DOE crafting new rules on LPG handling

MANILA, Philippines - The Department of Energy (DOE) is crafting new rules to ensure safety standards on the handling and distribution of liquefied petroleum gas (LPG).

Additional regulations will give more power to the department pending the passage of the LPG bill, a DOE official said.

“We plan to increase government action and enforcement on compliance [for rules] on LPG cylinders,” Energy Undersecretary Jose Layug Jr. said yesterday.

The DOE plans to issue at least two circulars: the requirement of a standards compliance certificate and guidelines on transporting LPG cylinders.

Layug said the two circulars, which form part of the LPG bill, will be finalized next week following a consultation with stakeholders.

“The LPG bill has been pending in Congress and because of the proximity of the elections, very likely it may not be passed into law,” Layug said.

 House Bill 5052 or the LPG Industry Regulation and Safety Act of 2011 has yet to be scheduled for reading. Reforms will ensure the safety of customers, increase the powers of government agencies and promote a healthy and competitive environment.

The DOE, for its part, will require all those who want to engage in the business of the LPG marketing, distribution and supply to secure a standards compliance certificate (SCC).

“We have decided to take a more proactive stand especially with mandating compliance for standards for LPG cylinders,” Layug said.

“The SCC primarily will be on the product itself and also on the minimum requirements on how or who can engage in the business,” Layug said.

Such standards will be based on a survey of best practices globally and by major LPG firms in the country.

Last week, the DOE conducted a surprise monitoring on LPG-related businesses. The DOE caught two firms selling LPGs with incorrect weights and without appropriate or authorized seals.

To date, the DOE imposes P1,000 to P10,000 in fines and files cases against erring firms. The Trade department, for its part, confiscates damaged and dilapidated LPGs.

“The other circular we are looking at are the standards in transporting LPG cylinders,” Layug said.

This will outline rules for the transport of LPG cylinders specifically for two-wheeled vehicles.

Layug said the DOE is already coordinating with industry players and the Bureau of Product Standards of the trade department.

Other measures are being lined up by the DOE to ensure safety of consumers.

“The other thing we are discussing with the LPG industry is the refilling of LPG cylinders via auto LPG stations. That is not allowed,” Layug said.

Layug said the DOE observed such activities, which pose fire risks, in provinces.

Layug added that stakeholders are also asking for a government group that will be tasked to solely enforce LPG rules.

 In the past 10 years, there were already 1,782 fires caused by LPGs, data from the Bureau of Fire Protection showed. Of these, 45 occurred in the first half of last year, 126 for the entire 2010 and 276 from the entire 2009.

To date, only 50 percent of the eight to 12 million LPG cylinders are in good condition, with the rest either dilapidated or have to be meticulously tested for defects, data from the LPG Industry Association showed.