DOE summons 10 erring LPG traders

Energy Secretary Jose Isidro "Lito" Camacho will summon this week at least 10 liquefied petroleum gas (LPG) traders found to have violated certain rules set by the Department of Energy (DOE).

Camacho told reporters over the weekend that he will meet with these 10 erring traders to discuss the payment of fines slapped on them

The energy chief, who declined to identify the 10 erring traders, said he had signed a memorandum of agreement with the Department of Interior and Local Government (DILG) to assist the DOE in policing illegal practices in LPG trading.

The most common illegal practice is the so-called underfilling which is the selling of LPG cylinders with less than the required volume of gas. Investigations by the DOE probe have shown that underfilling is being practiced by unscrupulous dealers and resellers regardless of product brand.

The government and the LPG industry players have formed a task force which issued a set of guidelines prescribing and penalties for malpractices in the sale of LPG products.

Recently, the task force met with Camacho to discuss possible ways to fast track the payment of fines. Present during the meeting were top executives of the three oil majors, the LPG Refillers Association and the Petroleum Dealers Association of the Philippines.

The LPG market has been growing at a rate of 10 percent yearly since the industry was deregulated in 1998.

New players which grabbed a 25-percent share of the market in 2,000, are hoping to increase this share to 35 percent.

The bulk of LPG sales however remain in the hands of the industry majors. Petron Corp. Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc. Other players in the LPG sector are Total Gaz, Pryce Gas, Liquigaz, Manila Gas, Petronas and Mobile Gas.