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Dumaguete City, PhilippinesFriday, March 16, 2012
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ON  NON STOP OIL PRICE HIKE
‘Giant oil firms dictate price’

Gasoline station dealers in Dumaguete City said the City Council is “barking up at the wrong tree” in inviting them to the regular session Wednesday to shed light on the increase in the prices of petroleum products.

Michael Nemenzo of DSR Petron said pump prices in Dumaguete and Negros Oriental are dictated by area sales executives of giant oil companies such as Shell, Petron and Caltex and they have to follow their directives even if sent via text messages.

He also raised the issue of Shell and Caltex having the same price as Petron when their source is the Amlan depot in Negros Oriental, while theirs is in Bacolod City in Negros Occidental.

Nemenzo said that, for gasoline dealers, the farther they are from the depot, the more expensive their fuel will be, considering the hauling cost, freight, cost of labor and other expenses.

This is why fuel prices of Petron outlets in Bayawan City, which is more than 90 kilometers south of Dumaguete, are higher than Petron fuel prices in Dumaguete, he added.

Unnamed gasoline dealers said that even if their present stocks are purchased at a low price, they are bound to increase them when dictated by their area sales supervisors.

Councilor Antonio Remollo, who requested the appearance of the dealers before the Council, said that some retailers close shop early in the day to take advantage of an impending increase of fuel prices the following day. He said he considers this as technical hoarding of fuel products.

Councilor Joe Kenneth Arbas stressed the need to form a body or a committee to study the problem.*PNA

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