Shell Gas loses P500-M/yr due to illegal LPG refillers

Shell Gas, the LPG arm of the Shell Group of Companies, is losing about P500 million yearly from illegal refilling of its LPG tanks, it was learned yesterday.

Jose Antonio Gonzalez, domestic sales manager of Shell Gas, said in yesterday’s launch of "Project Manigurado," a campaign against illegal LPG refilling, that the company has been losing about 1.8 million cylinders of Shellane (Shell’s LPG brand name) tanks to this activity.

"This activity is becoming rampant and we are losing about 15 percent of our total volume for Shellane," Gonzalez said, adding that other legitimate LPG players are also affected by illegal refilling of LPG tanks.

Illegal LPG refilling involves the refilling of brand name tanks by unauthorized outlets that sell these to unsuspecting customers as a legitimate product.

Aside from cheating the public of their money because of underfilled tanks, such practices pose safety hazards because these operators do not have the facilities for quality testing after refilling. Often, the gas tanks are not sealed properly, resulting in leaks and possible explosions.

Shell and other LPG players are also complaining about the uncontrolled activity and the lack of enforcement of existing laws meant to punish violators.

Efforts to counter this illegal practice include the proposed LPG bill pending in Congress which is being endorsed by the Department of Trade and Industry and the Department of Energy.

A number of court cases against illegal refillers were filed by the LPG Task Force but there is no record of such cases resolved in favor of the legitimate LPG players.

Gonzalez said Shell Gas launched "Project Manigurado" to increase public awareness of the issue. The company created a toll-free customer care hotline and to accommodate inquiries and complaints.