DoE revises rules for selling liquid fuels

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To ensure the quality of liquid fuels and promote fair practices in the market, the Department of Energy (DoE) issued a circular revising rules and regulations covering the business.

The “Promulgating Revised Rules and Regulations Governing the Business of Retailing Liquid Fuels” circular applies to “all persons engaged or intending to engage in” such a business, the DoE said.

If a person intends to enter the business of selling liquid fuels, he or she should secure a valid certificate of compliance (COC) from the DoE’s Oil Industry Management Bureau (OIMB) or its counterparts in field offices. The certificate shall be valid for five years.

All applicants should submit to the DoE a filled-out and duly notarized application form; a notice of undertaking on liability; certification from distributor/supplier/dealer’s agreement; notarized statement indicating that the design and operation of the retail outlet comply with the Philippine National Standard; and payment of fee, among others.


Those who have not obtained or submitted all the requirements to secure a COC under an earlier circular released in 2003 shall be classified as new applicants and be covered by the amended rules.

If a local government unit (LGU) requires a COC as a prerequisite to getting a mayor’s or business permit, a certification may be given to a new retail outlet solely for the purpose of getting the permit.

Storing and dispensing liquid fuels that are for “own-use operation” will not be covered by the new rules only upon the issuance of a certificate of non-coverage (CNC) by the DOE. The circular defines own-use operation as the operation of a fleet of motor vehicles.

All new retail outlets should have a fixed and permanent dispending pump; pump island for single pump, ingress and egress that are at least 7 meters, or 23 feet, for each; facilities that include a canopy, boundary walls and master switch; signages and labels; and underground storage tank.

Inspectors from the OIMB or its field offices shall make unannounced and random visits to check or test dispensing pumps, take samples and test products on site or at the DoE laboratory, among others.

Those who are already selling liquid fuels shall submit data on purchase and sales volume per retail outlet and an authenticated copy of distributor/supplier/dealer’s agreement every January 30.

Failure to comply with the revised rules and submit the necessary documents shall be penalized, depending on the extent of the offense.

The circular will be reviewed periodically relative to the operation of the sector.

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