Article 102p. 102

NATURAL RESOURCES AND ENVIRONMENTAL LAWS STATUTES and IMPLEMENTING RULES AND REGULATIONS

gasoline stations: Provided, That the training herein shall

include LPG retailing.

To this end, the DOE shall, in accordance with the

Technology and Livelihood Resource Center (TLRC) and

Technical Education and Skills Development Authority

(TESDA), coordinate with new industry participants and

existing

petroleum

dealers'

associations

in

the

formulation and implementation of a two-fold program

on

management

and

skills

training

for

the

establishment, operation, and maintenance of gasoline

stations.

Persons

who

successfully

complete

the

two-fold

program shall be entitled to government assistance

being extended by government lending agencies, in the

form of medium- to long-term loans with low interest

rates and to the gasoline training station training and

loan fund provided hereunder, to serve as capital for the

establishment and operation of gasoline stations.

For

these

purposes,

there

is

hereby

established

a

gasoline station and loan fund with the initial amount of

Three hundred million pesos (P 300,000,000.00) to be

provided by the Philippine Amusement and Gaming

Corporation (PAGCOR) and administered by the DOE

under a separate account.

Of this amount, two percent (2%) plus any additional

funding shall be allocated for he two-fold program; one

percent (1%) plus any additional funding shall be set

aside

for

administrative,

maintenance,

and

other

operating expenses; ninety-four percent (94%) shall be

used exclusively for lending and financial assistance; the

remaining

three

percent

(3%)

shall

be

utilized

in

accordance with the provisions of Section 26 of this Act:

Provided, That the loans to be awarded herein shall be

from short- to medium-term with low interest rates;

Provided, further, That these loans shall be awarded to

qualified persons who are able to comply with the

conditions

set

forth in the next two (2) preceding

paragraphs.

CHAPTER

III

Anti-Trust

Safeguards, Other

Prohibited Acts and Remedies

Section

11.

Anti-Trust

Safeguards.

–

To

ensure

fair

competition and prevent cartels and monopolies in the

Industry, the following acts are hereby prohibited:

(a)

Cartelization

which

means

any

agreement,

combination or concerted action by refiners, importers

and/or dealers, or their representatives, to fix prices,

restrict outputs or divide markets, either by products or

by areas, or allocate markets, either by products or by

areas, in restraint of trade or free competition, including

any

contractual stipulation which prescribes pricing

levels and profit margins;

(b) Predatory pricing which means selling or offering to

sell any oil product at a price below the seller's or

offeror's

average

variable

cost

for

the

purpose

of

destroying competition, eliminating a competitor or

discouraging a potential competitor from entering the

market: Provided, however, That pricing below average

variable cost in order to match the lower price of the

competitor

and

not

for

the

purpose

of destroying

competition shall not be deemed predatory pricing. For

purposes

of

this

provision,

"variable

cost"

as

distinguished from "fixed cost", refers to costs such as

utilities or raw materials, which vary as the output

increases or decreases and "average variable cost" refers

to the sum of all variable costs divided by the number of

units of outputs.

Any person, including but not limited to the chief

operating officer, chief executive officer or chief finance

officer of the partnership, corporation or any entity

involved, who is found guilty of any of the said prohibited

acts shall suffer the penalty of three (3) to seven (7) years

imprisonment, and a fine ranging from One million

pesos

(P

1,000,0000.00)

to

Two

million

pesos

(P

2,000,000.00).

Section

12.

Other

Prohibited

Acts.

–

To

ensure

compliance with the provisions of this Act, the refusal to

comply with any of the following shall likewise be

prohibited:

(a) submission of any reportorial requirements;

(b)

use

of

clean

and

safe

(environment

and

worker-benign) technologies;

(c) any order or instruction of the DOE Secretary issued

in the exercise of his enforcement powers under Section

15 of this Act; and

(d) registration of any fuel additive with the DOE prior to

its use as an additive.

Any person, including but not limited to the chief

operating

officer

or

chief

executive

officer

of

the

partnership, corporation or any entity involved, who is

found guilty of any of the said prohibited acts shall suffer

the penalty of imprisonment for two (2) years and a fine

ranging from Two hundred fifty thousand pesos (P

250,000.00)

to

Five

hundred

thousand

pesos

(P

500,000.00).

➔

See Guidelines Implementing the

Registration of Fuel Additives here

Section

13.

Remedies.

–

(a)

Government

Action.

–

Whenever it is determined by the Joint Task Force

created under Section 14 (d) of this Act, there is a

threatened or imminent or actual violation of Section 11

of

this

Act,

it

shall

direct

the

provincial

or

city

prosecutors having jurisdiction to institute an action to

prevent or restrain such violation with the Regional Trial

Court of the place where the defendants reside or has

his place of business. Pending hearing of the complaint

and before final judgment, the court may at any time

issue a temporary restraining order or an injunction as

shall be deemed just within the premises, under the

same conditions and principles as injunctive relief is

granted under the Rules of Court.

Whenever it is determined by the Joint Task Force that

the

Government

or

any

of

its

instrumentalities

or

agencies, including government-owned or –controlled

corporations, shall suffer loss or damage in its business

or property by reason of violation of Section 11 of this Act,

such instrumentality, agency or corporation may file an

action to recover damages and the costs of the suit with

the

Regional

Trial

Court

which

has

jurisdiction

as

provided above.

(b) Private Complaint. – Any person or entity shall report

any violation of Section 11 of this Act to the Joint Task

Force. The Joint Task Force shall investigate such reports

in aid of which the DOE Secretary may exercise the

powers under Section 15 of this Act. The Joint Task Force

shall

prepare

a

report embodying its findings and

recommendations as a result of any such investigation,

and the report shall be made at the discretion of the

Joint Task Force. In the event that the Joint Task Force

determines that there has been a violation of Section 11

of this Act, the private person or entity shall be entitled

to

sue

for

and

obtain

injunctive

relief,

as well as

damages, in the Regional Trial Court having jurisdiction

over any of the parties, under the same conditions and

principles as injunctive relief is granted under the Rules

of Court.

© 2018 Compiled by RGL

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