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The
HONORABLE SECRETARY VINCENT S. PEREZ, in his capacity as the Secretary of the
Department of Energy, Petitioner, - versus - |
G.R. No. 159149
Present: QUISUMBING, J., Chairperson, CARPIO, |
CARPIO MORALES,
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TINGA, and VELASCO,
JR., JJ. |
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LPG REFILLERS ASSOCIATION OF THE PHILIPPINES, INC., Respondent. |
Promulgated: |
x- - - - - - - - - - - - - - - - - - -
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QUISUMBING, J.:
Before
us is a petition for review on certiorari under Rule 45, assailing the Decision[1]
and Order[2]
of the Regional Trial Court of Pasig City, Branch 161, in SCA Case No. 2318,
which nullified Circular No. 2000-06-010 of the Department of Energy (DOE).
The facts are
undisputed.
Batas Pambansa Blg. 33, as amended, penalizes illegal trading,
hoarding, overpricing, adulteration, underdelivery, and underfilling of
petroleum products, as well as possession for trade of adulterated petroleum
products and of underfilled liquefied petroleum gas (LPG) cylinders.[3]
The said law sets the monetary penalty for violators to a minimum of P20,000 and a maximum of P50,000.[4]
On
SECTION 4. NO
PRICE DISPLAY BOARD –
LPG Marketer/LPG Dealer/LPG
Retail Outlet
1st Offense - Reprimand/warning letter
2nd
Offense - Recommend
suspension of business operation to the proper local government
unit
3rd Offense - Recommend business closure to the proper local government
unit and initiate
criminal proceedings
SECTION 5. NO
WEIGHING SCALE –
A. LPG Refiller/Marketer
1st Offense - Fine of P5,000
2nd
Offense - Fine
of P10,000
3rd Offense - Recommend business closure to the proper local government unit
B. Dealer
1st Offense - Fine of P3,000
2nd
Offense - Fine
of P7,000
3rd Offense - Recommend business closure to the proper
local government unit
C. LPG Retail Outlet
1st
Offense - Reprimand
2nd Offense - Fine
of P500.00
3rd
Offense - Fine of P1,000.00
SECTION 6. NO
TARE WEIGHT OR INCORRECT TARE WEIGHT MARKINGS. (REQUIREMENT ON ENGRAVED TARE WEIGHT SHALL
TAKE EFFECT TWO (2) YEARS AFTER EFFECTIVITY OF THIS CIRCULAR)
A. LPG
Refiller/Marketer
1st Offense - Fine of P3,000 for each
cylinder
2nd Offense - Fine
of P5,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
B. Dealer
1st Offense - Fine of P2,000 for each
cylinder
2nd Offense - Fine
of P4,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
C. LPG Retail Outlet
1st
Offense - Fine of P1,000 for each
cylinder
2nd Offense - Fine
of P2,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
SECTION 7. NO
APPROPRIATE OR AUTHORIZED LPG SEAL
A. LPG
Refiller/Marketer
1st Offense - Fine of P3,000 for each
cylinder
2nd Offense - Fine
of P5,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
B. Dealer
1st Offense - Fine of P2,000 for each
cylinder
2nd Offense - Fine
of P4,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
C. LPG Retail Outlet
1st
Offense - Fine of P1,000 for each
cylinder
2nd Offense - Fine
of P2,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
SECTION 8. NO
TRADE NAME, UNBRANDED LPG CYLINDERS, NO SERIAL NUMBER, NO DISTINGUISHING
COLOR, NO EMBOSSED IDENTIFYING MARKINGS ON CYLINDER OR DISTINCTIVE COLLAR OR
DESIGN (REQUIREMENT ON SERIAL NUMBER AND DISTINCTIVE COLLAR OR DESIGN SHALL
TAKE EFFECT TWO (2) YEARS AFTER EFFECTIVITY OF THIS CIRCULAR)
A. LPG
Refiller/Marketer
1st Offense - Fine of P4,000 for each
cylinder
2nd Offense - Fine
of P5,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
B. Dealer
1st Offense - Fine of P3,000 for each
cylinder
2nd Offense - Fine
of P4,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
C. LPG Retail Outlet
1st
Offense - Fine of P1,000 for each
cylinder
2nd Offense - Fine
of P2,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
SECTION 9. UNDERFILLED
LPG CYLINDERS
A. LPG
REFILLER/MARKETER
1st Offense - Fine of P4,000 for each
cylinder
2nd Offense - Fine
of P6,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
B. DEALER
1st Offense - Fine of P3,000 for each
cylinder
2nd Offense - Fine
of P4,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
C. LPG
RETAIL OUTLET
1st
Offense - Fine of P1,000 for each
cylinder
2nd Offense - Fine
of P2,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
SECTION 10. TAMPERING, ALTERING, OR MODIFYING OF LPG CYLINDER
THRU ANY MEANS SUCH AS BUT NOT LIMITED TO CHANGING THE VALVE, REPAINTING, AND
RELABELLING BY ANY PERSON OR ENTITY OTHER THAN THE LEGITIMATE AND REGISTERED
OWNER OF THE SAME. FOR THIS PURPOSE,
LPG REFILLER, MARKETER, DEALER, OR RETAIL OUTLET, AS THE CASE MAY BE, WHO HAS
POSSESSION OF SUCH ILLEGALLY TAMPERED, ALTERED, OR OTHERWISE MODIFIED LPG
CYLINDER SHALL BE HELD LIABLE FOR THIS OFFENSE
A. LPG
Refiller/Marketer
1st
Offense - Fine of P5,000 for each
cylinder
2nd
Offense - Fine
of P10,000 for each cylinder
3rd Offense - Recommend business closure to the proper local government unit
B. Dealer
1st
Offense - Fine of P3,000 for each
cylinder
2nd Offense - Fine
of P5,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
C. LPG Retail Outlet
1st
Offense - Fine of P1,500 for each
cylinder
2nd Offense - Fine
of P3,000 for each cylinder
3rd Offense - Recommend business closure to the proper
local government unit
SECTION 11. UNAUTHORIZED DECANTING OR REFILLING OF LPG CYLINDERS
1st
Offense - Fine of
P5,000 for each cylinder
2nd
Offense - Fine of
P10,000 for each cylinder
3rd
Offense - Recommend
business closure to the proper local government unit
SECTION 12. HOARDING OF PETROLEUM PRODUCTS INCLUDING LIQUEFIED
PETROLEUM GAS
1st
Offense - Fine of
P10,000 per cylinder
2nd
Offense - Recommend
business closure to the proper local government unit plus the
filing of appropriate criminal action
SECTION 13. REFUSAL TO ALLOW OR COOPERATE WITH DULY AUTHORIZED
INSPECTORS OF THE ENERGY INDUSTRY ADMINISTRATION BUREAU (EIAB) OF THE
DEPARTMENT OF ENERGY IN THE CONDUCT OF THEIR INSPECTION/INVESTIGATION, WHETHER
REGULAR AND ROUTINARY OR COMPLAINT-INITIATED
1st Offense - Fine
of P10,000
2nd Offense - Recommend business closure to the
proper
local government unit
SECTION 14. REFUSAL
OR FAILURE TO PAY FINE – The Department of Energy shall recommend
to the proper local government unit the closure of business of a respondent
who refuses or fails to pay any administrative fine without prejudice to the
filing of an appropriate criminal action if warranted.[5]
Respondent
LPG Refillers Association of the Philippines, Inc. asked the DOE to set aside
the Circular for being contrary to law.
The DOE, however, denied the request for lack of merit.
Respondent then filed a petition
for prohibition and annulment with prayer for temporary restraining order and/or
writ of preliminary injunction before the trial court.
After
trial on the merits, the trial court nullified the Circular on the ground that
it introduced new offenses not included in the law.[6]
The court intimated that the Circular, in
providing penalties on a per cylinder basis for each violation, might exceed
the maximum penalty under the law. The
decretal part of its Decision reads:
IN
VIEW OF THE FOREGOING, this Court renders judgment declaring DOE Circular No.
2000-06-010 null and void and prohibits the respondent from implementing the
same.
SO ORDERED.[7]
The trial court denied for lack of merit petitioner’s
motion for reconsideration. Hence this petition, raising the following issues:
I
WHETHER OR NOT
THE COURT A QUO GRAVELY ERRED IN HOLDING THAT “A CLOSE SCRUTINY
OF BP 33, PD 1865 AND R.A. NO. 8479 SHOWS THAT OFFENSES LIKE NO PRICE DISPLAY
[BOARD], NO WEIGHING SCALE, ETC. SET FORTH IN THE CIRCULAR ARE NOT PROVIDED
FOR IN ANY OF THE THREE (3) LAWS”.
II
WHETHER
OR NOT THE COURT A QUO GRAVELY ERRED IN HOLDING THAT “A SCRUTINY
OF THE NEW SET OF PENALTIES PROVIDED BY THE CIRCULAR SHOWS THAT THE PENALTIES
THIS TIME ARE BASED ON PER CYLINDER BASIS”; THAT “BEING SUCH, NO CEILING WAS
PROVIDED FOR AS TO THE ADMINISTRATIVE FINES”; THAT “AS ILLUSTRATED BY THE
PETITIONER, FOR JUST ONE LPG CYLINDER FOUND VIOLATING AT LEAST SEC[TIONS] 6,
7, 8, 9, 10 AND 11 OF THE [CIRCULAR], A FINE OF P24,000.00 IS IMPOSED;”
AND THAT “THIS WILL CLEARLY BE BEYOND THE P10,000.00 PROVIDED BY THE
LAWS.”
III
WHETHER OR NOT
THE COURT A QUO GRAVELY ERRED IN HOLDING THAT SECTION 16 OF
PETITIONER’S CIRCULAR WHICH AUTHORIZES THE IMPOSITION OF PECUNIARY PENALTIES
WITH THE TOTAL FINE NOT EXCEEDING P20,000.00 FOR RETAIL OUTLETS
VIOLATES THE PENALTY CEILING OF P10,000.00 SET UNDER BP BLG. 33, AS
AMENDED.
IV
WHETHER
OR NOT THE COURT A QUO GRAVELY ERRED IN HOLDING THAT SINCE
SECTION 5(g) OF R.A. 7638 FINDS NO REFERENCE IN DOE CIRCULAR NO. 2000-06-010,
THE SAME SHOULD BE DISREGARDED.
V
WHETHER OR NOT
THE COURT A QUO GRAVELY ERRED IN HOLDING THAT “ON THE NEW
OFFENSES INTRODUCED IN THE CIRCULAR SUCH AS SECTIONS 4, 5, 10, 13 AND 14 AND
THE IMPOSITION OF THE GRADUATED PENALTIES ON ‘A PER CYLINDER BASIS’, THIS
COURT FINDS [NO] REASON TO DISTURB ITS FINDINGS THAT RESPONDENT-MOVANT
EXCEEDED ITS AUTHORITY. X X X IT SHOULD BE REMEMBERED THAT BP BLG. 33 AS
AMENDED AND P.D. 1865 ARE CRIMINAL STATUTES AND MUST BE CONSTRUED WITH SUCH
STRICTNESS AS TO CAREFULLY SAFEGUARD THE RIGHTS OF THE DEFENDANT.”
VI
WHETHER OR NOT
THE COURT A QUO ERRED IN HOLDING THAT “THE ASSAILED CIRCULAR
SETS NO MAXIMUM LIMIT AS TO THE FINE THAT MAY BE IMPOSED ON AN ERRING PERSON
OR ENTITY TO WHICH FACT MOVANT CONCEDES.
FOR ONE (1) CYLINDER ALONE, NOT ONLY DOES THE CIRCULAR MAKE THE FINE
EXCESSIVE TO THE EXTENT OF BEING CONFISCATORY, BUT IT EVEN IMPOSES A PENALTY
WHICH MAY EVEN GO BEYOND THAT MAXIMUM IMPOSABLE FINE OF P50,000.00 SET
BY P.D. 1865 IN ITS SEC. 4 AFTER A CRIMINAL PROCEEDING.”[8]
To our mind, the issue raised by
petitioner may be reduced to the sole issue of whether the Regional Trial
Court of Pasig erred in declaring the provisions of
the Circular null and void, and prohibiting the Circular’s implementation.
Petitioner argues that
the penalties for the acts and omissions enumerated in the Circular are
sanctioned by Sections 1[9]
and 3-A[10]
of B.P. Blg. 33 and Section 23[11]
of Republic Act No. 8479.[12]
Petitioner adds that Sections 5(g)[13]
and 21[14]
of Republic Act No. 7638[15]
also authorize the DOE to impose the penalties provided in the Circular.
Respondent
counters that the enabling laws, B.P. Blg. 33 and R.A. No. 8479, do not
expressly penalize the acts and omissions enumerated in the Circular. Neither
is the Circular supported by R.A. No. 7638, respondent claims, since the said
law does not pertain to LPG traders. Respondent
maintains that the Circular is not in conformity with the law it seeks to
implement.
We
resolve to grant the petition.
For
an administrative regulation, such as the Circular in this case, to have the
force of penal law, (1) the violation of the administrative regulation must be
made a crime by the delegating statute itself; and (2) the penalty for such
violation must be provided by the statute itself.[16]
The
Circular satisfies the first requirement. B.P. Blg. 33, as amended, criminalizes
illegal trading, adulteration, underfilling, hoarding, and overpricing of
petroleum products. Under this general description
of what constitutes criminal acts involving petroleum products, the Circular
merely lists the various modes by which the said criminal acts may be
perpetrated, namely: no price display board, no weighing scale, no tare weight
or incorrect tare weight markings, no authorized LPG seal, no trade name,
unbranded LPG cylinders, no serial number, no distinguishing color, no
embossed identifying markings on cylinder, underfilling LPG cylinders,
tampering LPG cylinders, and unauthorized decanting of LPG cylinders. These specific acts and omissions are
obviously within the contemplation of the law, which seeks to curb the
pernicious practices of some petroleum merchants.
As for the second requirement,
we find that the Circular is in accord with the law. Under B.P. Blg. 33, as
amended, the monetary penalty for any person who commits any of the acts
aforestated is limited to a minimum of P20,000 and a maximum of P50,000.
Under the Circular, the maximum
pecuniary penalty for retail outlets is P20,000,[17]
an amount within the range allowed by law. However, for the refillers, marketers,
and dealers, the Circular is silent as to any maximum monetary penalty.
This mere silence, nonetheless, does
not amount to violation of the aforesaid statutory maximum limit. Further, the mere fact that the Circular
provides penalties on a per cylinder basis does not in itself run counter to
the law since all that B.P. Blg. 33 prescribes are the minimum and the maximum
limits of penalties.
Clearly, it is B.P. Blg. 33, as
amended, which defines what constitute punishable acts involving petroleum
products and which set the minimum and maximum limits for the corresponding
penalties. The Circular merely
implements the said law, albeit it is silent on the maximum pecuniary penalty
for refillers, marketers, and dealers.
Nothing in the Circular contravenes the law.
Noteworthy, the enabling laws on
which the Circular is based were specifically intended to provide the DOE with
increased administrative and penal measures with which to effectively curtail
rampant adulteration and shortselling, as well as other acts involving
petroleum products, which are inimical to public interest. To nullify the Circular in this case would be
to render inutile government efforts to protect the general consuming public
against the nefarious practices of some unscrupulous LPG traders.
WHEREFORE, the petition is GRANTED.
The assailed Circular No. 2000-06-010 of DOE is declared valid. The Decision and Order of the Regional Trial Court of
Pasig City, Branch 161, in SCA Case No. 2318, nullifying said Circular and prohibiting its implementation are hereby
REVERSED and SET ASIDE.
No pronouncement as to costs.
SO ORDERED.
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LEONARDO A. QUISUMBING Associate Justice |
WE CONCUR:
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ANTONIO T. CARPIO Associate Justice |
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CONCHITA CARPIO
MORALES Associate Justice |
DANTE O. TINGA Associate Justice |
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PRESBITERO J. VELASCO,
JR. Associate Justice |
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A T T E S T A T I O N
I attest that the conclusions in the above Decision
had been reached in consultation before the case was assigned to the writer of
the opinion of the Court’s Division.
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LEONARDO A. QUISUMBING Associate Justice Chairperson |
C E R T I F I C A T I O N
Pursuant to Section 13, Article VIII of the
Constitution, and the Division Chairperson’s Attestation, I certify that the
conclusions in the above Decision had been reached in consultation before the
case was assigned to the writer of the opinion of the Court’s Division.
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ARTEMIO V. PANGANIBAN Chief Justice |
[1] Rollo, pp. 64-72. Penned by Judge Alicia P. Marińo-Co.
[2]
[3] SEC. 2. Prohibited
Acts. – The following acts are prohibited and penalized:
(a)
Illegal trading in petroleum and/or petroleum products;
(b) Adulteration of finished petroleum products, or
possession of adulterated finished petroleum products for the purpose of sale,
distribution, transportation, exchange or barter;
(c) Underdelivery or underfilling beyond authorized
limits in the sale of petroleum products or possession of underfilled liquefied
petroleum gas cylinder for the purpose of sale, distribution, transportation,
exchange or barter;
x
x x x
[(b)]
(D) Hoarding of petroleum and/or petroleum products;
[(c)]
(E) Overpricing in the sale of petroleum products;
[(d)]
(F) Misuse of petroleum allocations;
[(e)] (G) Speed contests and rallies involving mainly
the use of motor vehicles, motor-driven watercraft or aircraft utilizing
petroleum-derived fuels, including car and motorcycle rallies and drag racing,
without the permit from the Bureau of Energy Utilization; and
[(f)] (H) Sky-diving, and water-skiing except when methanol is
used for the power-boat operation.
[4] SEC. 4. Penalties. – Any person who commits any act herein prohibited shall, upon conviction, be punished with a fine of not less than [two] TWENTY thousand pesos [(P2,000)] (P20,000) but not more than [Ten] FIFTY thousand pesos [(P10,000)] (P50,000)….
[5] Rollo, pp. 274-280.
[6] Batas Pambansa Blg. 33 (1979), Presidential Decree No. 1865 (1983), or Republic Act No. 8479 (1998).
[7] Rollo, p. 72.
[8]
[9] SECTION 1. Declaration of Policy. – It is the declared policy of the State to institutionalize as a national way of life energy conservation geared towards the judicious and efficient use of energy in order to enhance availability of energy supplies required to support economic, social and developmental goals. In view of the continuing uncertainty of the international oil supply, it is imperative that measures to conserve energy be strengthened and that acts and activities involving petroleum and/or petroleum products contrary to the intent and spirit of judicious usage and conservation of energy, which are inimical to the public interest and national security, be prohibited and appropriate sanction therefor be imposed.
[10] Section 3-A (inserted by Section 3 of PD No. 1865) reads:
“SEC. 3-A. Rules and Regulations; Administrative sanctions for violation thereof. – The Bureau of Energy Utilization shall issue such rules and regulations as are necessary to carry into effect the provisions of this Act, subject to the approval of the Minister of Energy, after consultation with the affected industry sectors. Said rules and regulations shall take effect fifteen (15) days from the date of its publication in two (2) newspapers of general circulation.
“The
Bureau of Energy Utilization is empowered to impose in an administrative
proceeding, after due notice and hearing, upon any person who violates any
provision of such rules and regulations, a fine of not more than ten thousand
pesos (P10,000.00) or to suspend or remove the
license or permit of a hauler, marketer, refiller, dealer, sub-dealer or retail
outlet: Provided, That hearing in any administrative proceedings may be
waived by respondent. Provided,
Further, That during the pendency of such administrative proceeding, the
Bureau may suspend the business operations of such hauler, marketer, refiller,
dealer, sub-dealer or retailer or retail outlet operator when the suspension is
consistent with public interest. …
x x x x
“The
administrative sanction that may be imposed shall be without prejudice to the
filing of a criminal action as the case may warrant.”
[11] SEC. 23. Implementing Rules and Regulations. – The DOE, in coordination with the Board, the DENR, DFA, Department of Labor and Employment (DOLE), Department of Health (DOH), DOF, DTI, National Economic and Development Authority (NEDA) and TLRC, shall formulate and issue the necessary implementing rules and regulations within sixty (60) days after the effectivity of this Act.
[12] An Act Deregulating the Downstream Oil Industry, and For Other Purposes.
[13] SEC. 5. Powers and Functions. – The Department shall have the following powers and functions:
x x x x
(g) Formulate and implement programs, including a system of providing incentives and penalties, for the judicious and efficient use of energy in all energy-consuming sectors of the economy;
[14] SEC. 21. Appropriations. – x x x
Subject to existing rules and regulations, the funds and monies collected or which otherwise come into the possession of the Department and its bureaus from fees, surcharges, fines and penalties which the Department and its bureaus may impose and collect under this Act, x x x shall be disbursed for expenses necessary for the effective discharge of the powers and functions of the Department under this Act.
[15] An Act Creating the Department of Energy, Rationalizing The Organization and Functions of Government Agencies Related to Energy, and For Other Purposes.
[16] See
[17] DOE Circular No. 2000-06-010.
SEC. 16. Maximum Total Penalty. In the imposition of pecuniary penalties the total fine shall not exceed Twenty Thousand Pesos (P20,000.00) for retail outlets.