ownership = trademark owner whose permanent or durable marking appears on the cylinder. The trademark owner is responsible for quality and safety standards of all its cylinders. Lost/stolen/missing cylinders reported to DOE: receipt of notification prima facie relieves the trademark owner of quality/safety obligation for those cylinders. [RA 11592, §28, 2021]

Auto-LPG containers (§29): Permanently installed in vehicle and inherent part thereof. Ownership = owner of the motor vehicle. [RA 11592, §29, 2021]

§31–32 — LPG Cylinder Programs

LPG Cylinder Exchange and Swapping Program (§31)

Within 6 months from IRR effectivity, DOE (with DTI; in consultation with all LPG industry participants, consumer groups, and other stakeholders) must formulate and publish an LPG Cylinder Exchange and Swapping Program covering: exchange/swapping/buyback procedure and timeline; establishment of accredited LPG cylinder swapping centers. [RA 11592, §31, 2021]

Governing principles:

• Aligned with LPG Cylinder Improvement Program
• Safety paramount for end-consumer protection
• End-consumer has freedom of choice in purchase of LPG-filled cylinders
• All LPG industry participants must participate
• All arrangements/agreements: fair, reasonable, and nondiscriminatory terms
• Any arrangement that may significantly increase retail price of LPG-filled cylinders: subject to consultation with consumer groups and participants

DOE and DTI shall create a task force with stakeholders to assist implementation. [RA 11592, §31, 2021]

LPG Cylinder Improvement Program (§32)

Within 6 months from IRR effectivity, DOE (with DTI; in consultation with participants and stakeholders) must formulate and publish an LPG Cylinder Improvement Program covering: entities responsible; fund amount; allowed uses and authorized entities; procedures for access and audit. [RA 11592, §32, 2021]

Governing principles:

• Aligned with LPG Cylinder Exchange and Swapping Program
• Safety paramount
• All LPG industry participants must participate
• Generic LPG cylinders and cylinders without trademark owners: first requalified, then permanently marked with the trademark of the last-possessing trademark owner; that trademark owner becomes the owner
• Program does not apply to illegally imported or defective/injurious/unsafe/dangerous cylinders
• All arrangements: fair, reasonable, and nondiscriminatory
• Price-increasing arrangements: subject to consumer group consultation

Transition period: DOE and DTI determine appropriate transition period for permanent marking of all generic/unbranded cylinders in market — not to exceed 3 years from LPG Cylinder Improvement Program effectivity. [RA 11592, §32, 2021]

§33–34 — Monitoring and Enforcement Mechanisms

Reports and Disclosures (§33): DOE may require LPG industry participants to submit written or electronic forms and reports. DOE is prohibited from sharing or disclosing trade secrets, proprietary data, and other legitimate commercial information with the public or other participants. [RA 11592, §33, 2021]

Central Database (§34): DOE maintains a central database (open to the public) updated monthly, including:

• Corporate/business/trade name of participant
• Registered trademark, logo, and LPG pressure vessel identification
• Certifications on contract/agreement parties
• List of lost, stolen, and missing LPG cylinders
• Violations committed and related incidents
• Other information as determined by DOE (excluding trade secrets)

[RA 11592, §34, 2021]

§35–36 — LPG Cylinders and Cartridges

Defective/Unsafe Cylinder Declaration (§35): When DOE finds motu proprio or on complaint that an LPG cylinder/cartridge is uncertified, generic, substandard, defective, injurious, unsafe, or dangerous — after due notice — it issues an immediate confiscation/recall/seizure/impoundment/prohibition order. The concerned owner has the opportunity to be heard. DOE must terminate proceedings and make final determination within 30 calendar days from issuance of the order. LPG-filled cylinders that pose imminent threat or are in danger of exploding may be disposed of without prior notice; owner notified within 5 calendar days. [RA 11592, §35, 2021]

Note on generic cylinders: Duly requalified generic cylinders already in the market at effectivity that were not illegally imported are allowed until lapse of the transition period under §32.

LPG Cartridges (§36): Unlawful for any person to refill an LPG cartridge or sell/trade/distribute non-compliant cartridges. [RA 11592, §36, 2021]

§37 — Transport of LPG

All motor vehicles transporting bulk LPG and filled/unfilled LPG cylinders and cartridges must comply with DOE (§6), LTO (§10), and BFP (§9) guidelines. [RA 11592, §37, 2021]

§38–46 — Prohibited Acts and Penalties

Prohibited Acts (§38–40)

§38 enumerates six categories of prohibited acts:

[RA 11592, §38, 2021]

Underfilling (§39): Refiller is liable for underfilling when net LPG in vessel sold/filled is less than required at the refilling plant. Dealer/retail outlet is liable when net LPG in vessel sold/delivered is less than required content quantity. Broken/tampered/absent/removed seal = prima facie evidence of underfilling. [RA 11592, §39, 2021]

Illegal Refilling (§40): Prohibited acts include: filling vessels with non-LPG products to achieve correct net weight; filling directly from bulk storage tank trucks; unauthorized cross-filling; refilling from one cylinder to another; refilling outside duly licensed refilling plants; refilling defaced/tampered/PNS-non-compliant/overdue-for-requalification cylinders; refilling by auto-LPG dispensing stations; unauthorized loading of bulk storage tanks. [RA 11592, §40, 2021]

Penalties (§41)

[RA 11592, §41, 2021]

Violations by juridical entities (§42): Criminal penalty of imprisonment imposed on responsible directors or officers personally. Lack of corporate personality is not a defense for unregistered entities. New juridical entity formed by persons previously found in violation for the third time = permanent disqualification. [RA 11592, §42, 2021]

Preventive Suspension (§45): DOE may preventively suspend an LPG industry participant’s operations during pending proceedings for a maximum of 45 calendar days to prevent evidence tampering. [RA 11592, §45, 2021]

Administrative Proceedings (§44): DOE initiates via show cause order; participant has opportunity to explain in writing; proceedings must not exceed 60 calendar days from show cause order to final resolution. DOE may conduct hearing or impose penalty based on merits of written explanation. [RA 11592, §44, 2021]

Impoundment (§46): DOE authorized to impound prohibited LPG, vessels, ancillary equipment, and motor vehicles as evidence. Final disposal subject to DOE or court final resolution. [RA 11592, §46, 2021]

§47–58 — Final Provisions

Fine sharing (§47): 40% of fines collected by DOE from LPG industry participants goes to the city or municipality of the participant’s principal business address; 60% retained by DOE for implementation (information dissemination, capacity building, R&D). [RA 11592, §47, 2021]

LGU use of share (§48): LGU share from fines used exclusively for transporting, hauling, storing, decanting, and disposing confiscated LPG, vessels, and ancillary equipment. [RA 11592, §48, 2021]

EVOSS integration (§49): All permits and licenses under this Act governed by RA 11234 (EVOSS Act) procedures. EVOSS Steering Committee directed to streamline LPG industry permitting and continues its mandate. [RA 11592, §49, 2021]

Dedicated Office (§50): DOE shall establish a dedicated office for implementation. Organizational structure and staffing by DOE Secretary in consultation with DBM. Initial funding from current DOE appropriations; thereafter from annual GAA. [RA 11592, §50, 2021]

Congressional Oversight (§54): The Joint Congressional Energy Commission (JCEC) exercises oversight over implementation of this Act. [RA 11592, §54, 2021]

IRR (§52): DOE, together with DTI, and in consultation with other agencies and stakeholders including consumer groups, must promulgate the IRR within 60 days from effectivity. All other guidelines/regulations mandated: within 60 days from IRR promulgation (except Cylinder Exchange/Improvement Programs per §31–32). [RA 11592, §52, 2021]

General transition period (§53): DOE determines transition period for compliance — not to exceed 6 months from IRR effectivity. [RA 11592, §53, 2021]

Repealing clause (§57): All laws, decrees, executive orders, proclamations, and administrative regulations or parts thereof inconsistent with RA 11592 are repealed or modified. (Partial repeal — no specific earlier statute is named.) [RA 11592, §57, 2021]

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