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Department Circular No. DC2017- I!- OO]

Fuels

Prohibited Act

3. Non-compliance with Section 12

Rule III on Minimum
Requirements for
Outlets (Fixed and permanent
dispensing pump, deliveries and
retailing conducted only within the
premises, fuels stored in
underground storage tanks)

Facility
Existing Retail

Non-compliance with Section 13
Rule III on Liquid Fuels Storage,

Handling, Transfer and/or
Dispensing
The storage, handling, transfer

and/or dispensing of Liquid Fuels
shall be subject to the following:

a. Liquid Fuels shall _—be
delivered, received and dispensed at
all times only within the business
premises of a Retail Outlet;

b. Liquid Fuels shall be
transferred only from UGT by means
of fixed dispensing Pumps designed
and equipped to allow the controlled
flow of the Liquid Fuels and prevent
leakages or accidental discharges;

c. Liquid Fuels shall only be
dispensed to appropriate containers
as defined in Rule I Section 3s

d. Liquid Fuels shall not be
dispensed into drums, barrels,
bottles or “bote-bote”, or such

similar containers;

€. Liquid Fuels shall not be sold
in drums, barrels, bottles or “bote-
bote”, or such similar containers;

f. Liquid Fuels shall not be
discharged into any street, highway,
drainage canal or ditch, storm drain
or flood control channel, lake or
tidal waterway, or directly into the
ground;

Penalty

1° Offense 2"° Offense 3° Offense

P10,000.00 with P10,000.00 and
directive to Recommend
comply. revocation of
the permit or

license to LGU.

P10,000.00 with P10,000.00,

directive to Revocation of
comply. COC and
Recommend

revocation of
the permit or
license to LGU.

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Penalty
Prohibited Act

1** Offense 2™ Offense 3'¢ Offense

g. Liquid Fuels shall be sold and
dispensed to customers regardless
of quantity and amount, directly to
the vehicles’ fuel tank; and

h. Liquid Fuels shall be sold
consistent with the price indicated in
the dispensing pump and the price
display board.

The use of appropriate container
may be allowed with the condition
that it is only for transporting the
Liquid Fuels to their place of
use/consumption and not for long
term and constant use to store
Liquid Fuels. The Liquid Fuels Retail
Outlet shall provide appropriate
containers given the cited condition.

In addition, a Retail Outlet or
company or any entity/person who
supplies Liquid Fuels to any person
selling or dispensing such Liquid
Fuels through the use of drums,
barrels, bottles, or “pote-bote”,
shall be deemed to be committing
Illegal Trading.

Non-compliance with Section 15 P10,000.00 with | P10,000.00 and
Rule IV on Types and Facility directive to Revocation of
Requirements comply. COC and
Recommend
revocation of
the permit or
license to LGU

Non-submission or} P10,000.00 with | P10,000.00 and
misrepresentation or misdeclaration directive to Recommend
of Documentary Requirements as comply. revocation of
stipulated in Section 6(c) the permit or
license to LGU
Failure to Post COC ina conspicuous Warning with P10,000.00 P10,000.00,
place, where a Retail Outlet does not | directive to post | with directive to | Revocation of
or fails, or refuses to post the COC| within 30 days. A comply COC and
in the premises. penalty of Recommend
P10,000.00 shall revocation of
be imposed for the permit or
failure to comply license to LGU
within the said
period.

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Prohibited Act
8. Non-compliance with Section 22
Rule V on posting requirements
a. Non-posting of RON, E10 and Bx
stickers at the dispensing pump
b. Posting of wrong RON
c. Posting the terms “unleaded”,
“lead-free’, and other marketing |
tools to the public
d. Posting of updated prices in
price display board for each
Liquid Fuels
e. Posting of conflicting prices in
the dispensing pump and in
price display board
f. Non-posting of consumer safety
and informational signs in the’
business premises
9. Non-issuance of official receipt after
every sale of Liquid Fuels
10. Refusal or Failure to Pay
Fine/Penalty within the period
prescribed by DOE
11. Absence and/or unauthorized
removal of an “Out-of-Order” sign
or padlock

Department Circular No. DC2017-_ Ii 001!

Fuels

Penalty

1* Offense 2™ Offense

Warning with P10,000.00 P10,000.00,
directive to post | with directive to Revocation of
within 30 days. comply. COC and

A penalty of Recommend

P10,000.00 shall
be imposed for
failure to comply
within the said
period.

revocation of
the permit or
license to LGU

P50,000.00 with

P100,000.00

P200,000.00,

directive to with Cease and issuance of
comply. Desist Order. | closure Order,
Revocation of
COC and
Recommend
revocation of
the permit or
license to
LGU,
Amount of
fine/penalty
imposed,
issuance of

closure Order,
Revocation of
COC and
Recommend
revocation of the
permit or license
to LGU.

Amount of
fine/penalty
imposed, Closure
of RO and
reiteration of
Notice of
Violation to oil
company/supplier
and LGU,

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Prohibited Act

12. Failure to maintain a calibrated and
sealed dispensing pump

13. A dispensing pump with a broken or
with no seal

Failure to comply with Test Measure
Requirements

15. Failure to maintain a written record
or logbook

Sale of Liquid Fuels from dispensing
pump with broken or no seal and
with no “Out-of-Order” sign or
padlock installed

ADULTERATION, The Possession and
sale of Liquid Fuels that do not conform
with quality standards pursuant to the
PNS and Biofuels Law shall be
governed and sanctioned by that Act

14.

16,

and its Implementing Rules and
Regulations
- UNDERDELIVERING. Quantity of

Liquid -Fuels delivered by dispensing
pumps is less than the actual quantity
by more than fifty (50) - millilitres for
every ten (10) litres as measured by a
calibrating bucket

REFUSAL/OBSTRUCTION OF
INSPECTION AND SAMPLING,
where a Retail Outlet refuses, prevents
Or obstructs the inspection of its
premises, facilities and records, as well
as sampling of Liquid Fuels. In
addition, failure by the Inspectors from
the OIMB or the Field Offices to
‘conduct inspection despite reasonable
efforts to secure the consent of the
Retail Outlet Official to do so, or the
circumstances described in Section 16,
shall be deemed as Refusal of
Inspection. Such refusal shall likewise
constitute prima facie evidence of the
commission of the Prohibited Acts of
this Circular.

1*t Offense

P10,000.00 with
directive to
comply.

P200,000.00 with
Cease and Desist

Order.

P10,000.00 per

dispensing pump.

P50,000.00
With the
presumption that
there is sale of
adulterated
products,

Penalty
2"™ Offense

P10,000.00
Revocation of
COC and
Recommend
revocation or
suspension of
the permit or
license to LGU.

P300,000.00,
Revocation of
COC, issuance
of Closure
Order and
Recommend
revocation or
suspension of
the permit or
license to LGU,

P10,000.00 per
dispensing
pump,
Revocation of
COC and
Recommend
revocation or
suspension of
the permit or
license to LGU,

P100,000.00

with Cease and

Desist Order,
and with the
presumption
that there is
sale of
adulterated
products.

3" Offense

P200,000.00
issuance of
Closure
Order,
Revocation of
COC and
Recommend
revocation of
the permit or
license to
LGU.

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Penalty
Prohibited Act

1* Offense 2” Offense 3™ Offense

E. HOARDING which is committed when, P10,000.00
before a price increase or in times of
tight supply:

P10,000.00,
Revocation of
COC and
Recommend
revocation or
Suspension of
the permit or
license to LGU.

1. Retail Outlet refuses, or fails to sell
the Liquid Fuels to the general
public even when supply is
available, and customer offers to
pay in cash; or

2. Retail Outlet has unjustifiable
increase in inventory, which stocks
are fifty percent (50%) higher than
his usual inventory as reckoned
from the third (3%) month
immediately preceding the date that
the said Retail Outlet refuses or fails
to sell.

F. Continuing to operate after an P10,000.00 per P10,000.00 per

Order or Notice of cessation of | day of operation. day of
operation of business has been operation,
issued by the DOE Revocation of
COC and
Recommend

revocation or:
suspension of
the permit or
license to LGU.

Section 30. Initiation of Administrative Proceedings. Any individual or group may initiate
administrative Proceedings with the DOE against the Retail Outlet Official and/or Retail Outlet
committing any of the Prohibited acts defined or provided in this Department Circular in
accordance with DOE Circulars; Provided: That, the DOE may, motu proprio, proceed

administratively against any Retail Outlet who does not comply with this Department Circular
pursuant to said DOE Circulars.

Section 31. Initiation of Criminal Action. The initiation of an administrative action or the
imposition of any fine against any Retail Outlet who Violates or does not comply with this
Department Circular shall be without prejudice to the filing of any criminal action against such

Retail Outlet pursuant to BP 33, as amended and RA 8479, and other applicable laws, rules and
regulations.

RULE Ix
FINAL PROVISIONS

Section 32. Transitory Clause. All existing Retail Outlets that have fully-complied with the
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prior notice requirements of the DOE

pursuant to Department Circular 98-03-004 shall be given

six (6) months from effectivity of these Retail Rules to fully comply with the provisions hereof.

Taking into consideration public safety,

the DOE reserves the right to issue appropriate and

separate regulations relative to the conduct of EV charging stations, battery Swapping and other

similar activities. Any Retail Outlet may

DOE.

Section 33. Review Clause.

only engage in such activities after notification to the

In light of the dynamic nature of the industry, the DOE shall

periodically review, update and issue the necessary rules relative to the operation of the sector.

OIMB shall coordinate with the

activities.

Energy Utilization Management Bureau (EUMB) for EV related

Section 34, Separability Clause. Should any provision herein be declared invalid or

unconstitutional by a court

of competent jurisdiction, the same shall not affect the validity of

the other provisions not so declared.

Section 35.

Repealing Clause.
All other DOE Circulars, issuances,
any part hereof, are hereby deemed

DOE Circular No. 2003-11-010 is hereby deemed repealed.
and rules and regulations inconsistent with this Circular or
repealed or modified accordingly.

Section 36. Effectivity. This Department Circular shall take effect fifteen (15) days from the

date of its complete publication in two (2) newspapers

Done this

Department Circular No. DC2017-_ Il -
Fuels

of general circulation.

, Energy Center, Bonifacio Global City, Taguig City.

ons Wier

Secretary

Repubtic of the Phitippines
DEPARTMENT OF ENERGY
C-17005427

wR QU

Qanvshlin nt tee Phitinninne

NOV 22 2077

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A- Oo! Promulgating a Revised Rules and Regulations Governing the Business of Retailing Liquid