BAGUIO CITY, June 22 (PIA) - - The Department of Energy, in response to the request of the City Government of Baguio, conducted a consultation meeting with oil retailers to look into the concern of higher prices of oil products in the City compared to the other parts of North Luzon.
DOE Oil Industry Management Bureau Director Rino Abad and Luzon Field Office OIC Reynaldo Liganor spearheaded the consultation at El Cielito Inn last June 14 that was attended by local retailers of Petron, Caltex, Shell, Clean Fuel, among others.
Mayor Mauricio Domogan and Councilors Benny Bomogao, Michael Lawana and Leandro Yangot were also present to air the city government’s side on the issue.
Abad presented the current market situation on the supply and demand of petroleum products in the country particularly in the northern part of the country.
Based on May 31 data, the price per liter of gasoline in Baguio was higher by an average of P8 – P10 compared to other parts of northern Luzon.
The supply cost of per liter of gasoline from Poro Point on that date was P47.66 and this includes the landed value of imported petroleum, excise tax, VAT, tariff and ethanol, though the actual pump price of each gasoline station is based on the add – on “industry take” of the retailers which usually covers the cost of transportation of the supply, contraction cost and the cost of doing business.
May 31 data showed that pump price of gasoline in Baguio was P65.95/liter compared to P56.78 in San Fernando, La Union; P55.05 in Cagayan; P56.35 in San Fernando, Pampanga; P55.20 in Vigan, Ilocos Sur and P54.14 in Urdaneta, Pangasinan.
Abad explained that DOE has no control over the cost of imported petroleum and oil, other tax or charges that is provided by law, thus this “industry take” is what we are trying to look into, for retailers to identify or unbundle what fee or charge composes it.
Through the effort of Baguio Representative Mark Go, there is a move in Congress to look into how prices of petroleum products can be lowered. If DOE will have a detailed breakdown of the industry intake part of the cost of petroleum products, it will help a lot, Abad added.
Domogan had said that while it is understood that there are many factors that affect the prices of oil, oil companies have taken advantage of the Oil Deregulation Law. (JDP/CCD-PIA CAR)