Bill 428.

Summary.

The bill provides that the octane rating of liquid fuels sold at service stations must match the rating displayed on pumps and labels or stated in advertising and invoices. It calls for inspections to check octane ratings and compliance with the quality standards in the applicable technical regulation. It defines liquid fuel, octane rating, inspection, and service station. The Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), coordinating with the National Energy Secretariat (Secretaría Nacional de Energía) and the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia), would plan, coordinate, and carry out inspections at service stations and other fuel outlets. Inspections could be periodic, scheduled semiannually or annually; random, without prior notice; or extraordinary, following complaints, technical reports, or fuel quality incidents.

Inspectors would take representative samples for testing in accredited laboratories under applicable national and international standards and ASTM D4057 or a recognized equivalent. Sampling would cover pumps or storage tanks and include records of the batch number, advertised octane rating, date, time, and place. The inspector and a representative of the establishment would sign the sample labels. Each sample would be divided into three sealed containers: one for official testing, one retained as the establishment's counter-sample, and one for possible reference testing on appeal. Tests would check RON and MON octane ratings, sulfur content, density, physicochemical characteristics, and prohibited contaminants. Laboratories accredited by the National Energy Secretariat would use ASTM D2699 and ASTM D2700 to determine octane ratings and issue a technical report containing the results. The report would be sent to the Ministry of Commerce and Industries, the National Energy Secretariat, the Consumer Protection and Competition Defense Authority, and the Ministry of Health (Ministerio de Salud) within five (5) business days.

The inspecting authority would pay for sample analysis in periodic or random inspections; a reported establishment would pay if the complaint is substantiated. The National Energy Secretariat would maintain a National Register of Accredited Laboratories. The Consumer Protection and Competition Defense Authority could receive complaints and take part in inspections, oversight, and verification. Fuel that fails quality or advertised octane requirements, exceeds permitted sulfur content, or contains prohibited contaminants could lead to fines of B/.5,000.00 to B/.50,000.00, temporary suspension, or revocation of the sales license. The Ministry of Commerce and Industries would impose penalties in coordination with the National Energy Secretariat and with participation by the Consumer Protection and Competition Defense Authority and Ministry of Health, addressing violations provided for in Law 45 of 2007 (Ley 45 de 2007). The distributor or station would immediately remove the fuel and pay for safe disposal and replacement.

The coordinating authorities would publish details of sanctioned establishments on their websites for at least twelve (12) months, unless a final administrative or judicial decision revokes or changes the sanction. The Executive Branch (Órgano Ejecutivo) would issue regulations on procedures and penalties within six (6) months of promulgation; the proposed law would take effect upon promulgation. These provisions concern the named public authorities, laboratories, distributors, service stations, other fuel outlets, and fuel consumers.