The “burning†issue regarding the alleged high prices of fuel in Bohol, discussed in a forum Tuesday, revealed inside information as why prices keep rising.
Antonio Labios, Department of Energy (DOE) Director for its Visayas Field Office, came over in behalf of DOE Secretary Jose Rene Almendras, to personally hear from the participants their of points of view and reactions to certain issues, especially the allegations that oil prices in Bohol are significantly higher than those of other regions, and sometimes, even in Metro Manila; and that oil supplies from their mother units en route to depots are often delayed which spark up our oil prices.
The meeting was presided over by no less than Bohol Provincial Governor Edgar M. Chatto with representatives of prime oil players in the province like Petron, Shell and Caltex, whose mother stations get their supply from Pandacan; and even one from Total, who said that they import their oil supply from France through Singapore.
Labios said that there are two basic factors which affect the country’s oil prices; namely, the prices of oil products in the world market and the dollar-peso exchange rate.
However, he added the business environment in a particular area and the volume levels of supply and demand as additional factors in the changes of oil prices, the latter being the price determinant of the final fuel prices in the market called the Suggested Retail Price (SRP).
The BIG 3
Servando “Butch†Abaya of Caltex/Chevron informed Chatto and the rest of the group that the usual practice of the Big Three, that is, Caltex, Shell and Petron, is that it is their respective head offices that give them their respective SRPs and that they are also given the “guaranteed mark-up†by their mother units regardless of price fluctuations.
Adding to this, the Big Three are also in concurrence that they’re being given a so-called “price protection†in that old stocks may be withdrawn within 24 hours after a price roll back or else the price difference would become a dealer’s burden.
Local issues also popped up during the discussions on the alleged local feud of warring families engaged in cutthroat competition in Ubay town and smuggled oil products entering the province through our ports in Ubay and Loon which were pinpointed as possible causes of oil price discrepancies.
The issues on high oil prices, arrival delays and fuel smuggling “resurrect†every time there is an advice on oil price hike coming from Manila due to the simultaneous increase in prices of oil products in the world market which greatly affect the 60 branded oil companies currently operating in the province.
SMUGGLING
These smuggled oil produce manage to evade taxes and are being sold by “generic†local companies, of which eight are in Bohol, direct to the public at sometimes lower prices, which has caused damage to a number of vehicles because these products do not meet the Philippine National Standard of quality to be used as fuel for our various means of transportation as mandated by the DOE.
Aster Caberte, Department of Trade and Industry (DTI) Director for Region 7, suggested that as part of the body’s policy recommendations, talks at company level should be exhausted first to give oil players the chance to air their side regarding these boggling issues.
New oil players, representatives from the Philippine Ports Authority (PPA), the Philippine Coastguard, municipal mayors of coastal towns allegedly used as entry points of smuggled fuel and others who are being affected by this dilemma and other key players would be invited to attend a meeting on January 14 of next year, most possibly with the Provincial Price Coordinating Council with Gov. Chatto sitting as Chair, to discuss price and quality issues of which all would be advised to be at level-playing fields so that all would be fair for everybody concerned and that baffling and intriguing issues would be settled.
Chatto is adamant on his stand that “the people should be given their due when it comes to service.†(jlv/EDCom)
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