Illegal Petrol Traders

Along with drugs and bootleg DVDs illegal gasoline trading plays a large role in the black market economy of the Philippines. Surely you have seen the roadside gas stations selling gas from Coca-Cola bottles. That is known as bote-bote gasoline. I have written about these bootleg gas stations before as well as illegal filling of improper gas containers. What is there new to tell about this situation? Nothing really except these absolutely crazy pictures I have of pump-boys helping the black market trade in gasoline continue.

Look at this guy in broad daylight. This gas station is downtown in a busy area but the illegal petrol dealer has no shame and the pump-boy has no hesitation in filling up his four huge containers with gasoline.

Obviously those aren't approved gasoline containers and even if they were who the needs that much gasoline for their own private consumption? Nobody. Where this guy lives that he has to drive into the middle of the city to fill up his tanks, I don't know.  But this other guy told me he drove from 2 hours away to fill up all of his 50 5 gallon tanks at 4am.

Take a look at how much he has spent so far at this point in the filling up process.

22,769 pesos and 461 liters! There must be more than 50 of those containers or they must hold more than 5 gallons. I did talk to this illegal petrol dealer buying the gas and he told me he is taking the gas to Sagay City to sell to boaters and motorcyclists. Sagay City is two hours away from Bacolod! Are gas prices really that different that he can make a profit driving two hours to fill-up?

Here's another 4am fill-up.

I do not know how many containers this guy had but he did tell me he was taking this gasoline to Silay City which is only 30 minutes away.

From the foregoing pictures of illegal petrol dealers caught in the action it goes without saying that this black market could never succeed if the gas stations did not cooperate. Of course there are signs posted at all gas stations telling customers only approved containers will be filled.

But when have rules ever stopped anyone in the Philippines from doing something illegal? Never. How many times have I actually been in a vehicle refilling and the driver did not shut off the engine? It's like every single time and the pump-boy never tells the driver to shut off the engine. I'm going out on a limb here but the the pump-boys are a large part of the problem of illegal petrol trading.

Of course there are other hindrances to stopping this black market. To be sure the Department of Energy has said several times over the years that they are going to crack down on this practice. They even drew up a memorandum in 2003 with guidelines for gasoline retailers.  Here is the pertinent section.

Section 5. FUEL STORAGE, HANDLING, TRANSFER AND/OR DISPENSING 

The storage, handling, transfer and/or dispensing of Liquid Petroleum Products shall be subject to the following:

1. Liquid Petroleum Products shall be transferred only from underground tanks by means of fixed pumps designed and equipped to allow the control of the flow and prevent leakage or accidental discharge;
   
   
2. Liquid Petroleum Products shall not be dispensed from above -ground tanks, portable tanks, tank vehicles, drums, barrels or similar containers, e.g. bote-bote, into the fuel tanks of motor vehicles or containers;
   
   
3. The product suction lines of storage tanks shall be elevated at least four (4) inches from the bottom of the tank to avoid water draw-off with the product;
   
   
4. The discharge of Liquid Petroleum Products into or upon any street, highway, drainage canal or ditch, storm drain or flood control channel, lake or tidal waterway, or upon the ground shall be strictly prohibited.

https://www.doe.gov.ph/sites/default/files/pdf/issuances/dc_2003-11-010.pdf

The DOE has guidelines in place but they are worthless because they have no enforcement mechanism and are reliant on the Bureau of Fire Protection and LGU's but both are stymied by red tape.

https://news.mb.com.ph/2017/08/30/govt-cant-stop-illegal-sale-of-fuel/

Government appears to be helpless in curbing the illegal sale of fuel by small retailers. 

This was the impression that came about at a meeting called by the 14th Sangguniang Panlungsod’s Committee on Public Safety on a proposed ordinance regulating the retail of liquid petroleum products. 

While government agencies have been trying to stop the illegal practice of selling fuel by the bottle, unclear mandates and legal loopholes have made it difficult to enforce the law, despite clear provisions that only gasoline stations are authorized to sell petroleum products. 

For example, only the Bureau of Fire Protection (BFP) can inspect small neighborhood stores suspected of selling fuel. But based on the experience of Insp. Anthony de Paz, acting city fire marshal, they can be charged with trespassing even if they have an inspection order. 

BFP officials also cannot make arrests. While fire personnel can confiscate fuel stored in soda bottles and displayed in the sari-sari stores, this is only in theory. 

This is because the Fire Code of the Philippines allows dwelling units to store combustible and flammable liquids for a maximum of 94 liters. 

BFP also cannot invoke the Fire Code provision that fuels must be placed in an approved container since the Department of Energy (DOE) has not come out with an approved standard container. The most that BFP inspectors can do is recommend the appropriate storing of petroleum products. 

This leaves the job of catching illegal retailers to the police, but it would require a search warrant. But a warrant is not enough as sari-sari stores often deny selling fuel and claim the products were just being stocked for the owner’s personal consumption.

That article from 2017 deserved to be quote in full to show you just how much red tape is involved in something as simple as enforcing the law against selling illegal gasoline. The BFP is the only organisation which can investigate stores accused of selling illegal gasoline but they can be charged with trespassing for doing so. Neither the BFP nor the DOE have "come out with an approved standard container." The PNP could get a warrant but then small stores could claim the gas is for their own consumption.

All this red tape and these loopholes are madness! No laws will ever be enforced in the Philippines except at the barrel of a gun. People don't want the laws enforced even if they are for their own safety. Do you think that's a exaggeration? Take a look at the following.

https://cebudailynews.inquirer.net/212865/pilar-exec-asks-doe-for-a-moratorium-on-arrest-of-illegal-petro-traders

The municipal government of Pilar on Camotes Island has asked the Department of Energy (DOE) for a  moratorium in apprehending townsfolk who sell fuel contained in one-liter soda bottles. 

Pilar Mayor Eufracio Maratas told Cebu Daily News Digital that he sent a letter to Energy Secretary Alfonso Cusi  asking him to consider the absence of a gasoline station in their locality and be a little lenient in implementing the law on illegal petroleum trade.

The letter was sent through the Office of the Presidential Assistant for the Visayas (OPAV) on January 4, said Maratas. 

“Bisan until April lang kay naa na man diri sa Cawit nga magtukod og gasoline station. Nag process na man sa ilang documents. In fact, naa na man ang ilang permit. Ang pagconstruct na lang ang kulang,” Maratas told CDN Digital by phone on Thursday. 

In the past weeks, residents and officials of Pilar have complained that the town police,  led by Chief Inspector Roy Susvilla, have been strictly implementing the ban on the retailing of petroleum products, which badly affected the livelihood of many townsfolk,  especially that they need fuel to keep their businesses moving. 

On Thursday, January 17,  a team from the Department of Energy in Central Visayas (DOE-7) met with  Maratas and the town police. 

DOE-7 Legal Officer Russ Mark Gamallo, in a separate interview, said they had to explain the necessity of implementing the law even if  there is no gasoline station on the island. 

“Di nato pwedeng kalimtan nga duna tay balaod nga angay sundon ug ipatuman para pud sa kaayohan sa tanan,” Gamallo said. 

Under Presidential Decree 1865, the transport, sale and distribution of adulterated petroleum products is prohibited and punishable by two to five years of imprisonment and/or a fine ranging from P20,000 to P50,000. 

Adulterated petroleum products include those fuel contained in one-liter softdrink bottles, which are sold in Pilar, or those butane canisters filled with Liquefied Petroleum Gas (LPG). 

Gamallo said they committed to help in prioritizing the approval of the remaining documents of the firm that is putting up a gas station in Pilar. 

Maratas, on the other hand, said they also promised that as soon as  the gas station is  operational,  they will help in strictly implementing the law.

This article reads like a joke. The townspeople are complaining that the police have been enforcing the law and cracking down on illegal petrol dealing which badly affects their livelihood! Oh no someone cried, let's throw out the law! Who cares if butane canisters filled with gasoline are dangerous!?

How did the illegal gas get to that island anyway?

Just build a petrol station!