Stricter standards for LPG tanks sought

MANILA, Philippines - Cooking gas retailers are seeking stricter standards for cylinder tanks to address supply issues that have recently hounded the market. In a press conference, Energy Secretary Angelo T. Reyes said major liquefied petroleum gas (LPG) sellers have blamed illegal refillers — not inadequate imports — as the culprit for the supply disruption. "We want to place order in the industry. We have been receiving complaints that the illegal refillers have been causing chaos in the industry. They are not safe, and they are the ones that are not being given supply because they don’t have contracts. They also use unfit cylinders that should be phased out," Mr. Reyes said. Pete V. Jayme of Petron Corp. said they have been retrieving cylinders of Gasul, which is retailed by Petron, that were previously refilled by illegal operators. Mercedita G. Pastrana, executive director of the LPG Industry Association, Inc., said the Energy department should issue a circular ensuring strict standards for LPG cylinders to avoid supply disruption. "We have noticed that independent refillers are not sending their cylinders for re-qualification. We request the Secretary [of Energy to issue] the circular to address malpractices in the industry," she said. Ms. Pastrana noted that LPG sellers do not mind if they commit violations since they are not regulated by the Energy department. LPG dealers, meanwhile, called for more stringent rules for the industry. "Right now, penalties on abnormal practices with regards to cylinders are too low so it does not discourage illegal players to use other company’s cylinders," Shell brand manager Bernard Ong said. Oil Industry Management Bureau Director Zenaida Y. Monsada said a department the circular on the matter is still being modified to match an LPG bill currently being discussed in Congress. — Ava Kashima K. Austria, BusinessWorld