The bill seeking to regulate the importation and manufacturing of liquefied petroleum gas (LPG) cylinders and similar products and services, once passed by Congress, will give manufacturers, importers and marketers a one-year grace period within which to comply with the new law, congressional leaders said Sunday.

The bill, now being under consideration by the Senate, was the offshoot of similar complaints from consumers about defective and substandard LPG cylinders and parts, among other products and services.

Senator Mar Roxas, chairman of the Senate trade and commerce committee, said 939 fires occurred from 2001 to 2004 based on statistics provided by the LPG Industry Association.

The Bureau of Fire Protection (BFP) said 756 fires caused by LPG tank explosions occurred from 2004 to 2008. Half of the 12 million LPG tanks in the Philippines are not fit for public use. It is also estimated that of these six million LPG tanks, three million are for scrapping because they could not be fixed anymore. Another three million are for requalification or for inspection and certification by concerned government agencies.

Anticipating suits from the LPG industry, the bill proposes that government regulators will be provided with free legal assistance, liability insurance and other forms of protection and indemnification.

All LPG and auto-LPG industry participants shall be required to seek a valid license to operate from the DoE. These participants include LPG cylinder seal manufacturers and suppliers.

Participants already engaged in business are required to obtain a license to operate within six months from the effectivity of the new law or prior to the renewal of their business license.

Their licenses are required to prominently posted or displayed in public and conspicuous area within the business premises.

Persons engaged in the business of manufacturing, repairing or scrapping LPG cylinders or containers shall obtain a license to operate from the Department of Trade and Industry (DTI).

The DoE and the DTI shall also have the power and authority to require industry participants to submit written, electronic or other forms of reports or disclosures to these government agencies.

Non-compliance shall be ground for the cancellation of issued by local government units (LGUs).