Women’s group urges Senate to junk LPG bill

10/13/2009

A national alliance of women yesterday asked senators to reject the Liquefied Petroleum Gas (LPG) bill and instead repeal the Oil Deregulation Law to address industry monopoly.

The House of Representatives passed, after the third hearing, House Bill 5942, or the LPG Act of 2009, authored by Agusan del Sur Rep. Rodolfo “Ompong” Plaza.

The said bill was consolidated with other related bills in the Senate. After a joint hearing of the committees on trade and on energy, the consolidated bill, entitled Senate Bill 3418, or the LPG Industry Regulation and Safety Act of 2009, is currently on second reading in the Senate.

The women’s rights group Gabriela, in a position paper submitted to the senators’ offices, said a number of concerned groups have aired their positions on the bill, but the stand of the end consumers, who, it said, are the real stakeholders on this issue, have yet to be heard.

“Because households comprise majority of LPG end users, it is incumbent upon Gabriela National Alliance of Women in the Philippines to put forward our analysis and position on Senate Bill 3418,” the group stated in its position paper.

“The issue of consumer safety and protection regarding the use of LPG cylinders must indeed be addressed. While proponents of SB 3418, or its predecessor, HB 5942, claim to address safety, we cannot help but be alarmed that the real and utmost concern of consumers, which is the price of LPG, was totally overlooked by both chambers of Congress,” it added.

Sen. Manuel “Mar” Roxas II, who sponsored the bill on the floor, said the bill seeks to give the Department of Energy (DoE) full authority to regulate the LPG industry.

He also assured that the bill will not encourage a monopoly of the industry and that the small oil players have no reason to be apprehensive of the measure, which actually eyes to ensure that they continue to enjoy their share of the LPG business.

“Why are they saying it would result to monopoly?...All we are saying is we want safe acts. Anybody in the business now can continue to be in the business so long as their tanks are safe...If their tanks are safe, if their tanks are up to specifications, why would they be driven out of business?” Roxas stressed.

But Gabriela warned that the idea to vest on the DoE the power to enforce the law on the standard of safety of LPG cylinders would result in the demise of many, if not all of the small and independent players in the industry.

“As it is, only four companies – Petron, Liquigaz, Shell and Total – control 92 percent of the LPG market in the country. The very few independent players in the LPG industry concentrate mostly on the refilling and marketing aspects. In the end, this (bill) will result to further consolidation of the whole LPG industry under the monopoly of the existing oil cartel, thus allowing it to further dictate the price of LPG in the country,” the women’s group averred.

It moreover said if defective cylinders are seized without free replacement or refund, households would be unduly forced to buy new ones.

“More worrisome are the provisions in SB 3418, as in HB 5942, concerning brand ownership and the prohibition of refilling and marketing of LPG cylinders by any entity other than brand owners. This essentially gives the major oil companies control over the refilling and marketing of LPG,” the group further said.

To address the issue of LPG safety, Gabriela called on legislators to instead pass HB 1126, authored by Gabriela party-list Rep. Liza Maza, which seeks to include kerosene and LPG among the basic commodities that should be subjected to price and quality control under the Price Act.

“To address the continuing woes of consumers on the ever-increasing price of LPG, we ask our legislators to repeal the Oil Deregulation Law,” the group, which advocates women’s welfare and concerns, said.

Angie M. Rosales

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