Retailers assure no rise in LPG prices

By ELLSON A. QUISMORIO and ROLLY CARANDANG
September 21, 2009, 6:21pm

Liquefied Petroleum Gas Marketers Association (LPGMA) President Arnel Ty said on Monday their cooking gas prices would stay the same for the rest of September.

“Our current suggested retail price (SRP) is currently P520 (for every 11-kilogram tank) and that will remain for the rest of the month,” said Ty, who heads the group of independent LPG retailers.

Ty made the assurance amid consumer worries that LPG prices might shoot up anytime, what with Christmas just under 100 days away.

“Tumataas po talaga locally ang presyo pag malapit na ang Christmas. But what we do is base our adjustmentson international prices para di magsamantala ang big oil companies.”

Meanwhile, Agusan del Sur Rep. Rodolfo ‘Ompong” Plaza in a radio interview over the weekend reiterated the need for stricter guidelines in the selling and distribution of cooking gas tanks.

Plaza is the main proponent of the so-called “LPG Act” (House Bill 5942), which is now being deliberated in the Senate. The bill gained steam following recent reports that there are between three to six million defective LPG tanks being circulated in Metro Manila.

“Ang katumbas ng 11-kilo na tank ay sampung granada,” said the solon in describing sub-standard LPG tanks as serious fire hazards. “There retailers should be more responsible.”

Plaza said that such law would also protect consumers from unscrupulous retailers who cheat consumers by underfilling their tanks.

The LPGMA is opposing the passage of the bill since they felt that it would give “too much” regulating powers to the Department of Energy, which they have been at loggerheads with as far as policies are concerned.

At the same time, the LPGMA said major oil companies have no perpetual ownership over LPG cylinders they have already sold to the public.

While they expressed support to scrap unsafe cylinders, the LPGMA said it must be fair and equitable.

Ty said the proposed LPG bill adopts the position of major oil companies that ownership of the LPG cylinders “shall be based on the permanent marking thereon.”

The bill, sponsored by Sen. Mar Roxas, said only the company whose brand or trademark permanently appears in the LPG cylinder should be authorized to refill it, Ty said, adding that this would have the effect of depriving the consumer of a legitimate choice in purchasing.

“Stating that the original owner of the brand perpetually owns the LPG cylinder is contrary to Civil Code provisions on ownership,” he said.

The LPGMA said the proof of purchase of the LPG cylinder to be presented by the consumer “is too unrealistic. Aside from the fact that in practice, it is unlikely that the sale or exchange of the LPG cylinder itself is documented under a written instrument, the keeping of receipts or any proof of ownership is surreal.”

Ty suggested instead a mandated cylinder exchange program among the LPG industry participants such as importers, refillers, marketers and dealers, incorporated in the proposed LPG bill in order to ensure orderly practice in the LPG industry.

He said there must be a replacement or subsidy to the consumers and small dealers of “unsafe” LPG cylinders to be confiscated and impounded from them.

He said such replacement could be funded from the LPG revenue generated through value-added tax.

Citing records from the Bureau of Fire Protection, Ty said the common causes of LPG-related fire incidents are defective hoses, incorrect installation of pressure regulator, and cylinder valves left open.

Ty reiterated that the proposed LPG bill will force 120 independent marketers and refillers and 24,000 independent dealers and outlets to close shop because of the confiscation of 6 million alleged dilapidated cylinders in the market as well as the stringent regulation to be imposed and discretion given to the Department of Energy.