Reyes ignorant of law vs LPG hoarding — Golez

02/12/2009

Energy Secretary Angelo Reyes, representatives of small liquefied petroleum gas (LPG) suppliers and the big players yesterday issued conflicting situationers on the supply of liquefied petroleum gas in the country.

Reyes announced that the supply of LPG has started to normalize, a claim echoed by the big players who said there was enough supply for the consumers.

But Bernie Bolisay, president of the LPG Refillers Association, said it was not enough to import 22,000 metric tons a month because at least 100,000 metric tons were needed to ensure that there will be no shortage.

Also yesterday, Senior Deputy Minority Leader and Para?aque Rep. Roilo Golez accused Reyes of ignorance of an existing law providing penalties for those hoarding liquefied petroleum gas (LPG).

At the resumption of the hearing of the House committee on energy on the purported shortage in LPG and its spiraling price, Golez expressed surprise why Reyes had to ask additional powers for regulating the LPG industry when there is an existing law covering it.

“It is obvious from the answers of Reyes that he appeared clueless about the implementation of DoE Circular 2000-06-010 entitled ‘Revised Schedule of Penalties in the LPG Industry of 2000’ that provides penalties for hoarding,” he said.

Golez said the said circular is very specific on penalizing LPG hoarders, particularly Section 12 of the circular that provides a penalty of P10,000 for every cylinder for first offenders.

For second offenders, business closure is recommended.

The solon said Reyes also appears clueless about the target personalities in the anti-hoarding drive, saying the energy secretary had to consult his staff and took a long time to answer.

Golez made the statement after Reyes pushed for a regulation of the LPG industry even as he assured the public that LPG supply in the country has normalized.

Describing the LPG industry as lawless, Reyes said regulation would protect consumers from “unscrupulous” players and risks posed by substandard LPG products.

“There is this unscrupulous, illegal, profit-motivated, unfair practice of these illegal refillers that is destroying the industry,” Reyes said. “If we want more government action, let us regulate this industry.”

Reyes is also asking for DoE authority to license LPG participants.

Reyes said illegal refillers get away with their businesses because they can just pay a P10,000 fine if they do not let DOE personnel inspect their premises, said Reyes.

George San Mateo, secretary general of the militant transport group Pinagkaisang Samahan ng Tsuper at Opereytor Nationwide (Piston) said his group was backing the regulation of the LPG industry.

“I will agree with Secretary Reyes to regulate the industry so this shortage will not happen again,” said San Mateo, although clarifying that they are not agreeable that the DOE should not be granted additional powers. “We in Piston are against the additional powers required,” he said.

During yesterday’s hearing by the House Energy panel, Reyes claimed that he had talked with officials of Petron, Shell and other players who assured him that there will be enough supply of LPG.

“The LPG industry situation has largely normalized. Liquigaz was able to service all who go (to their terminal) for servicing. Some 5,000 metric tons are arriving Wednesday morning and in the afternoon, 17,000 metric tons. That is 22,000 metric tons they are unloading and unloading,” Reyes said.

Pilipinas Shell representative Bernard Ong and Total Philippines manager for corporate affairs Malou Espina also told the panel that they have enough LPG supply for their customers.

Bolisay, however, disagreed, saying the country needs at least 100,000 metric tons monthly to ensure that there will be no shortage of LPG.

“Our monthly requirement based on the 2008 LPG requirement is something like 66,927 metric tons. That was based on 2008 figures, if we will add on the 50-percent surge based on the January and February sales, we need something like 100,000,” said Bolisay.

Bolisay partly agreed with the claim of Reyes, saying that the supply in Metro Manila has normalized. He said supply was still scarce in Laguna, Cavite, Batangas, Bulacan, Pampanga, Tarlac, Pangasinan, San Fernando City, Baguio City and the Ilocos Region.

“We are only hearing Liquigaz with 17,000 metric tons coming in either today or tomorrow. What about the others? Let’s talk about exact figures instead of looking at graphs and written explanations considering not all of us present here are familiar with the use of graphs,” he added.

Meanwhile, Press Secretary Cerge Remonde in a radio interview announced that a large shipment of LPG was scheduled to arrive yesterday and more in the next few days. Gerry Baldo

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