Presidential Decree No 1865

Presidential Decree No. 1865, s.
1983
Signed on May 25, 1983
Office of the President

of the Philippines
Malacañang
PRESIDENTIAL DECREE NO. 1865
AMENDING BATAS PAMBANSA BLG. 33, ENTITLED “AN ACT DEFINING

AND PENALIZING CERTAIN PROHIBITED ACTS INIMICAL TO THE PUBLIC
INTERESTS AND NATIONAL SECURITY INVOLVING PETROLEUM AND/OR
PETROLEUM PRODUCTS, PRESCRIBING PENALTIES THEREFOR AND FOR
OTHER PURPOSES”, BY INCLUDING SHORT-SELLING AND
ADULTERATION OF PETROLEUM AND PETROLEUM PRODUCTS AND
OTHER ACTS IN THE DEFINITION OF PROHIBITED ACTS, INCREASING
THE PENALTIES THEREIN, AND FOR OTHER PURPOSES”
WHEREAS, Batas Pambansa Bilang 33 defines and penalizes certain prohibited acts
inimical to the public interest and national security involving petroleum and/or
petroleum products;
WHEREAS, adulteration of finished petroleum products or possession of adulterated

finished petroleum products for the purpose of sale, distribution, transportation,
exchange or barter; and underdelivery or underfilling beyond authorized limits in the
sale of petroleum products or liquefied petroleum gas cylinders are pernicious
practices that are rampant and widespread;
WHEREAS, there is an urgent need to curb, if not totally eliminate, such nefarious
practices in the industry in order to better protect the consuming public;
WHEREAS, it is necessary to provide the implementing government agencies with

increased administrative and criminal penalties with which it can effectively curtail
petroleum product adulteration and shortselling as well as other prohibited acts and
activities involving petroleum and/or petroleum products which are inimical to public
interest and national security;
WHEREAS, in view of the foregoing considerations, it has become necessary to

amend certain provisions of Batas Pambansa Blg. 33, as well as to provide, new
provisions in the law;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by

virtue of the powers vested in me by the Constitution, do hereby order and decree as
follows:
SECTION 1. Section two of Batas Pambansa Blg. 33, as amended is further amended
to read as follows:
“SEC. 2. Prohibited Acts. – The following acts are prohibited and penalized:
“(a) Illegal trading in petroleum and/or petroleum products;
“(b) ADULTERATION OF FURNISHED 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;
“THE OIL COMPANY, PETROLEUM REFILLER, MARKETER, DEALER AND

RETAILER, AS THE CASE MAY BE, AND THE HAULER SHALL BE
RESPONSIBLE FOR THE QUANTITY AND QUALITY OF THE PETROLEUM
PRODUCT DELIVERED WHEN THE SAME IS SOLD ON DELIVERED BASIS.
“FOR THE PURPOSE OF THIS SUBPARAGRAPH, THE EXISTENCE OF THE

FACTS HEREUNDER SHALL GIVE RISE TO THE FOLLOWING
PRESUMPTIONS:
“1) THAT CYLINDERS CONTAINING LESS THAN THE REQUIRED

QUANTITY OF LIQUEFIED PETROLEUM GAS WHICH ARE NOT PROPERLY
IDENTIFIED, TAGGED AND SET APART AND REMOVED OR TAKEN OUT
FROM THE DISPLAY AREA AND MADE ACCESSIBLE TO THE PUBLIC BY
MARKETERS, DEALERS, SUB-DEALERS OR RETAIL OUTLETS ARE
PRESUMED TO BE FOR SALE;
“2) IN THE CASE OF A DISPENSING PUMP IN A PETROLEUM PRODUCTS

RETAIL OUTLET SELLING SUCH PRODUCTS TO THE PUBLIC, THE
ABSENCE OF AN OUT-OF-ORDER SIGN, OR PADLOCK, ATTACHED OR
AFFIXED TO THE PUMP TO PREVENT DELIVERY OF PETROLEUM
PRODUCTS THEREFROM SHALL CONSTITUTE A PRESUMPTION OF THE
ACTUAL USE OF THE PUMP IN THE SALE OR DELIVERY OF SUCH
PETROLEUM PRODUCTS; AND
“3) WHERE THE SEAL, WHETHER OFFICIAL OR OF THE OIL COMPANY,

AFFIXED TO THE DISPENSING PUMP, TANK TRUCK OR LIQUEFIED
PETROLEUM GAS CYLINDER, IS BROKEN, OR IS ABSENT OR REMOVED,
IT SHALL GIVE RISE TO THE PRESUMPTION THAT THE DISPENSING PUMP
IS UNDERDELIVERING, OR THAT THE LIQUEFIED PETROLEUM GAS
CYLINDER IS UNDERFILLED, OR THAT THE TANK TRUCK CONTAINS
ADULTERATED FINISHED PETROLEUM PRODUCTS OR IS UNDERFILLED;
“THE USE OF SUCH PUMPS, CYLINDERS OR CONTAINERS REFERRED TO

IN SUB-PARAGRAPH (1), (2) AND (3) OF THIS SUB-PARAGRAPH, TO
DELIVER PRODUCTS FOR SALE OR DISTRIBUTION SHALL
CONSTITUTE PRIMA FACIE EVIDENCE OF INTENT OF THE HAULER,
MARKETER, REFILLER, DEALER, RETAILER OUTLET OPERATOR TO
DEFRAUD;
“[(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 in the power-
boat operation.”
SEC. 2. Section three of the same Act is hereby amended to read as follows:
“SEC. 3. Definition of terms. – For the purpose of this Act, the following terms shall
be construed to mean:
“Illegal trading in petroleum and/or petroleum products” –
“(A) THE SALE OR DISTRIBUTION OF PETROLEUM PRODUCTS [FOR

PROFIT] WITHOUT LICENSE OR AUTHORITY FROM THE [GOVERNMENT]
BUREAU OF ENERGY UTILIZATION;
“(B) NON-ISSUANCE OF RECEIPTS BY LICENSES [TRADERS] OIL

COMPANIES, MARKETERS, DISTRIBUTORS, DEALERS, SUBDEALERS AND
OTHER RETAIL OUTLETS, TO FINAL CONSUMERS; PROVIDED: THAT
SUCH RECEIPTS, IN THE CASE OF GAS CYLINDERS, SHALL INDICATE
THEREIN THE BRAND NAME, TARE WEIGHT, GROSS WEIGHT, AND PRICE
THEREOF;
“(C) REFILLING OF LIQUEFIED PETROLEUM GAS CYLINDERS WITHOUT

AUTHORITY FROM SAID BUREAU, OR REFILLING OF ANOTHER
COMPANY’S OR FIRM’S CYLINDERS WITHOUT SUCH COMPANY’S OR
FIRM’S WRITTEN AUTHORIZATION;
“(D) MARKING OR USING IN SUCH CYLINDERS A TARE WEIGHT OTHER

THAN THE ACTUAL OR TRUE TARE WEIGHT THEREOF;
“(E) VIOLATION OF RULES AND REGULATIONS OF SAID BUREAU

REGARDING THE IMPLEMENTATION OF THIS ACT;
“(F) REMOVAL OR UNLOADING OF PETROLEUM PRODUCTS FROM ANY

LORRY, TANK TRUCK OR DELIVERY VEHICLE BY ANY PERSON OTHER
THAN THE CONTRACTED PURCHASER, OR IN PREMISES OF THE
PURCHASER’S RETAIL OUTLET OR BUSINESS ESTABLISHMENT;
“(G) USE OF PUMP METERING UNIT WHICH HAS NOT BEEN PROPERLY
CALIBRATED AND SEALED BY THE OFFICE OF THE CITY OR MUNICIPAL
TREASURER WHERE STATION OR OUTLET IS LOCATED, OR BY THE
NATIONAL SCIENCE AND TECHNOLOGY AUTHORITY (NSTA), OR BY ANY
OTHER GOVERNMENT AGENCY AUTHORIZED THEREFOR, OR IN THE
ABSENCE THEREOF BY THE OIL COMPANY; AND
“(H) USE OF A TANK TRUCK, LORRY, HAULING VEHICLE, OR OTHER

CONVEYOR OTHER THAN VESSELS OR BARGES FOR THE DELIVERY OF
PETROLEUM PRODUCTS WHICH HAS NOT BEEN REGISTERED WITH THE
BUREAU OF ENERGY UTILIZATION AND TANKS, CONTAINERS OR
COMPARTMENT THEREOF ARE NOT PROPERTY CALIBRATED AND
SEALED BY THE NATIONAL SCIENCE AND TECHNOLOGY AUTHORITY
OR ANY OTHER GOVERNMENT AGENCY AUTHORIZED THEREFOR
[misrepresentation as to the quality and/or quantity; and sale by oil companies,
distributors and/or dealers violative of government rules and regulations].
“PETROLEUM FUEL PRODUCT ADULTERATION” – THE MIXING OF ANY
PETROLEUM PRODUCT WITH ANOTHER FINISHED OR UNFINISHED
PETROLEUM PRODUCT OR STOCK OR WITH ANY NON-PETROLEUM
SUBSTANCE OR MATERIAL THAT WILL RESULT IN PRODUCT QUALITY
CHANGE, OR RESULTING IN THE FAILURE OF SUCH FINISHED
PETROLEUM PRODUCT TO MEET THE REQUIRED PRODUCT
SPECIFICATIONS AS PRESCRIBED BY THE PRODUCTS STANDARDS
AGENCY OF THE MINISTRY OF TRADE AND INDUSTRY, FOR THE
PURPOSE OF THIS DEFINITION, FINISHED PETROLEUM PRODUCT REFERS
TO ANY OF THE FOLLOWING: PREMIUM GASOLINE, REGULAR
GASOLINE, AVIATION GASOLINE, AVIATION TURBO FUEL, KEROSENE,
DIESEL FUEL, INDUSTRIAL FUEL OR PACKAGE LUBE OILS. THIS
DEFINITION SHALL NOT APPLY TO ALCOGAS AND OIL EMULSIONS.
“UNDERFILLING OR UNDERDELIVERY” – REFERS TO A SALE, TRANSFER,

DELIVERY OR FILLING OF PETROLEUM PRODUCTS OF A QUANTITY
THAT IS ACTUALLY BEYOND AUTHORIZED LIMITS THAN THE
QUANTITY INDICATED OR REGISTERED ON THE METERING DEVICE OF
CONTAINER. THIS REFERS, AMONG OTHERS, TO THE QUANTITY OF
PETROLEUM RETAIL OUTLETS OR TO LIQUEFIED PETROLEUM GAS IN
CYLINDER OR TO LUBE OILS IN PACKAGES.
“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.
“overpricing” – The sale of petroleum and/or petroleum products at prices in excess of

those duly authorized by the [Government] Board of Energy.
“Misuse of allocation” – The sale, transfer or diversion of mandated petroleum fuel

allocation by oil companies, distributors, dealers or consumers contrary to the
declared intent of the Government in making such allocation.”
SEC. 3. The same Act is further amended by inserting between Sections three and
four thereof, a new Section which shall read as follows:
“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
PROCEEDINGS, 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 THE PUBLIC INTEREST. ADMINISTRATIVE
PROCEEDINGS SHALL BE DECIDED WITHIN THIRTY (30) DAYS AFTER
FILING OF THE LAST RESPONSIVE PLEADING BY THE RESPONDENT, OR
TERMINATION AND COMPLETION OF THE ADMINISTRATIVE
PROCEEDINGS.
“ALL LAW ENFORCEMENT AND OTHER CONCERNED AGENCIES OF THE

GOVERNMENT SHALL ASSIST THE BUREAU OF ENERGY UTILIZATION IN
THE IMPLEMENTATION OF THIS SECTION.
“THE ADMINISTRATIVE SANCTION THAT MAY BE IMPOSED SHALL BE

WITHOUT PREJUDICE TO THE FILING OF A CRIMINAL ACTION AS THE
CASE MAY WARRANT.”
SEC. 4. Section four of the same Act is amended to read as follows:
“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
(P20,000) but not more than [ten] FIFTY thousand pesos [(P50,000)], or
imprisonment of at least two (2) [months] YEARS but not more than [one (1)] 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 [and] 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 the 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.
“Trials of case arising this Act shall be terminated within thirty (30) days after
arraignment.
“When the offender is a corporation, partnership, or other juridical person, the

president, general manager, managing partner, or such other officer charged with the
management of the business affairs thereof, OR EMPLOYEE RESPONSIBLE FOR
THE VIOLATION, shall be criminally liable, IN CASE THE OFFENDER IS AN
ALIEN, HE SHALL BE SUBJECT TO DEPORTATION AFTER SERVING THE
SENTENCE.
“If the offender is a government official or employee, he shall be perpetually

disqualified from office.”
SEC. 5. All laws, decrees, orders, instructions, rules and regulations which are
inconsistent with, or contrary to, the provisions of this Act are hereby repealed or
modified accordingly.
SEC. 6. This Decree shall take effect upon its approval.

Done in the City of Manila, this 25th day of May in the year of Our Lord, nineteen
hundred and eighty-three.
(Sgd.) FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.) JUAN C. TUVERA

Presidential Executive Assistan

Presidential Decree No 1865

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Presidential Decree No. 1865, s.

Office of the President

PRESIDENTIAL DECREE NO. 1865

AMENDING BATAS PAMBANSA BLG. 33, ENTITLED “AN ACT DEFINING

WHEREAS, adulteration of finished petroleum products or possession of adulterated

WHEREAS, it is necessary to provide the implementing government agencies with

WHEREAS, in view of the foregoing considerations, it has become necessary to

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by

“(a) Illegal trading in petroleum and/or petroleum products;

“(b) ADULTERATION OF FURNISHED PETROLEUM PRODUCTS, OR

“(c) UNDERDELIVERY OR UNDERFILLING BEYOND AUTHORIZED LIMITS

“THE OIL COMPANY, PETROLEUM REFILLER, MARKETER, DEALER AND

“FOR THE PURPOSE OF THIS SUBPARAGRAPH, THE EXISTENCE OF THE

“1) THAT CYLINDERS CONTAINING LESS THAN THE REQUIRED

“2) IN THE CASE OF A DISPENSING PUMP IN A PETROLEUM PRODUCTS

“3) WHERE THE SEAL, WHETHER OFFICIAL OR OF THE OIL COMPANY,

“THE USE OF SUCH PUMPS, CYLINDERS OR CONTAINERS REFERRED TO

“[(b)] (D) Hoarding of petroleum and/or petroleum products;

“[(c)] (E) Overpricing in the sale of petroleum products;

“[(d)] (F) Misuse of petroleum allocations;

“Illegal trading in petroleum and/or petroleum products” –

“(A) THE SALE OR DISTRIBUTION OF PETROLEUM PRODUCTS [FOR

“(B) NON-ISSUANCE OF RECEIPTS BY LICENSES [TRADERS] OIL

“(C) REFILLING OF LIQUEFIED PETROLEUM GAS CYLINDERS WITHOUT

“(D) MARKING OR USING IN SUCH CYLINDERS A TARE WEIGHT OTHER

“(E) VIOLATION OF RULES AND REGULATIONS OF SAID BUREAU

“(F) REMOVAL OR UNLOADING OF PETROLEUM PRODUCTS FROM ANY

“(H) USE OF A TANK TRUCK, LORRY, HAULING VEHICLE, OR OTHER

“UNDERFILLING OR UNDERDELIVERY” – REFERS TO A SALE, TRANSFER,

“Hoarding” – The undue accumulation of a trader of petroleum and/or petroleum

“overpricing” – The sale of petroleum and/or petroleum products at prices in excess of

“Misuse of allocation” – The sale, transfer or diversion of mandated petroleum fuel

“SEC. 3-A. RULES AND REGULATIONS; ADMINISTRATIVE SANCTIONS

“THE BUREAU OF ENERGY UTILIZATION IS EMPOWERED TO IMPOSE IN

“ALL LAW ENFORCEMENT AND OTHER CONCERNED AGENCIES OF THE

“THE ADMINISTRATIVE SANCTION THAT MAY BE IMPOSED SHALL BE

SEC. 4. Section four of the same Act is amended to read as follows:

“When the offender is a corporation, partnership, or other juridical person, the

“If the offender is a government official or employee, he shall be perpetually

SEC. 6. This Decree shall take effect upon its approval.

(Sgd.) JUAN C. TUVERA

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