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Chapter 1 General Provisions
Article 1
The Petroleum Administration Act (henceforth the Act) is being instituted to promote the sound
development of the oil industry, to safeguard the production and sales of oil, to ensure the steady
supply of oil, to enhance people's livelihoods, and to develop the national economy while at the
same time give equal consideration to environmental protection.
Article 2
Definitions of terms used in the Act:
1. Oil: Refers to petroleum crude oil, bituminous crude oil, and petroleum products.
2. Petroleum crude oil: Refers to naturally occurring crude oil that is mixtures of hydrocarbon
compounds that contain mainly paraffin hydrocarbon, cycloparafin hydrocarbon, and aromatic
hydrocarbon.
3. Bituminous crude oil: Refers to crude oil extracted from bituminous minerals.
4. Petroleum products: Refers to products that are used primarily as energy and obtained from oil
through the process of distillation, refining, or blending or production with using hydrocarbon as
raw materials that designated by central competent authority. These include gasoline, diesel oil,
kerosene, naphtha, liquefied petroleum gas (LPG), jet fuel, and fuel oil.
5. Renewable oil products: It indicated the reusing materials that recycled from the domestic waste
or others according to the environmental protection law, after processing to produce the petroleum
materials and used as fuel.
6.Oil refinery: Refers to a business that uses oil as its raw material to engage in the manufacture of
petroleum products through the process of distillation, refining, or blending.
7. Gasoline station: Refers to a business place with an oil storage facility and metered fuel-servicing
equipment installed so that gasoline or diesel oil can be supplied for use in motor vehicles,
machinery, and other purposes.
8. LPG station: Refers to a business place with a gas storage facility and metered gas-servicing
equipment installed so that the built-in container of a vehicle can be filled with LPG.
9. Fishing boat filling station: Refers to a business place with an oil storage facility and flow meters
installed so that the built-in oil tank of a fishing boat can be filled with fuel.
10. Oil storage facility: Refers to a structure specifically for oil storage that has both a top lid and
walls and is situated either above or below ground. It must also have a use permit pursuant to the
provisions stipulated in the Building Law. For structures that do not fall under the provisions of the
Building Law where a use permit applies, the approval of the competent authorities that have
jurisdiction over the business is required.
11. Suppliers of LPG: Refers to oil refineries, oil importers, oil exporters, LPG stations, LPG
wholesale distribution industries, LPG packing industries, and LPG retailers.
12. LPG wholesale distribution industries: Refers to the industries wholesale LPG, which is
obtained from oil refineries and oil importers, to LPG packing industries.
13. LPG packing industries: Refers to the industries that have a gas storage facility and packing
equipments, filling gas into LPG gas cylinders.
14. LPG retailers: Refers to the sale of LPG cylinders to users.
The criteria for petroleum products mentioned in Items 1, 4, and 6 of the preceding paragraph will
be promulgated by the central competent authority after conferring with the agencies concerned.
Article 3
The competent authorities referred to in the Act are the Ministry of Economic Affairs on the central
level, the municipal governments on the special municipality level (Taipei and Kaohsuing), the
county, or city governments on the county or city levels.
Chapter 2 Oil Refining
Article 4
An oil refinery must be a limited liability corporation and meet the following requirements:
1.Have installed oil distillation, refining, and blending equipment.
2.Have installed or leased an oil storage facility which has a capacity greater than the security
stockpile prescribed in Article 24 herein.
Article 5
In order to set up an oil refinery, an establishment permit must be obtained from the central
competent authority. This entails submitting an application that states the following particulars:
1.Plant location along with the size of the distillation, refining, blending, and oil storage facilities as
well as the construction schedule and the plant completion date.
2.Principal products and the annual capacity for those products.
3.Two-year production and sales plan following the initiation of production.
This plan must include oil refining, import, export, sales, and storage plans.
4.Other items as promulgated by the central competent authority.
Article 6
After a business receives an establishment permit for an oil refinery, it must set up a separate
company or change its own registration. After doing one of these and then completing a trail run, the
business can apply for an operation license to refine oil. A business may not start refining oil until it
has been granted an operation license and can apply for one by submitting the following documents
to the central competent authority:
1.Company license.
2.Factory registration permit.
3.Documents verifying that the oil storage facility has the capacity to comply with the security
stockpile requirement as specified in Article 24 herein. If the facility is leased, lease documents
must be provided as evidence.
4.Other documents as required and promulgated by the central competent authority.
If after completing a trial run but before receiving the operation license, an oil refinery operator has
constructed or leased an oil storage facility that has a capacity greater than the required security
stockpile and it has submitted the documents specified in Item 3 of the preceding paragraph to the
central authorities, then the oil refinery operator may sell the petroleum products it produces
following the completion of the trial run, subject to the approval of the central competent authority.
However, the sale period is limited to six months, and the provisions specified in the first paragraph
of Article 17 apply hereto.
The aforesaid business must comply with the security stockpile requirement of an oil refinery
operator as specified in Article 24 herein.
Article 7
Before an oil refinery operator expands or reconstructs its distillation, refining, or blending facilities,
it must obtain the approval of the central competent authority. After completing the expansion or
reconstruction, the operator must apply to the central competent authority for a new oil refinery
operation license.
The provisions specified in Articles 5 and 6 apply to the application procedures mentioned in the
preceding paragraph.
Chapter 3 Import/Export
Article 8
An oil importer must be a limited liability corporation.
The aforesaid business must construct or lease an oil storage facility with a capacity exceeding the
security stockpile prescribed in Article 24 herein.
Article 9
Before importing oil, a business must submit an application to the central competent authority for an
establishment permit. This application must state the company name and location, scope of business
along with the name and domicile or residence of the person responsible for the business. An oil
storage plan as well as a sales or use plan must be attached.
Article 10
A business may not import oil until it has obtained an operation license from the central competent
authority to do so. A business must submit the following documents to apply for said operation
license:
1.Company license.
2.Documents verifying that the oil storage facility has the capacity to comply with the security
stockpile requirement as specified in Article 24 herein. If the facility is leased, lease documents
must be provided as evidence.
3.Other documents as required and promulgated by the central competent authority.
Article 11
The types of oil or petroleum products that can be imported by licensed importers are limited to
those approved by the central competent authority. The preceding provision does not apply to oil
refinery operators who obtained their operation licenses prior to the complete opening of the oil
market to imported products.
Article 12
Manufacturers of petrochemical feedstock may apply to the central competent authority for special
permission to import petroleum products for private use. The application submitted must state the
particulars listed below. In addition, a factory registration permit along with a business registration
permit and must be attached to the application.
1. The types and volume of petroleum products to be imported along with the planned use period for
them.
2. The production process.
3. The types, volume, and proportions of petrochemical materials to be produced.
4. The types, volume, and proportions of petroleum by-products to be produced.
5. The use status of the most recent petroleum products imported for private use, including import
types, volume, actual volume used, types and volume of petrochemical materials produced, types
and volume of petroleum by-products produced, and their actual export or sales.
The petroleum by-products produced by such a manufacturer must be either exported or purchased
by oil refinery operators.
The exporter of the aforesaid petroleum by-products must be properly registered in accordance with
Article 15 herein.
If the manufacturer mentioned in the first paragraph is in any of the situations described in either
Item 1 of the first paragraph of Article 45 or of Items 1, 2, 4, or 7 of Article 50 herein, the central
competent authority will withhold the approval of this manufacturer's application for six months
starting from the day after the penalty is imposed on the manufacturer.
An oil or non-oil business that imports petroleum grade solvent oil or lubricant must file a report
with the central competent authority within ten days of any importation. The report must state the
name and location of the principal business, the name and domicile or residence of its responsible
person, the types, quantity, and usage of the product imported. Imports by petrochemical enterprises
sanctioned by the industrial authority are exempt from this provision.
Article 13
If a business meets any of the conditions listed below, it may apply to the central competent
authority for special permission to import petroleum products. The application must include the
name and location of the principal business, the name and domicile or residence of the responsible
person, and types along with the volume of the petroleum products to be imported.
1.If an oil refinery operator needs oil for a trial run.
2.If a petrochemical feedstock manufacturer needs petroleum products for a trial run.
3.If an establishment needs oil for research and testing purposes.
4.If an establishment needs to import petroleum products for special applications that are either not
produced domestically and if products of similar specifications are not available domestically.
5.If an establishment needs to import less than one kilogram of a petroleum product (other than
gasoline or diesel oil) packed in a container.
Article 14
Crude oil imported by a licensed importer can only be supplied to the oil refinery as feedstock,
unless the crude oil is otherwise approved under special case status.
Naphtha imported by a licensed importer can only be supplied as feedstock to the oil refinery or
manufacturer of petrochemical feedstock, unless the naphtha is otherwise approved under special
case status.
Gasoline, diesel oil, or LPG suppliers as well as their customers may not supply their petroleum
products to following targets:
1. Gasoline stations or LPG station operators not set up according to this law.
2. Private gasoline, LPG filling or storage facilities not set up according to this law.
3. LPG wholesale distributors, packing companies, and retailers not set up according to this law.
Oil or non-oil businesses may not sell solvent oil, lubricant, or other volatile hydrocarbon
compounds as fuels for motor vehicles or machinery.
Article 15
To set up an oil export business, an application must be submitted to the central competent authority.
The application must state the name and location of the principal business, its scope of business, the
name and domicile or residence of the person responsible for the business. An export plan for the
business must be attached. A business is not allowed to start an oil export operation until its
application has been approved and a registration certificate issued by the central competent
authority.
Due to the unexpected accident in domestic oil market that resulted in the imbalance of oil supply or
any doubt of that, central competent authority then can restrict the oil exporter to export the oil.
As for the determination, restricted duration, conditions and methods of the imbalance of oil supply
or any doubt of that aforesaid shall be promulgated by the central competent authority, dissolve is
likewise.
Export of oil by a non-oil business for research and testing purposes should require the approval of
the central competent authority under special case status.
Article 15-1
Due to the unexpected accident in domestic oil market that resulted in the imbalance between oil
supply and demand or any doubt of that, the central competent authority can levy fees as a means to
raise the Petroleum Fund on oil exporters for their export of oil. The amount and period of the
aforesaid fees shall be promulgated by the central competent authority; dissolution is likewise.
Chapter 4 Administration of Sold
Article 16
Wholesalers of gasoline and diesel oil must be limited liability corporations.
To set up a gasoline or diesel oil wholesale business, an application must be submitted to the central
competent authority. The application must state the company name and location, its scope of
business, and the name and domicile of the person responsible for the business. The articles of
incorporation of the business as well as its sales plan must be attached to the application. The
business may begin operations only after it has obtained a registration certificate. The preceding
provision does not apply to licensed oil refinery operators or licensed importers.
Article 17
Retailers of gasoline, diesel oil, or LPG for vehicles must set up a gasoline station, a LPG station, or
a fishing boat filling station. This provision does not apply to oil refinery operators, importers, or
gasoline and diesel oil wholesalers who retail gasoline or diesel oil for private-use filling or storage
facilities or for non-vehicle use.
Operators of gasoline stations, LPG stations, or fishing boat filling stations must apply to the
competent authority of a special municipality, a county, or a city government for a construction
permit. Operators may begin operations only after their station facilities have passed an inspection
given by the competent authority of the special municipality, the county, or the city government that
the operators are located in and after acquiring an operation permit for the stations from the central
competent authority.
The central competent authority will stipulate rules and regulations on land use, installation and
facilities requirements, application formalities, issue and change of operation licenses as well as
other relevant administrative affairs for the aforesaid gasoline stations, LPG stations, and fishing
boat filling stations.
The central competent authority may authorize the competent authority of special municipality,
county, or city governments to administer the issuing and changing of the operation licenses or take
charge of other administrative affairs referred to in the preceding paragraph.
Gasoline station operators are required to join the local gasoline station commercial association.
Article 18
Passenger-cargo transport businesses, construction businesses, factories, or other entities that want
to set up gasoline (LPG) filling and storage facilities to supply their own vehicles or machinery
must apply for special permission from the competent authority of the special municipality, the
county, or the city government that the business is located in.
The central competent authority will stipulate rules and regulations on the installation and facilities
requirements, application formalities and other relevant administrative affairs for the aforesaid
gasoline (LPG) filling and storage facilities.
Article 19
Other than the gasoline, LPG, and fishing boat filling stations specified in Items 6 - 8 of the first
paragraph of Article 2 hereof, air terminals, commercial ports, or industrial ports may install fuel or
LPG storage and refilling facilities specifically for the refilling of aircraft, ground operation vehicles,
ships, or port machinery. The central competent authority will stipulate rules and regulations on the
installation and facilities requirements as well as application formalities, and other relevant
administrative affairs for these entities after conferring with the central competent authorities
Article 19-1
LPG distributors and packing companies must periodically report to their authoritative units their
supply and sale of LPG. LPG retailers must display information on source of gas and the retail price
in the business place.
LPG packing companies must fill the high pressure gas containers with LPG according to the
weight labeled. LPG retailers must ensure that the weight of the LPG is consistent with the label on
the container.
The central competent authority will stipulate laws on the supply and sale information to be reported
by LPG distributors and LPG packing companies. The information provided should include
preparation, contents, and formats. The central competent authority shall also determine the
acceptable range of error regarding LPG weight and the packing and filling of LPG, as well as the
methods of price displays and other regulations.
Article 20
The sources of petroleum products sold by gasoline stations, LPG stations, fishing boat filling
stations, and other sellers must be those legally imported or legally refined domestically.
The sources of oil purchased are limited to legal imports or those legally refined domestically.
Chapter 5 Oversight
Article 21
In the event of an oil shortage or a great fluctuation in oil prices that might impact the steady supply
of oil or national security, the central competent authority may institute measures on oil control,
such as quotas, price controls, and security stockpile adjustments and utilization.
To clarify these measures, the central competent authority will draft a bill on oil control in
emergency periods delineating the enforcement conditions, timing, procedures, applicable targets,
scope, contents, and methods. The bill will then be submitted to the Executive Yuan (Cabinet) for
final approval.
Article 22
All of the following businesses are required to obtain public liability insurance coverage and
accidental contamination liability insurance: oil refinery businesses, oil import businesses, oil export
businesses, gasoline and diesel oil wholesalers, gasoline stations, LPG stations, fishing boat filling
stations, oil or LPG storage and refilling facilities of air terminals, commercial ports, and industrial
ports as well as oil or LPG filling facilities installed for private use that meet the criteria set by the
central competent authority.
The central competent authority will decide how much insurance coverage each business must
obtain after conferring with the Ministry of Finance.
Article 23
Oil businesses are liable for damages caused by their production methods, import/export, sales,
transport, and storage of oil products as well as for other damages caused by business-related
activities.
Article 24
Oil refinery operators and importers are required to maintain an oil security stockpile of no less than
sixty days of supply. The supply amount will be based on the average domestic sales and private
consumption of the past twelve months. The security stockpile of LPG must amount to no less than
twenty-five days of supply. The supply amount will be based on the average domestic sales and
private consumption of the past twelve months.
The aforesaid security stockpile, oil refinery's total storage quantity must be no less than 50,000
kiloliters, and no less than 10,000 kiloliters for oil importers.
The government should make use of the Petroleum Fund to finance the storage of oil. The amount
stored shall be calculated according to thirty days of the average domestic sales and consumption of
the previous year.
The criteria and computation formulas for the actual security stockpiles referred to in the first
paragraph will be determined by the central competent authority.
Article 25
Where different oil refinery operators or importers share the same oil storage facility for their
security stockpile, they must file jointly with the central competent authority before the 20th of each
month indicating the amount each of them stores in the said facility. If the actual volume stored
jointly is lower than the total reported by the individual businesses, each individual business will be
deemed to have failed to meet its security stockpile requirement unless evidence proves which
business actually stored less than their required security stockpile amount.
Article 26
If an oil refinery operator or importer ceases operations, its storage of security stockpile may not be
disposed of without the prior consent of the central competent authority.
The central competent authority may draw on the Petroleum Fund (see Chapter 6 herein) to
purchase the aforesaid security stockpile.
Article 27
Before the end of October of each year, oil refinery operators must prepare and file with the central
competent authority an annual production, import, export, and sales plan for the following year.
Furthermore, before the 20th of each month they must file a report on the production, import, export,
and sales of the previous month as well as a report on the status of their security stockpile for the
current month.
The preceding paragraph also applies to oil importers, exporters, and gasoline/ diesel oil
wholesalers.
Article 28
The central competent authority may ask oil refinery operators, importers, exporters, and
gasoline/diesel oil wholesalers to report on their operations. The central competent authority may
also send personnel or entrust a professional institution conduct an inspection of the actual
operations, security stockpile, and relevant data of these businesses. A business may not obstruct,
refuse, or evade such inspection.
The central competent authority may ask the manufacturers of petrochemical feedstock to report on
their use of imported petroleum products. Or, the central competent authority may ask oil or non-oil
businesses to name who bought the solvent oil and/or lubricant products the businesses imported or
sold. Likewise, the central competent authority may send personnel or entrust a professional
institution to conduct an inspection on the same issues. A business may not obstruct, refuse, or
evade such inspection.
Competent authorities of different levels may ask gasoline, diesel oil, and LPG suppliers or their
customers to name who bought their products. They may also send personnel or entrust a
professional institution to conduct an inspection on the same issues. A business may not obstruct,
refuse, or evade such inspection.
Article 29
Only petroleum products that meet the national standards, where such standards apply, can be
imported or sold in the domestic market.
The central competent authority may send personnel or entrust a professional institution to examine
the quality of the petroleum products sold. A business may not obstruct, refuse, or evade such
examination.
Article 30
If the central competent authority revokes the license or registration certificate of an oil refinery
operator, importer, exporter, or gasoline/diesel oil wholesaler, that business is prohibited from
reapplying for another operation license or registration certificate within two years from the date of
revocation.
If the operation license of the operators of a gasoline station, a LPG station, or a fishing boat filling
station has been revoked, the original business body and its responsible person are prohibited from
reapplying to setup a filling station at the original site within two years from the date of revocation.
If the installation permit of an oil/LPG filling or storage facility for private use has been revoked,
the original site may not be used again for such a facility within two years from the date of
revocation.
Article 31
Where necessary, oil refinery operators or importers may lay pipelines using rivers, irrigation canals
and ditches, coastal areas, bridges, dikes, ports and harbors, roads, forest land, green land, parks,
and other public lands.
Laying the pipeline may not adversely affect the safety or landscape or the original use of the
premises on which the pipeline is laid. Before laying the pipeline, those who will do so, must get the
approval of the central competent authority and the agency in charge of the land. The operator or
importer must compensate for any damages incurred to the premises on which the pipeline is laid.
Oil refinery operators or importers who have oil pipelines may accept the request of other
businesses to transmit oil through those pipelines.
Article 32
Oil refinery operators or importers must observe the following requirements in laying oil pipelines:
1.The materials of the pipeline must conform to national standards or other comparable standards.
2.The business must immediately replace corroded pipelines that pose a safety concern.
3.The business must conduct periodic inspections of its oil pipelines each year and save the
inspection results for the competent authorities to review.
4.The competent authorities may send personnel or entrust a professional institution to conduct
inspections of the pipelines. The business may not refuse such inspection.
5.The business must draw up a pipeline maintenance, inspection, replacement, anti-burglary,
leak-proofing, and contingency plans for the following year before the end of October of each year.
Before the end of January of each year, it must also produce a report on the inspection and
replacement status of the pipeline for the previous year. This report must then be filed with the
competent authorities.
6.The business must submit its oil pipeline layout diagrams, final acceptance drawings, and other
relevant data to the competent authorities for the setup of a pipeline management information
system.
If an inspection of the pipeline shows that the corrosion of pipes poses a safety concern, the
competent authorities may demand that the business take remedial actions within a prescribed time
period.
Article 33
Oil businesses must apply to the competent authority of the special municipality, the county, or the
city government in which the business is located for permission to install oil storage facilities. The
central competent authority will prescribe the rules governing the application procedures, land uses,
requirements, and other administrative matters.
An oil business may ask an inspection institution sanctioned by the central competent authority to
conduct periodic or occasional inspections of the aforesaid oil storage facilities and to prepare
inspection records. The central competent authority may dispatch personnel or entrust an inspection
institution to conduct spot checks of said storage facilities.
An oil business must retain the aforesaid inspection records for at least five years. If deemed
necessary, the local competent authority of the special municipality, the county, or the city
government in which the business is located may dispatch personnel to check those inspection
records.
The central competent authority will stipulate the eligibility, requirements, fee schedule, and
responsibilities of the inspection institution referred to in the second paragraph of this Article.
Chapter 6 Petroleum Fund
Article 34
In order to finance the Petroleum Fund, the central competent authority will set and charge fees of
fixed rates from the following activities:
1.The exploration or import of oil with the exception of oil imported under the provisions stipulated
in the first paragraph of Article 12 and Items 2-4 of Article 13.
2.Petroleum by-products produced by petrochemical feedstock manufacturers and sold to oil
refinery operators in conjunction with the second paragraph of Article 12. The preceding provision
does not apply to the feedstock for any petrochemical products originally purchased from oil
refinery operators or importers.
The rates mentioned in the preceding paragraphs will be charged by volume and based on the
average import price of oil. The central competent authority will announce the amounts collected for
the fund.
Article 35
The Petroleum Fund will be financed with fees collected through the following methods:
1. Require oil importers to pay fees into the Petroleum Fund before importing oil.
2. Require oil explorers to pay fees into the Petroleum Fund before refining or selling the oil to oil
refinery operators.
3. Require petrochemical feedstock manufacturers that produce petroleum by-products to pay fees
into the Petroleum Fund before selling their products to oil refinery operators.
Oil refinery operators or importers who have paid fees into the Petroleum Fund as required under
Item 1 of the preceding paragraph may apply to the central competent authority for a refund of those
fees that apply to the same quantity of the oil originally imported if (1) the imported oil is used for
the manufacture of petrochemical feedstock, (2) the imported oil is later exported, or (3) the
imported oil is used as fuel for international shipping or international flights. Relevant documents of
proof must be included with the application.
Five years after the implementation of this law, the central competent authority will review the
practice of refunds for the exported oil described in the preceding paragraph and decide whether or
not to continue it.
Article 36
The Petroleum Fund will be used for the following purposes:
1.To maintain the government petroleum security stockpile.
2.To subsidize the set up of petroleum facilities in remote, aboriginal and offshore areas as well as
transportation outlays, and offer price subsidies.
3.To establish award of encouraging the exploration for and development of oil and natural gas
reserves with feedback mechanism.
4.To implement research and development, application and promotion on energy policy, oil
development technology, and alternative energies.
5.To make the security and reasonable effective use of oil ＆ gas（include LPG） as well as to
develop and promote the oil-saving technology and method.
6.Subsidy of rewarding the heat use of renewable energy to replace the petroleum energy.
7.Operation subsidy of a municipality, a county, or a city competent authority to implement the oil
management and the ban, inspection or auditing that stated in the first paragraph of Article 54 in this
Law.
8.To implement other necessary measures deemed necessary by the central competent authority to
stabilize the oil supply and maintain the oil market order.
The central competent authority reserves the right to adopt or maintain subsidies, subsidy targets,
and subsidy scope and any measures relating to the preceding subparagraph 2.
Article 37
（deleted）
Article 38
A business engaging in the production, import, blending, sales of alcohol gasoline, bio-diesel, or
renewable oil products must apply for prior approval of the central competent authority for
operating the business.
Other than petroleum products used for blending, rules related to the security stockpile and
Petroleum Fund do not apply to renewable energy sold by businesses operated according to the
provision specified in the preceding paragraph.
As the first paragraph mentioned, the central competent authority will stipulate measures for the
administration of businesses engaging in the production of the renewable energies of alcohol
gasoline, bio-diesel, or renewable oil products.
Article 38-1
The central competent authority can determine the fixed blending ratio of alcohol or ester to the
gasoline and diesel in accordance with the actual implementing schedule, scope and method for the
oil refinery and oil importer.
The aforesaid blending ratio of alcohol or ester to the gasoline and diesel, the actual implementing
schedule, scope and method shall be promulgated by the central competent authority.
Chapter 7 Penalty Provisions
Article 38-2
Anyone who engages in stealing, damaging, or using other unlawful means to jeopardize the proper
functioning of oil distillation, refining, and blending equipment of the oil refinery, or oil pipelines
and oil storage facilities of oil refinery and importer shall be sentenced to imprisonment for a term
of not less than 1 years and not more than 7 years, and may also be fined up to NT$ 10,000,000.
Those who commit the offenses specified in the preceding paragraph with the intent to harm
national security or social stability shall be sentenced to imprisonment for a term of not less than 3
years and not more than 10 years, and may also be fined up to NT$ 50,000,000.
If the offenses specified in the preceding two paragraphs result in disasters or impact the order of oil
production and sales, the punishment shall be increased by half; if the offenses result in death, the
offender shall be sentenced to life imprisonment or imprisonment for a term of not less than 7 years,
and may also be fined up to NT$ 100,000,000; if the offenses result in serious injury, the offender
shall be sentenced to imprisonment for a term of not less than 5 years and not more than 12 years,
and may also be fined up to NT$ 80,000,000.
Attempted offenses under paragraph 1 and 2 shall be subject to punishment.
Article 38-3
Anyone who, by any of the following methods, jeopardizes the proper functioning of the core
information and communication system of the facilities specified in paragraph 1 of the preceding
article shall be subject to imprisonment for a term of not less than 1 years and not more than 7 years,
and may also be fined up to NT$ 10,000,000:
1.Unjustifiably intrude into others’ computer or related equipment by entering others’ account
username and password, cracking computer security measures, or exploiting computer system
vulnerabilities.
2.Unjustifiably interferes with others’ computer or related equipment by using computer programs or
other electromagnetic methods.
3.Unjustifiably obtains, deletes, or alters electromagnetic records of others’ computer or related
equipment.
Producing computer programs specifically intended for committing the offenses specified in the
preceding paragraph and providing such programs to oneself or others for committing the offenses
specified in the preceding paragraph shall be subject to the same punishment.
Those who commit the offenses specified in the preceding two paragraphs with the intent to harm
national security or social stability shall be sentenced to imprisonment for a term of not less than 3
years and not more than 10 years, and may also be fined up to NT$ 50,000,000.
If the offenses specified in the preceding three paragraphs result in disasters or impact the order of
oil production and sales, the punishment shall be increased by half; if the offenses result in death,
the offender shall be sentenced to life imprisonment or imprisonment for a term of not less than 7
years, and may also be fined up to NT$ 100,000,000; if the offenses result in serious injury, the
offender shall be sentenced to imprisonment for a term of not less than 5 years and not more than 12
years, and may also be fined up to NT$ 80,000,000.
Attempted offenses under paragraph 1 to 3 shall be subject to punishment.
Article 39
A business in any of the following situations will be fined a minimum of NT$2,000,000 and a
maximum of NT$10,000,000:
1.In violation of the provisions specified in the first paragraph of Article 6 herein (i.e., failing to
obtain an oil refinery operation license while conducting oil distillation, refining, or blending other
than for the purpose of a trial run).
2.In violation of provisions specified in Article 10 herein (i.e., failing to obtain an oil import
operation license) and in violation of Articles 12 or 13 herein (i.e., failing to acquire a special permit
for oil imports) while conducting oil imports.
Oil distilled, refined, blended, or imported as described in the preceding paragraph will be
confiscated.
If any of the violations described in the first paragraph results in public endangerment, the offender
will be sentenced to a maximum of three years imprisonment or detention and/or be fined a
minimum of NT$1,000,000 and a maximum of NT$5,000,000.
If the offender of the preceding paragraph is a corporate person, its acting responsible person will be
punished and the corporate person itself will also be subjected to the fine prescribed in the
preceding paragraph.
Article 40
A business in any of the following situations shall be fined a minimum of NT$1,000,000 and a
maximum of NT$5,000,000:
1.In violation of the provisions specified in the second paragraph of Article 16 herein (i.e., engaging
in the gasoline or diesel oil wholesale business without registering with the competent authority).
2.In violation of provisions specified in the first or second paragraph of Article 17 herein (i.e.,
engaging in retailing of gasoline, diesel oil, or LPG for vehicle use).
3.In violation of provisions specified in the first paragraph of Article 18 (i.e., setting up an oil (LPG)
filling or storage facility for private use without first acquiring a permit).
4.In violation of provisions specified in the first paragraph of Article 33 (i.e., by failing to acquire
permission for the installation of an oil storage facility).
Petroleum products (for sale or private use), oil or LPG filling and storage facilities and other items
used in the violations of the preceding paragraph will be confiscated.
In the event any of the violations described in the first paragraph results in public endangerment, the
offender will be sentenced to a maximum of two years of imprisonment or detention and/or fined a
minimum of NT$600,000 and a maximum of NT$3,000,000.
In the event the offender mentioned in the preceding paragraph is a corporate person, its acting
responsible person will be punished and the corporate person itself will also be subjected to the fine
prescribed in the preceding paragraph.
Article 41
A business failing to store a security stockpile or failing to store the required amount as specified in
Article 24 herein will be fined a minimum of NT$2,000,000 and a maximum of NT$10,000,000.
Furthermore, the business will be ordered to take remedial actions by a prescribed deadline. Any
business failing to comply by the deadline will be penalized consecutively until satisfactory
corrective actions are taken. If the offense is of a serious nature (see Article 49 herein) or repeated
offenses against the some provision occur within six months after the business has taken remedial
actions, the business may be ordered to suspend operations for a maximum of three months or it
may have its operation license revoked.
Article 42
Offenders of the provisions stipulated in the bill on controlling oil in emergency periods as
described in the second paragraph of Article 21 herein and those failing to take the remedial actions
of the second paragraph of Article 32 herein by a prescribed deadline will be fined a minimum of
NT$2,000,000 and a maximum of NT$10,000,000. If the offense is of a serious nature (see Article
49 herein), the business may be ordered to suspend operations for a maximum three months, or it
may have its operation license revoked, or it may be ordered to close.
Article 43
A violation of the first paragraph of Article 26 herein (i.e., a business fails to obtain prior approval
for the disposal of their security stockpile) will result in the responsible person of the business being
fined a minimum of NT$1,000,000 and a maximum of NT$5,000,000.
Article 44
A licensed oil importer who violates Article 11 herein (i.e., importing types of oil not permitted for
import) will be fined a minimum of NT$1,000,000 and a maximum of NT$5,000,000. If the offense
is of a serious nature (see Article 49 herein), the business may be ordered to suspend operations for
a maximum three months, or it may have its operation license revoked.
Oil imported in violation of Article 11 will be confiscated.
Article 45
Any of the following offenses will result in a minimum fine of NT$1,000,000 and a maximum fine
of NT$5,000,000:
1. A petrochemical feedstock manufacturer violating the first paragraph of Article 12 herein (i.e.,
using imported petroleum products for purposes other than private use).
2. A violation of the third paragraph of Article 14 herein (i.e., supplying gasoline, diesel oil, or LPG
to gasoline or LPG filling operators that are known or should have been known to be running illegal
gasoline or LPG stations, or to illegal private oil or LPG filling or storage facilities).
3. An oil or non-oil business violating the fourth paragraph of Article 14 (i.e., selling solvent oil,
lubricants, or other volatile hydrocarbon compounds as fuels for motor vehicles and machinery).
Any petroleum products being used or to be used in the aforesaid offenses will be confiscated.
Article 46
Businesses importing or selling petroleum products that do not meet national standards as described
in the first paragraph of Article 29 herein will be fined a minimum of NT$200,000 and a maximum
of NT$1,000,000. Such businesses will also be ordered to take remedial actions by a prescribed
deadline. Any business failing to comply by the deadline will be fined consecutively until
satisfactory corrective actions are taken. If the offense is of a serious nature (see Article 49 herein)
or repeated offenses against the same provision occur within six months after the business has taken
remedial actions, the business may be ordered to suspend operations for a maximum of three
months or it may have its operation license revoked.
The aforesaid petroleum products that fail to be upgraded to national standards of quality will be
confiscated.
Article 47
Any of the following offenses will result in a minimum fine of NT$100,000 and a maximum fine of
NT$500,000. Furthermore, the offender will be ordered to take remedial actions by a prescribed
deadline. Any offender failing to comply by the deadline will be penalized consecutively until
satisfactory corrective actions are taken.
1. An oil refinery operator who in violation of the first paragraph of Article 7 herein does not obtain
prior approval or does not change its operation license before expanding or reconstructing its
distillation, refining, or blending facilities.
2. A violation of the first paragraph of Article 15 herein (i.e., exporting oil without registering with
the central competent authorities as an oil exporter).
3. Any business that engage in the gasoline station, LPG station or a fishing boat filling station
violated the regulations of third paragraph of Article 17 herein pertaining to related equipment
(facility) or operation management of setting up a gasoline station, a LPG station, or a fishing boat
filling station.
4. Any business that approved to set up oil or LPG filling or storage facilities for private use
violated the regulations of the second paragraph of Article 18 herein pertaining to the using
permit(s), equipment (facility) standard, reliability insurance or using management of setting up oil
or LPG filling or storage facilities for private use.
5. A violation of the related regulations of setup permit(s), using permit(s), equipment (facility)
standard(s), liability insurance, or using management that stated in Article 19 herein pertaining to
the rules governing the administration of fuel or LPG storage and refilling facilities at air terminals,
commercial ports, and industrial ports
6. A violation of the Article 19-1 herein. (i.e., LPG distributors, LPG packing companies, and LPG
retailers failing to report information of supply and sales of LPG, the preparation and filling of LPG,
the acceptable range of error on LPG weight, the display of retail price, and other regulations that
should be followed.)
7. A violation of the first paragraph of Article 22 herein (i.e., oil refinery business, oil import
business, oil export business, gasoline and diesel oil wholesalers, gasoline stations, LPG stations,
fishing boat filling stations, oil or LPG storage and refilling facilities of air terminals, commercial
ports, and industrial ports failing to obtain public liability insurance coverage and accidental
contamination liability insurance).
8. Oil or LPG filling or storage facilities installed for private use that meet the criteria set by the
central competent authority failing to obtain public liability insurance or accidental contamination
liability insurance as required by the first paragraph of Article 22 herein.
9. Not filing periodic reports as required by Article 27 herein or filing a false report.
10. A violation of any of the provisions specified in the first paragraph of Article 32 herein
pertaining to laying pipelines.
11. Any oil business that approved to set up the oil storage facility violated the rules governing the
setup of oil storage facilities as specified in the first paragraph of Article 33 herein pertaining to the
using permit(s), equipment (facility) standard or using management.
12. A violation of the measures for applying for the approval of operation as specified in the first
paragraph of Article 38, or in the third paragraph herein pertaining to the operation application, data
registration, quality standard, purpose restriction or other.
13. A violation of the blending ratio of alcohol and ester to gasoline and diesel, the actual
implementing schedule, scope and method as specified in the second paragraph of Article 38-1.
14. A violation of the fourth or tenth paragraphs of Article 52 herein (i.e., oil refinery operators
designated by the competent authority may not refuse to negotiate for the purchase of detained oil
products).
Furthermore, if a violation of Items 1, 3, 5, 6, 7, 9, 10, 12(posterior segment), 13, 14 is committed
and it is of a serious nature, the business may be or ordered to suspend operations for a maximum of
three months, it may have its operation license revoked, or it may be ordered to close down.
Moreover, if a violation of aforesaid Items 4, 8, or 11 occurs and it is of a serious nature, the violator
may be ordered to stop using its facility for a maximum of three months, it may be ordered to close
down, or terminate the permission(s) they had. Finally, if a violation of Items 2 or 12 (anterior
segment), the violator may be ordered to close down.
Article 48
Any of the following offenses will result in a fine of a minimum of NT$100,000 and a maximum of
NT$500,000. If a business commits an offense of a serious nature (see Article 49 herein), the
business may be ordered to suspend operations for a maximum three months, or it may have its
operation license revoked, or it may be ordered to close.
1.A violation of the first paragraph of Article 14 (i.e., supplying crude oil to businesses or
individuals that do not have permission to receive crude oil).
2.A violation of the second paragraph of Article 14 (i.e., supplying naphtha to businesses or
individuals that do not have permission to receive naphtha).
3.A violation of the first paragraph of Article 20 (i.e., selling oil illegally imported or illegally
refined domestically).
4.A violation of the first paragraph of Article 28 or the second paragraph of Article 29 (i.e., failing
to make business reports as required or obstructing, refusing, or evading an inspection by the
competent authorities).
Article 49
The offenses of a serious nature in Articles 41, 42, 44, and 46-48 are offenses specified in this Law
and in any of the following conditions:
1.An offense that results in public endangerment.
2.An offense evidenced by the facts as being unable to be rectified within ninety (90) days.
3.An offense that occurs three or more times in one year.
4.An offense that results in punishments six times or more cumulatively in one year.
5.Illegal producing, importing, or selling that involves more than 200 kiloliters of petroleum
products in a single incidence of offense.
Article 50
Any of the following offenses will result in a fine of a minimum of NT$100,000 and a maximum of
NT$500,000:
1.A violation of the second paragraph of Article 12 herein (i.e., selling petroleum by-products to
businesses or individuals other than oil refinery operators).
2.A violation of the third paragraph of Article 12 herein (i.e., failing to register to export oil with the
authorities concerned as required by Article 15 herein).
3.A violation of the fifth paragraph of Article 12 herein (i.e., failing to file in time or filing a false
report on the import of solvent oil or lubricants).
4.A violation of the second and third paragraphs of Article 28 herein (i.e., obstructing, refusing, or
evading an inspection).
5.A violation of the second paragraph of Article 33 herein (i.e., failing to ask an inspection
institution sanctioned by the central competent authority to conduct an inspection and to prepare
records) or a violation of the third paragraph of Article 33 herein (i.e., failing to keep the records for
a minimum of five years).
6.A violation of Item 2 of the first paragraph of Article 35 (i.e., producing oil or selling oil to oil
refinery operators without paying the required fees into the Petroleum Fund).
7.A violation of Item 3 of the first paragraph of Article 35 (i.e., selling petroleum by-products to oil
refinery operators without paying the required fees into the Petroleum Fund).
Article 51
Gasoline stations that do not join their local gasoline station commercial association (pursuant to the
fifth paragraph of Article 17) within one month after beginning business will be fined a minimum of
NT$20,000 and a maximum of NT$100,000.
Any offender of the preceding paragraph will be ordered to take remedial actions by a prescribed
deadline. Any gasoline station failing to comply by the deadline will be fined consecutively until
satisfactory corrective actions are taken.
Article 52
Where the detained oil has the risk of impairment or hard to safe keep, it may be sold to an
authority-designated oil refinery operator by price negotiations and can keep custody of the
proceeds. The oil refinery operator designated by the competent authority may not refuse such a
purchase request.
The measure for price negotiations of the aforesaid detained oil will be stipulated separately by the
central competent authority.
If the owner, trustee, or caretaker of the detained articles cannot be identified or notified, the
competent authority will make a public announcement of the detention and then process the
detained articles as waste if their owner, keeper, or custodian remain unidentified ten (10) days after
the announcement.
The competent authority may negotiate price for and then sell to a designated oil refinery operator
oil confiscated in accordance with this law. An oil refinery operator so designated may not refuse
the purchases price, which will be computed according to the Measure for Price Negotiations of
Detained Oil.
Article 53
The central competent authority will carry out those points of the Act that call for imposition of
fines, confiscation, demands of remedial actions within a prescribed time period, business
suspensions, revocations of a license/certificate, or the issuing of orders to cease business. But as of
an occurrences, following each item circumstances, a special municipality, a county, or a city
competent authority will take administrate disciplinary action.
1. The fines and/or carry out the confiscation for violations of Items 2-4 of the first paragraph, and
the second paragraph of Article 40.
2. According to Item 2 of the first paragraph of Article 45, fines should be imposed for a violation of
Item 3 of third paragraph of Article 14, and confiscation should be made for a violation of the
second paragraph of Article 45.
3. To impose the fines, carry out the demands for remedial actions by the prescribed deadline for
violations set forth in Items 3, 6, 7, of the first paragraph of Article 47 herein. (i.e., oil filling
stations, LPG filling stations, fishing boat filling stations failing to obtain public liability insurance
coverage. ), and to cease business, to order close business for a violation of the second paragraph of
Article 47.
4. To impose fines, carry out the demands for remedial action by prescribed deadlines for violations
of Items 4, 8, and 11 of the first paragraph of Article 47, and to cease business, to order close
business for violation of the second paragraph.
5. To impose the fines and carry out the demands of remedial actions set forth in Article 51.
A special municipality, a county, or a city competent authority will carry out inspections and execute
punishment(s) set in Article 46 herein that are to be imposed on gasoline or LPG stations for selling
petroleum products not complying with national standards. The applicable competent authority will
also carry out the punishment(s) on violations set out in Item 14 of the first paragraph of Article 47
herein.
Article 54
Competent authorities of different levels who have insufficient personnel and facilities, the risk of
resistances and public safety, or other reasonable cause, may ask for the assistance of local police or
other agencies in the execution of the following actions:
1. Seizing oil distillation, refinery, or blending operations that are in violation of the first paragraph
of Article 6 herein.
2. Seizing gasoline, diesel oil, or LPG and other petroleum products supplied to gasoline or LPG
station operators whose stations are not set up according to this law or to private-use gasoline or
LPG filling or storage facilities not set up according to this law, which are in violation of the third
paragraph of Article 14 herein.
3. Investigating the sale by oil or non-oil businesses of solvent oil, lubricants, or other volatile
hydrocarbon compounds as fuels for use by motor vehicles or machinery. All such sales are illegal
under the fourth paragraph of Article 14 herein.
4. Seizing wholesale operations for gasoline or diesel oil that are in violation of the second
paragraph of Article 16 herein.
5. Seizing retailing operations of gasoline, diesel oil, or LPG for vehicle use that are in violation of
the first or second paragraph of Article 17 herein.
6. Seizing oil or LPG filling or storage facilities for private use that are in violation of the first
paragraph of Article 18 herein.
7. Investigating sales of imported or sold solvent oil or lubricants pursuant to the second paragraph
of Article 28 herein.
8. Seizing oil storage facilities that are in violation of the first paragraph of Article 33 herein.
The informer(s) and law enforcement personnel involved in the aforesaid actions may be rewarded.
The central competent authority will stipulate measures for the reward.
Chapter 8 Supplemental Provisions
Article 55
Oil-related provisions in the Energy Management Law will no longer apply after this Petroleum
Administration Law (the Act) is implemented.
Article 56
The Act does not apply to the import and security stockpiling of oil or the set up of oil filling or
storage facilitates and their management by military establishments for national defense purposes.
Article 57
Prior to the enforcement of the amendment of this Law, any business that engaged in alcohol
gasoline, bio-diesel, or renewable oil products granted the permit(s) of establishment in accordance
with Article 38 will be regarded as already granted the valid approval of the production and sales for
alcohol gasoline, bio-diesel, or renewable oil products.
Article 58
The competent authorities of each level will charge review and license/certificate fees for
processing the applications for review, granting the permissions, and/or issuing the
licenses/certificates described in the Act. The central competent authority will set the fee schedule.
Article 59
The central competent authority will separately prescribe the forms and license formats required
under the Act.
Article 60
The Act will come into force upon promulgation.
The promulgation date of the amended article in this Act on January 6, 2009 should be provided by
the Executive Yuan.
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