Villar recommends review of regulation in LPG sale and distribution

Nacionalista Party President Sen. Manny Villar cited the need to put in place mechanisms and policies to ensure effective regulation in the sale and distribution of liquefied petroleum gas (LPG) to protect the Filipino consumers and end-users.

"This is not the first time that we encounter shortage in supply and fluctuations in prices of LPG. In many instances, the shortage and price hikes are not even market-driven but artificial. Thus, it is about time we review the LPG market operations and implement policies to make it more regulated to protect the consumers," said Villar.

Stricter rules, according to Villar, would put a stop to the abusive trade practices in the LPG market particularly involving hoarders and illegal refillers. "A better regulated LPG market would also level the playing field and allow small industry players to compete head-on with the big multinationals," he also cited.

Over 90 percent of the domestic market for LPG has been controlled by a handful of companies such as Petron, Liquigaz, Shell, and Total. The small players, who have been clamoring for industry regulation, are left with only a small percentage of the market.

"If competition is healthy, market-dictated and are not monopolized by a certain group or cartel, then there is no room for abusive and prohibitive pricing. The buying public will not be forced to purchase excessively priced LPG tanks because of artificial shortage," said Villar.

Villar, former Senate president, recommended the adoption of mechanisms that would ensure the accuracy of the content of LPG tanks. He earlier filed a legislation requiring retailers of LPG to have a weighing scale or equipment in their stores or establishments and prescribing a uniform or standard design for the outlet and regulator of the LPG tanks.

"With a uniform design for the outlet or regulator of the LPG tanks, the consumers will have easier access to any brand of LPG tanks, especially in times of shortage in the supply of certain brands of LPG. Steady supply of basic consumer goods such as LPG should be prioritized," Villar added.