Dear PAO,
My neighbor is hoarding petroleum gas in his backyard. We saw several gallons of gasoline being stored in his small basement. When I confronted him, he argued that he has the right to buy any quantity of gasoline as long as he can pay for it. He added that he should not be blamed for preparing for the worst. Is he legally correct? Is hoarding not punishable by law?
Fernandez
Dear Fernandez,
No, your neighbor is not legally correct. Hoarding of petroleum gas is categorically prohibited under Section 2 (D) of Presidential Decree 1865 (PD 1865).
Foremost, Section 3(h) of PD 1865 defines hoarding as:
"'Hoarding' — the undue accumulation of a trader of petroleum and/or petroleum products beyond his or its normal inventory levels, and/or unjustified refusal to dispose of, sell or distribute the same to consumers; or the unreasonable accumulation by a person other than a trader of petroleum and or petroleum products.”
Since your neighbor is not a trader of petroleum and is just a mere consumer, he is prohibited by law to unreasonably accumulate or store petroleum.
Furthermore, hoarding of petroleum gas is considered a criminal offense. Section 4 of PD 1865 provides:
"SEC. 4. Penalties. — Any person who commits any act herein prohibited shall, upon conviction, be punished with a fine of not less than twenty thousand pesos (P20,000.00) but not more than Fifty thousand pesos (P50,000.00), or imprisonment of at least two (2) years but not more than five (5) years, or both, in the discretion of the court. In cases of second and subsequent conviction under this act, the penalty shall be both fine and imprisonment as provided herein. Furthermore, the petroleum and/or petroleum products subject matter of the illegal trading, adulteration, shortselling, hoarding, overpricing or, misuse, shall be forfeited in favor of the Government: Provided, That if the petroleum and/or petroleum products have already been delivered and paid for, the offended party [the payment made] shall be indemnified twice the amount paid [the subject of forfeiture] and if the seller who has not yet delivered has been fully paid, the price received shall be returned to the buyer with an additional amount equivalent to such price; and in addition, if the offender is [a trader] an oil company, marketer, distributor, refiller, dealer, sub-dealer and other retail outlets, or hauler, the cancellation of his license.”
Thus, unreasonable accumulation of petroleum products or hoarding is not only prohibited, but also punishable by law. Accordingly, your neighbor may have to explain further the reason why he stores gallons of gasoline in his basement. His actions will be judged based on the quantity he has in store, his reasons for buying such, and the surrounding circumstances, to determine if he violated Section 4 of PD 1865.
In sum, hoarding disrupts the supply and demand for such products, and it poses risks/hazards, especially if stored improperly. Hoarding fuel beyond one’s needs, especially in times of scarcity, is not preparedness — it is profiteering at the expense of others.
We hope that we were able to answer your queries. This advice was solely based on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
