Filipinos in more than 8 million households who use liquefied petroleum gas or LPG stand to benefit from Senate Bill 1955 of LPG Act providing for the National Energy Policy and Regulatory Framework for the PLPGI. The Energy Department reports that LPG accounts from 12 percent of the country’s demand for petroleum products in 2019.
Voting 21-0, senators passed Senate Bill No. 1955 or the proposed LPG Act. The bill seeks to create an LPG Cylinder Improvement Program aimed at removing unsafe cylinders from circulation and be replaced with new and non-defective ones. This is part of current efforts to significantly cut LPG-related explosions and fires. Data from the Bureau of Fire Protection show that 1,161 reported fire incidents between 2010 and August 2020 are attributed to LPG explosions.
According to Senator Sherwin Gatchalian, Energy Committee chairman and bill author, the legislation seeks “to regulate and promote an important energy source in the country”. He specified that LPG here refers to commercial propane gas, butane gas, or a mixture of the two.
The measure provides for a Cylinder Exchange and Swapping Program that will institutionalize consumers’ right to shift to another LPG brand simply by bringing any empty LPG cylinder to a retail outlet.
LPG is widely used locally for a variety of purposes which include heating, lighting and cooking for households among others. During the pandemic, the use of LPG catapulted as a result of travel restrictions and quarantine which necessitated more Filipinos to turn to home cooking and dining in. Gatchalian cited Philippine Statistics Authority data showing that 4 in 10 households use LPG on a daily basis.
Arnel Ty, president of LPGMA party list, one of the primary authors of the bill, welcomed the development in the bill’s passage saying that every consumer has the right to safe and non-defective LPG cylinders. He is confident that this law will be crucial in eliminating about 6 million unsafe or dilapidated LPG cylinders that are proliferating in the market as indicated by recent data from the Department of Energy.
Even if the LPG industry is deregulated, Ty acknowledges the bill invites more players to invest in better facilities. Existing players such as South Pacific Inc. and Regasco will be encouraged to pursue expansion plans due to the bill’s provisions that protect investments. “The government needs to regulate the LPG industry in terms of consumer safety, and guard against abuses by unscrupulous traders who not only endanger households, but also shortchange consumers of their hard-earned money”, Ty emphasizes.
Since LPG is such a staple in the lives of many Filipinos, Ty says that it is important to have a comprehensive and relevant framework to govern the industry. He also notes that consumer safety should be top of mind since LPG is highly flammable and explosive. Defective or low quality cylinders pose a major fire hazard as shown in reports of the Bureau of Fire Protection.
Senator Gatchalian also said the bill also helps the Filipino consumer’s budget especially in hard times like the current pandemic. He points out that an LPG cylinder of P353 lasts little over a month. Using electricity for the same purpose costs P441. LPG presents a cheaper option by at least 25 percent.