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PRESIDENTIAL DECREE NO. 1865
PRESIDENTIAL DECREE NO. 1865 -
AMENDING BATAS PAMBANSA BLG. 33, ENTITLED "AN ACT DEFINING AND
PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO THE PUBLIC INTERESTS AND
NATIONAL SECURITY INVOLVING PETROLEUM AND/OR PETROLEUM PRODUCTS,
PRESCRIBING PENALTIES THEREFOR AND FOR OTHER PURPOSES", BY INCLUDING
SHORT-SELLING AND ADULTERATION OF PETROLEUM AND PETROLEUM PRODUCTS AND
OTHER ACTS IN THE DEFINITION OF PROHIBITED ACTS, INCREASING THE
PENALTIES THEREIN, AND FOR OTHER PURPOSES"
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chanroblesvirtualawlibrary
WHEREAS,
Batas Pambansa Blg. 33 defines and penalizes certain prohibited acts
inimical to the public interest and national security involving
petroleum and/or petroleum products; chanroblesvirtualawlibrary
WHEREAS, adulteration of finished petroleum products or possession of
adulterated finished petroleum products for the purpose of sale,
distribution, transportation, exchange or barter; and underdelivery or
underfilling beyond authorized limits in the sale of petroleum products
or liquefied petroleum gas cylinders are pernicious practices that are
rampant and widespread;chanroblesvirtualawlibrary
WHEREAS, there is an urgent need to curb, if not totally eliminate,
such nefarious practices in the industry in order to better protect the
consuming public;chanroblesvirtualawlibrary
WHEREAS, it is necessary to provide the implementing government
agencies with increased administrative and criminal penalties with
which it can effectively curtail petroleum product adulteration and
shortselling as well as other prohibited acts and activities involving
petroleum and/or petroleum products which are inimical to public
interest and national security;chanroblesvirtualawlibrary
WHEREAS, in view of the foregoing considerations, it has become
necessary to amend certain provisions of Batas Pambansa Blg. 33, as
well as to provide, new provisions in the law.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree as follows:cralaw:red
Section 1. Section two of Batas Pambansa Blg. 33, as
amended is further amended to read as follows:cralaw:red
"Sec. 2. Prohibited Acts. — The following acts are
prohibited and penalized:cralaw:red
"(a) Illegal trading in petroleum and/or petroleum
products;chanroblesvirtualawlibrary
"(b) Adulteration of furnished petroleum products, or
possession of adulterated finished petroleum products for the purpose
of sale, distribution, transportation, exchange or barter;chanroblesvirtualawlibrary
"(c) Underdelivery or underfilling beyond authorized
limits in the sale of petroleum products or possession of underfilled
liquefied petroleum gas cylinder for the purpose of sale, distribution,
transportation, exchange or barter;chanroblesvirtualawlibrary
"The Oil Company, petroleum refiller, marketer, dealer and retailer, as
the case may be, and the hauler shall be responsible for the quantity
and quality of the petroleum product delivered when the same is sold on
delivered basis.
"For the purpose of this subparagraph, the existence of the facts
hereunder shall give rise to the following presumptions:cralaw:red
"1) That cylinders containing less than the required
quantity of liquefied petroleum gas which are not property identified,
tagged and set apart and removed or taken out from the display area and
made accessible to the public by marketers, dealers, sub-dealers or
retail outlets are presumed to be for sale;chanroblesvirtualawlibrary
"2) In the case of a dispensing pump in a petroleum
products retail outlet selling such products to the public, the absence
of an out-of-order sign, or padlocks, attached or affixed to the pump
to prevent delivery of petroleum products therefrom shall constitute a
presumption of the actual use of the pump in the sale or delivery of
such petroleum products; and chanroblesvirtualawlibrary
"3) When the seal, whether official or of the Oil
Company, affixed to the dispensing pump, tank truck or liquefied
petroleum gas cylinder, is broken or is absent or removed, it shall
give rise to the presumption that the dispensing pump is
underdelivering, or that the liquefied petroleum gas cylinder is
underfilled, or that the tank truck contains adulterated finished
petroleum products or is underfilled;chanroblesvirtualawlibrary
"The use of such pumps, cylinders or containers referred to in
sub-paragraph (1), (2) and (3) of this paragraph, to deliver products
for sale or distribution shall constitute prima facie evidence of
intent of the hauler, marketer, refiller, dealer, retailer outlet
operator to defraud;chanroblesvirtualawlibrary
"[(b)] (D) Hoarding of petroleum and/or petroleum
products;chanroblesvirtualawlibrary
"[(c)] (E) Overpricing in the sale of petroleum
products;chanroblesvirtualawlibrary
"[(d)] (F) Misuse of petroleum allocations;chanroblesvirtualawlibrary
"[(e)] (G) Speed contest and rallies involving mainly
the use of motor vehicles, motor-driven watercraft orrcraft utilizing
petroleum-derived fuels, including car and motorcycle rallies and drag
racing, without the permit from the Bureau of Energy Utilization; and
"[(f)] (H) Sky-diving, and water skiing except when
methanol is used in the power-boat operation."
Section 2. Section three of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 3. Definition of terms. — For the purpose of
this Act, the following terms shall be construed to mean:cralaw:red
"Illegal trading in petroleum and/or petroleum products" —chanroblesvirtualawlibrary
"(a) The sale or distribution of petroleum products
[for profit] without license or authority from the [Government] Bureau
of Energy Utilization;chanroblesvirtualawlibrary
"(b) Non-issuance of receipts by licensed [traders]
oil companies, marketers, distributors, dealers, subdealers and other
retail outlets, to final consumers; provided: That such receipts, in
the case of gas cylinders, shall indicate therein the brand name, tare
weight, gross weight, and price thereof; chanroblesvirtualawlibrary
"(c) Refilling of liquefied petroleum gas cylinders
without authority from said Bureau, or refilling of another company's
or firm's cylinders without such company's or firm's written
authorization;chanroblesvirtualawlibrary
"(d) Marking or using in such cylinders a tare weight
other than the actual or true tare weight thereof;chanroblesvirtualawlibrary
"(e) Violation of rules and regulations of said
Bureau regarding the implementation of this act;chanroblesvirtualawlibrary
"(f) Removal or unloading of petroleum products from
any lorry, tank truck or delivery vehicle by any person other than the
contracted purchaser, or in premises of the purchaser's retail outlet
or business establishment;chanroblesvirtualawlibrary
"(g) Use of pump metering unit which has not been
properly calibrated and sealed by the Office of the City or Municipal
Treasurer where station or outlet is located, or by the National
Science and Technology Authority (NSTA), or by any other government
agency authorized therefor, or in the absence thereof by the Oil
Company; and
"(h) Use of a tank truck, lorry, hauling vehicle, or
other conveyor other than vessels or barges for the delivery of
petroleum products which has not been registered with the Bureau of
Energy Utilization and tanks, containers or compartment thereof are not
property calibrated and sealed by the National Science and Technology
Authority or any other government agency authorized therefore
[misrepresentation as to the quality and/or quantity; and sale by oil
companies, distributors and/or dealers violative of government rules
and regulations].
"Petroleum Fuel Product Adulteration" — The mixing of any petroleum
product with another finished or unfinished petroleum product or stock
or with any non-petroleum substance or material that will result in
product quality change, or resulting in the failure of such finished
petroleum product to meet the required product specifications as
prescribed by the products standards agency of the Ministry of Trade
and Industry, for the purpose of this definition, finished petroleum
product refers to any of the following: premium gasoline, regular
gasoline, aviation gasoline, aviation turbo fuel, kerosene, diesel
fuel, industrial fuel or package lube oils. This definition shall not
apply to alcogas and oil emulsions.
"Underfilling or Underdelivery" — Refers to a sale, transfer, delivery
or filling of petroleum products of a quantity that is actually beyond
authorized limits than the quantity indicated or registered on the
metering device of container. This refers, among others, to the
quantity of petroleum retail outlets or to liquefied petroleum gas in
cylinder or to lube oils in packages.
"Hoarding" — The undue accumulation of a trader of petroleum and/or
products beyond his or its normal inventory levels, and/or unjustified
refusal to dispose of, sell or distribute the same to consumers; or the
unreasonable accumulation by a person other than a trader of petroleum
and/or petroleum products.
"Overpricing" — The sale of petroleum and/or petroleum products at
prices in excess of those duly authorized by the [Government] Board of
Energy. chanroblesvirtualawlibrary
"Misuse of allocation" — The sale, transfer or diversion of mandated
petroleum fuel allocation by oil companies, distributors, dealers or
consumers contrary to the declared intent of the Government in making
such allocation."
Section 3. The same Act is further amended by
inserting between Sections three and four thereof, a new Section which
shall read as follows:cralaw:red
"Sec. 3-A. Rules and Regulations; Administrative
sanctions for violation thereof— The Bureau of Energy Utilization
shall issue such rules and regulations as are necessary to carry into
effect the provisions of this Act, subject to the approval of the
Minister of Energy, after consultation with the affected industry
sectors. Said rules and regulations shall take effect fifteen (15) days
from the date of its publication in two (2) newspapers of general
circulation.
"The Bureau of Energy Utilization is empowered to impose in an
administrative proceeding, after due notice and hearing, upon any
person who violates any provision of such rules and regulations, a fine
of not more than ten thousand pesos (P10,000.00) or to suspend or
remove the license or permit of a hauler, marketer, refiller, dealer,
sub-dealer, or retail outlet: Provided, That hearing in any
administrative proceedings may be waived by respondent. Provided,
Further, That during the pendency of such administrative proceedings,
the Bureau may suspend the business operations of such hauler,
marketer, refiller, dealer, sub-dealer or retailer or retail outlet
operator when the suspension is consistent with the public interest.
Administrative proceedings shall be decided within thirty (30) days
after filing of the last responsive pleading by the respondent, or
termination and completion of the administrative proceedings. chanroblesvirtualawlibrary
"All law enforcement and other concerned agencies of the government
shall assist the Bureau of Energy Utilization in the implementation of
this section.
"The Administrative sanction that may be imposed shall be without
prejudice to the filing of a criminal action as the case may warrant."
Section 4. Section four of the same Act is amended to
read as follows:cralaw:red
"Sec. 4. Penalties. — Any person who commits any act
herein prohibited shall, upon conviction, be punished with a fine of
not less than [two] TWENTY thousand pesos [(2,000)] (P20,000) but not
more than [Ten] FIFTY thousand pesos [(P10,000)], (P50,000), or
imprisonment of at least two (2) [months] YEARS but not more than [one
(1)] FIVE (5) years, or both, in the discretion of the court. IN CASES
OF SECOND AND SUBSEQUENT CONVICTION UNDER THIS ACT, THE PENALTY SHALL
BE BOTH FINE AND IMPRISONMENT AS PROVIDED HEREIN. Furthermore, the
petroleum and/or petroleum products, subject matter of the illegal
trading, ADULTERATION, SHORTSELLING, hoarding, overpricing [and] OR
misuse, shall be forfeited in favor of the Government: Provided, That
if the petroleum and/or petroleum products have already been delivered
and paid for, THE OFFENDED PARTY [the payment made] shall be
INDEMNIFIED TWICE THE AMOUNT PAID [the subject of forfeiture], and if
the seller who has not yet delivered has been fully paid, the price
received shall be returned to the buyer WITH AN ADDITIONAL AMOUNT
EQUIVALENT TO SUCH PRICE; and in the addition, if the offender is [a
trader] AN OIL COMPANY, MARKETER, DISTRIBUTOR, REFILLER, DEALER,
SUB-DEALER AND OTHER RETAIL OUTLETS, OR HAULER, the cancellation of his
license. chanroblesvirtualawlibrary
"Trials of case arising this Act shall be terminated within thirty (30)
days after arraignment.
"When the offender is a corporation, partnership, or other juridical
person, the president, the general manager, managing partner, or such
other officer charged with the management of the business affairs
thereof, OR EMPLOYEE RESPONSIBLE FOR THE VIOLATION shall be criminally
liable, IN CASE OFFENDER IS AN ALIEN, HE SHALL BE SUBJECT TO
DEPORTATION AFTER SERVING THE SENTENCE.
"If the offender is a government official or employee, he shall be
perpetually disqualified from office."
Section 5. All laws, decrees, orders, instructions,
rules and regulations which are inconsistent with, or contrary to, the
provisions of this Act are hereby repealed or modified accordingly.
Section 6. This decree shall take effect upon its
approval.
Done in the City of Manila,
this 25th day of May, in the year of Our Lord, nineteen hundred and
eighty-three.
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