Oil industry stakeholders oriented on retail market rules

By Venus H. Sarmiento

Monday 3rd of September 2012

DAGUPAN CITY, Sept 3 (PIA) -- Dealers and retailers of liquid petroleum products (LPP) were oriented on the rules and regulations governing their businesses by the Department of Energy (DOE) in a half-day forum held here.

Loralai Capistrano of the DOE - Retail Market Monitoring and Special Concerns Division, said the multi-sectoral advocacy forum aims to stop the proliferation of unsafe practices in the LPP retailing business as well as the establishment of minimum criteria for the retailing industry.

Capistrano said the minimum lot requirement for the business is 100 square meters.

Above ground tank is prohibited and the fuel storage, handling, and transfer or dispensing of the products must be within standards.

“Product quantity must be in perfect calibration, not under delivered or over delivered,” Capistrano said, during the forum held at the Star Plaza Hotel in this city on Wednesday.

Business men who wish to engage in the LPP business must file a notice at least five days prior to start of the actual operations.

The notice must include the business name, location, and complete address and contact numbers.

Documentary requirements include barangay clearance; registration from the Department of Trade and Industry and Securities and Exchange Commission(as applicable); zoning or locational clearance; building permit, environmental compliance certificate issued by the Department of Environment and Natural Resources –Environmental Management Bureau; discharge permit, if applicable.

Still required are reference standard/codes and compliant statement for facility design and operation; fire safety inspection certificate; mayor’s permit and suppliers certificate from the Oil Industry Management Bureau (OIMB); list of dispensing pumps, storage tanks and tank trucks with corresponding capacities and; lay-out plan and latest photograph of the retail outlet.

For those who wish to renew, owners should present a barangay business permit, mayor’s permit, fire safety inspection certificate and supplier’s certificate from an OIMB registered supplier or distributor.

Illegal practices such as illegal trading, adulteration (not meeting Philippine National Standards), under delivery and hoarding will cost the owner a fine of P10,000 for the first and second offenses. On the third offense, the business will be recommended for suspension or revocation of business permit.

Capistrano urged the public and businessmen not to patronize violators and uphold safety and fair trade practices.

Participants to the forum, particularly the generic or "small-time players" expressed gratitude that they were enlightened on the rule and regulations of the oil industry.

The DOE is hopeful that they could conduct an in-depth seminar for interested retailers in Pangasinan. (ANL/VHS-PIA 1, Pangasinan)