Government – Private Sector Partnership Private Sector Perspective 2-1 Philippine Scenario: Government – Private Sector Partnership Private Sector Perspective Ms. Mercedita Pastrana Executive Director, LPG Industry Association, Inc. Philippines World LPG Association Forum October 7-8, 2009, Rio de Janeiro, Brazil 1

Philippines and the LPG Industry LPG Cylinder Industry** BULK SUPPLIERS REFINERS IMPORTERS SUPPLIERS MANUFACTURERS TRADERS REFILLERS INDEPENDENTS SERVICE ENTITIES REPAIRERS REQUALIFIERS MARKETERS DEALERS RETAIL OUTLETS VISAYAS MINDANAO LUZON *Under DOE supervision **Under DTI supervision

Profile of the LPG Private Sector

LPG Associations LPG Industry Players Refillers : LPGRA, CLPGR Marketers : LPGMA, PhilGas Dealers : ILDAP, FLPDA LPG Cylinder Industry : PALCMI Umbrella PLPGA LPGIP PIP LPGIA 4

The Liquified Petroleum Gas Industry Association, Inc The Liquified Petroleum Gas Industry Association, Inc. (LPGIA) was formed in 2000

4 out of the 6 bulk importers are members of the LPGIA Petron Petronas Shell Philippine Assn. of LPG Cylinder Manufacturers Total There are now over 200 refilling plants nationwide. Petron, Shell, and Caltex operates 28 refilling facilities while new players and independent refillers operates over 170 refilling plants nationwide with about 150 here in Luzon. There are eight bulk suppliers serving the domestic LPG requirement: Petron, Shell, Caltex, Total, Nation, Liquigaz, Petronas and Pryce 4 out of the 6 bulk importers are members of the LPGIA

The LPGIA: Has 4 out of the 6 bulk importers as members. Members contribute .01 centavo/kg of importation and produced LPG. Is the largest industry association in terms of membership and resources in the LPG industry Is recognized as one of the major industry associations in the country.

The primary purpose of the LPGIA is to support the Government in creating a safe and healthy environment in the LPG Industry. Discuss background on LPGIA (refer to the slide)

LPG Task Force Flowchart Director, OIMB Executive Director, LPGIA LPG Inspection Team DOE Staff LPGIA Staff Now expanded to include DTI

to the Problems in the LPG Industry Responses of the LPGIA to the Problems in the LPG Industry Discuss background on LPGIA (refer to the slide)

Teacher-Student Support Module Consumer Education Response Teacher-Student Support Module The LPGIA developed and produced, in cooperation with the Department of Education and the Department of Trade and Industry, the Teacher-Student Support Module to be used to instruct all junior and senior high school students on LPG use and safety in all public schools nationwide.

2. Konsumer at Iba Pa Radio Program Consumer Education Response 2. Konsumer at Iba Pa Radio Program The LPGIA sponsored a national radio talk show segment on LPG safety and LPG cylinders, together with the Department of Trade and Industry and the Philippine Product Safety and Quality Federation.

Consumer Education Response 3. Newspaper Ads 2 Serial Comics on consumer safety and buying tips Newspaper Ads To support/advocate passage of LPG Bills Other printed materials (leaflets, flyers, bookmark)s 6. TV/Cinema Ads Featuring DOE/DTI officials

7. Information Education Campaign Consumer Education Response 7. Information Education Campaign LPGIA has conducted various Education/ Information campaign on all sectors of the LPG Industry including law enforces, government officials units, Bureau of Fires and Consumer on safe use of LPG and other safety tips.

Legislative Responses Discuss background on LPGIA (refer to the slide)

The LPG Bill 3 years ago, the LPGIA spearheaded the drafting of the LPG Bill to serve as the magna carta for the entire LPG industry.

The LPG Bill The LPG Bill was passed in the House of Representatives in March 2009 and is now on 1st reading in the Senate. It is a priority bill of the government and there’s a good chance it will be signed into law this year.

The LPG Bill Some of the main features of the Bill are: It clearly defines cylinder ownership and the responsibility of the owners to the consumers. It bans importation of second-hand cylinders. Strengthened the regulatory powers of the government agencies. Increase in penalties.

Promotion of Orderly and Safe LPG Business

Auto-LPG Summit The LPGIA organized and funded the 1st and 2nd National Auto-LPG Summit in 2007 and 2008 which brought together many of the major industry players in the auto-LPG industry. Its purpose was to promote an expanded and safer use of auto-LPG in the country.

Good Industry Practice Workshop The LPGIA organized, in partnership with the World LPG Association, the Good Industry Practice Worksop for the government and the private sector in April 2009.

Some Problems Still Lessened but still very rampant illegal practices Too many industry associations Slow wheel of justice Inefficiencies in government operations Uncoordinated efforts/overlaps of government Personal security of LPGIA members

? What Can Be Done? RA 8479 Oil Deregulation Law Industry Self-Regulation National Association

Thank you! 24