Department Circular No. DC 2006-04-0005





(PNS/DOE QS 001:2005)


WHEREAS, Republic Act (R.A.) No. 8479, otherwise known as the “Downstream Oil Industry Deregulation Act of 1998”, provides for the deregulation of the downstream oil industry to foster a truly competitive market which can better achieve the social policy objectives of fair prices, adequate and continuous supply of environmentally-clean and high quality petroleum products, e.g. gasoline, diesel, LPG and bunker;


WHEREAS, Section 26 of R.A. No. 8749, otherwise known as the “Philippine Clean Air Act of 1999”, provides that the DOE, together with the Department of Environment and Natural Resources (DENR), Bureau of Product Standards (BPS) and the Department of Science and Technology (DOST) and other stakeholders shall set specifications for all types of fuel and fuel-related products and improve fuel composition.  It shall also specify the allowable content of additives in all types of fuels and fuel-related products;


WHEREAS, Section 26 of R.A. No. 8749 also provides that every two (2) years thereafter or as the need arises, the specifications of unleaded gasoline and of automotive and industrial diesel fuels shall be reviewed and revised for further improvement in formulation and in accordance with the provisions of this Act;


WHEREAS, Memorandum Circular No. 2002-12-001 implemented the Clean Air Act Gasoline Specification for 2003 issued December 13, 2002;


WHEREAS, PNS/DOE QS 001:2005 was promulgated on December 5, 2005 to supersede PNS 1131:2002 (DOE:001:2002) as the latest revision of quality standard specification for Unleaded Gasoline;


WHEREAS, the promulgation of PNS/DOE QS 001:2005 in effect requires the issuance of corresponding circular to implement the same, and supersedes Memorandum Circular No. 2002-12-001;


WHEREAS, Department Circular No. 2001-09-003 entitled “Octane Posting at the Pump” was previously issued requiring all dealers/operators of gasoline stations to display the octane rating, in terms of Research Octane Number (RON) as part of the gasoline label at the pumps sold in their establishment through a “sticker” following the prescribed specifications to properly guide the consumer on the quality of gasoline they are buying, thereby relating it to the price they are paying;


NOW, THEREFORE, the following guidelines are hereby adopted to effectively implement the Philippine National Standard specification for unleaded motor gasoline:


(1)      Starting May 15, 2006, only unleaded motor gasoline complying with PNS/DOE QS 001: 2005 shall be manufactured, imported, sold, offered for sale, dispensed, or introduced into commerce in the Philippines;


(2)      All persons engaged in the importation of unleaded motor gasoline and/or gasoline blending components shall submit to the DOE, as part of the reportorial requirements under Section 7 (b) of DOE Department Circular No. 98-03-004 implementing R.A. No. 8479, a Certificate of Quality (COQ) showing all the properties listed in the Philippine National Standard for gasoline (PNS/DOE QS 001:2005) with the corresponding values resulting from the prescribed test methods, not later than fifteen (15) days after the arrival of the shipment;


(3)      All dealers/operators of gasoline stations are required to properly label the following:


(a)      all regular gasoline dispensing pumps with the advisory “NOT RECOMMENDED FOR VEHICLES WITH FOUR (4) OR MORE WHEELS”, noticeable enough to be readable by the end-users;


(b)      all dispensing pumps for gasoline containing organo-metallic compound with the advisory “THIS CONTAINS ORGANO-METALLIC COMPOUND/ADDITIVE”; and


(c)       all gasoline dispensing pumps with the prescribed octane sticker as provided under Department Circular No. 2001-09-003.  The sticker should indicate the word “minimum” below the octane number;


(4)      The oil company/ies shall conduct regular monitoring of all activities being undertaken at their refineries, bulk plants, terminals, depots, tank trucks and gasoline stations/retail outlets nationwide to ensure that the quality of all gasoline being sold meets the latest gasoline specifications as well as in compliance with this Circular.  The DOE shall, among others, conduct the random quality and quantity sampling and testing of gasoline secured from these facilities; and


(5)      Failure to comply with provisions of this Department Circular shall subject the violator to the corresponding sanctions imposed by appropriate laws, including R.A. 8479 and R.A. 8749, and DOE rules and regulations.


This Department Circular shall take effect after fifteen (15) days following its publication in any newspaper of general circulation, and shall remain in effect unless otherwise revoked or amended.


Fort Bonifacio, Taguig City, Metro Manila, 25 April 2006.







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