Thursday, 17 March 2022 02:46

Congressmen approve reform of the Petroleum Products Regulatory Law

Written by Evelyn Alas

With 62 votes in favor, the deputies of the Legislative Assembly approved the reform of the Law Regulating the Deposit, Transportation and Distribution of Petroleum Products, in order to establish the universal filling system for gas drums, regulate and oversee the import and export, storage, transportation and commercialization of such products.

The modification of the regulation, which was created on december 23, 1970, will promote free competition through universal filling, which will make it possible for users to choose freely from which company they want to acquire the product.

The approval seeks to establish an updated regulatory framework that guarantees consumers access to this type of products. At the same time, it establishes the safety conditions that the cylinders must comply with in order to avoid accidents.

The traceability of the gas cylinders will be ensured through the placement of tamper-proof seals by each company, which will constitute a guarantee and support for the consumer regarding the weight, quality and safety of each cylinder, which will be the responsibility of a specific company.

This equitable system unifies the use of a single valve in the cylinders so that it is accessible to any consumer. In addition, it provides a better availability of products at national level, according to studies carried out by the competent institutions in this area, such as the Hydrocarbons and Mines Directorate of the Ministerio de Economía(MINEC). Also, anti-competitive practices, such as hoarding of gas cylinders, will be left behind. Some companies adopt this action to harm competition.

The advantages of universal filling

Among the main advantages of the system to be implemented is that the cylinders can be filled by any of the companies in the system of common use containers, despite the existence of a brand differentiation.