SEN. Bam Aquino on Friday urged the Department of Energy (DOE) to immediately finalize the operational guidelines for liquefied petroleum gas (LPG) cylinder swapping centers, saying the long-delayed program would give households and small businesses more opportunities to buy cheaper cooking gas.
Aquino, chairman of the Senate Committee on Trade, Commerce, and Entrepreneurship, said the “Palit Tangke” program would allow consumers to exchange LPG cylinders and choose more affordable refills from authorized sellers, provided the cylinders meet safety requirements.
“It would be a significant benefit for a family or small business if the tank-swapping scheme were implemented, allowing them the freedom to choose the cheaper LPG option,” Aquino said.
“At current rates, the price difference between the cheapest and most expensive tank exceeds P500,” he added.
An 11-kilogram LPG cylinder currently costs around P1,031 to P1,536, depending on the brand and location, according to Aquino. He said the price gap has become significant amid recent LPG price increases.
Seeks DOE update
In a Sept. 9 letter to Energy Secretary Sharon Garin, Aquino sought an update on the proposed Joint Department Circular governing the operation of LPG cylinder swapping centers under Republic Act (RA) 11592, or the LPG Industry Regulation Act.
He asked the DOE to provide a written update on the status of the circular, including remaining issues, consultations, and approvals needed before its issuance. He also sought the agency’s target date for finalizing and implementing the guidelines.
Aquino made the request ahead of the DOE’s budget hearing scheduled for Sept. 17.
RA 11592, enacted in October 2021, institutionalized the LPG Cylinder Exchange and Swapping Program to promote safer cylinders, protect consumers, and encourage competition in the LPG industry. The law requires the DOE, together with the Department of Trade and Industry (DTI), to formulate and publish the program, including procedures for cylinder exchange, swapping, and buyback, and the establishment of authorized swapping centers.
The law also provides that consumers should have freedom of choice in purchasing LPG-filled cylinders, while industry participants must observe fair, reasonable, and nondiscriminatory arrangements.
Industry safety, consumer costs
Aquino said the cylinder owner, rather than the consumer, should shoulder the cost of repairing or replacing a tank that is old, damaged, or requires maintenance.
He said the guidelines would also help remove unsafe or substandard cylinders from circulation and establish uniform rules for exchanging, handling, and improving LPG cylinders across brands.
The DOE and DTI are tasked under the law with implementing both the cylinder-swapping and cylinder-improvement programs, with safety as a primary consideration.
LPG company Regasco thanked Aquino for his support of the industry and advocacy for the full implementation of RA 11592.
“We will continue to work together for an industry that is safer, more orderly, and honest to the public,” the company said in a Facebook post.
Push for lower fuel taxes
Aquino’s call for LPG swapping guidelines came as he continued to push for measures to reduce petroleum prices.
He recently called for the immediate suspension of excise taxes on petroleum products, citing Dubai crude oil prices that had remained above $80 per barrel for more than 30 days.
He said the president is empowered under RA 12316 to suspend or reduce fuel excise taxes when the average price of Dubai crude reaches or exceeds $80 per barrel for one month.
Aquino has also filed Senate Bill (SB) 265, seeking to remove excise taxes on petroleum products, and SB 2047, proposing to reduce the value-added tax on goods and services, including fuel, from 12 percent to 10 percent.
