MikeLigalig.com

BOHOL dug an ace in its negotiations to bring down to the bargaining table oil companies that have been perceived to be dictating the fuel prices in the region.

At the threat of bringing the issue of high fuel costs in the Central Visayas to the Regional Development Council and get negative publicity blows, major oil companies representatives buckled and bargained with the consent to allow independent fuel players to enter Bohol and offered to make available in Bohol an affordable fuel brand for agriculture, fisheries and public transport sectors.

Bohol through Governor Edgar Chatto recently met with the big three companies upon the invitation of the Department of Energy, Trade and Industry as well as major stakeholders.

The meeting was to probe for ways to level-off the price of fuel, which has been reportedly high in the Visayas compared to other areas.

Cebu, through Governor Gwendolyn Garcia for example has reportedly questioned major oil companies on the noted high distribution price for fuel and oil in the Visayas.

Gov. Chatto also said that Negros Oriental and Siquijor have also similar problems, one that could legitimize the issue as a topic for RDC intervention.

“Region 7 agreed as the entire central visayas is affected,” Chatto said after admitting telephone conferences with Negros Oriental, Suquijor and Cebu leaders.

“In our meeting last week with the major oil players, we got that international pricing and foreign exchange rates factor in pricing oil,” Chatto told media during his weekly radio program.

But even then, with sea transportation costs and land delivery rates factored, it was found out that Visayas, which is much closer to Luzon have higher prices, the Bohol governor hinted.

According to him, “to implement urgent measures, major oil players have agreed to the opening of Bohol for distribution by independent players other that Shell, Caltex and Petron.”

He also broke the news that a program signed in Manila recently would make Petron open up Pinoy Gas, a more affordable gasoline formulation for public utility vehicles, bancas and farm equipment.

Reports said the Petron Pinoy Gasoline is cheaper by P3 a liter compared to regular gasoline, perhaps the solution to the plea of transport groups and other sectors currently burdened by the high cost of fuels.

“PinoyGas however would not be available until 4 months to a year from now,” Chatto said.

To this, independent player Total Oil, who happened to be at the meeting also said they can put up a similarly priced fuel in less the time, Chatto said.

Chatto explained that the opening up for independent players would help bring the prices down by disrupting the monopolies which the major players have apparently made here.

Chatto also wanted to know why Ubay and Talibon distributors can offer their fuel at lower costs compared to Tagbilaran, putting in the general speculation that there is an apparent price fixing syndicate among the major players and distributors. (racPIABohol)

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=37127.0