It took an explosion in Mindoro over the weekend for the Department of Energy (DOE) to take a second look at the practice of fuel retailing of Technology-Solution Retail Outlets (TSROs).
The Philippine Institute of Petroleum (PIP) welcomed the DOE’s move to review technical and safety policies governing TSROs after a TSRO in Calapan exploded last Sunday while receiving fuel from a tanker.
The PIP cited local reports that the explosion severely damaged adjacent residential properties and establishments.
A TSRO is defined by the DOE as a type of retail outlet that is regulated by the government to address the fuel requirements of unconventional technologies and modes of transportation in areas currently served by the illegal trade of petroleum products sold in glass bottles.
Under the DOE’s Department Circular No. DC2017-11-0011, TSROs are only allowed to store a maximum of 2,000 liters of fuel products in a petroleum compatible plastic type material.
“We thank the DOE for heeding our call to look at and review existing regulations governing the TSROs given the risks that some of these types of retail outlets, which may be non-compliant to DOE’s rules, pose to the general public. We commit to DOE our full support for its thorough assessment of TSROs operating in the country,” the PIP said.
Among the issues raised by the group against TSROs are permitting, facility standards, health and safety and tax compliance.
“We are also concerned that while the objective of allowing TSROs is to provide fuel access to areas otherwise being served by illegal bote-bote, some of these small retail outlets are located in areas where regular service stations are already operating,” the PIP added.
The group also said TSROs have been proliferating in the rural areas with more than 150 outlets recorded in Oriental Mindoro and Mimaropa as well as in Western Visayas.
The DOE said TSROs are not exempt from safety, technical, and other documentary requirements of local government units and national agencies like the Bureau of Fire Protection, Department of Interior and Local Government and the Department of Environment and Natural Resources.
The agency said that in particular, TSRO operators, dealers and owners are mandated to secure a certificate of compliance before engaging in the retail of liquid fuels.
PIP members include Chevron Philippines Inc., Isla LPG Corp., Petron Corp., Pilipinas Shell Petroleum Corp., PTT Philippines Corp. and Total Philippines Corp.
