Estrada urges tighter watch on below-par LPG tanks

President Estrada asked LPG companies yesterday to close ranks with the Department of Energy in protecting consumers from underfilled LPG cylinders and illegal refillers who violate safety standards by using sub-standard LPG cylinders.

In a speech read for him by Energy Secretary Mario V. Tiaoqui at the inauguration of the new LPG import terminal of Liquigaz Philippines Inc., the President said "there is a need to protect our consumers, as well as legitimate members of the LPG industry, from various unscrupulous acts and poor safety practices."

He challenged the industry to help sustain the strong growth momentum in LPG demand by ensuring that consumers get value for money. LPG consumption is projected to grow at an annual rate of 9.8 percent between 2000 and 2009, the highest among all petroleum products. This is easily more than double the average growth rate of 4.6 percent projected for all petroleum products in the next 10 years.

"Through deregulation and liberalization, we have levelled the playing field for you. Now it is up to you to develop and maintain consumer confidence and loyalty to your brand; you have to constantly woo consumers with ever improving service, products and even more competitive prices."

In 1999, the Department of Energy penalized close to 500 LPG refillers and outlets for various violations including underfilling. In the most extreme case, some cylinders were found to be underfilled by as much as 25 percent.

Laquigaz Phils. president Jim Kirby expressed full support for the DOE's campaign against illegal practices in the LPG trade. "In accordance with the memorandum of agreement which the LPG industry signed with the DOE last December, we make sure that our own cylinders carry the right volume and that we do not conduct business with illegal refillers."

Liquigaz invested over P1.1 billion to set up its new import terminal in Mariveles, Bataan. Liquigaz is a wholly-owned subsidiary of SHV, considered the biggest LPG marketer in the world. SHV also owns the Makro chain of cash and carry stores; in the Philippines, Makro has four outlets set up in joint venture with several local companies.