The Department of Energy yesterday called on oil companies to bring down the prices of fuel in Negros Occidental that are from P4.50 to P5 a liter  higher than in the National Capital Region, and to increase  the number of their “PNoy Lanes” that grant discounts on diesel for all public transport  vehicles.

DOE Undersecretary Jose Layug Jr. said he  conducted an unannounced inspection of  prices at gasoline stations in Bacolod City yesterday, following reports that fuel in Negros Occidental was selling   P8 a liter higher  than in Metro Manila.

“We  did not find an P8 price difference,  it   was between P4.50 to P5 a liter, which is consistent with other areas in the Visayas,” he said.

“We conducted the inspections because we want to make sure that there is no abuse in the market,” he said

Layug also  met with  public utility drivers and operators in Bacolod City  yesterday afternoon who asked that the prices of fuel in Negros Occidental be made at par with the National Capital Region.

“We asked the oil  companies today to submit to us an explanation on the price difference,” he said, adding that he expects  their answers by next week.

Before we can take any action, we need to know what their basis is for the P4.50 to P5 price difference, he said.

“What I cannot determine at this point is whether the P5 is justifiable,” he said.

The oil companies have  granted P1 per liter  discounts on diesel sold to all public utility vehicles through “PNoy Lanes” in gasoline stations in selected areas in the National Capital Region, Layug also said.

 Layug said that during his inspections in Bacolod he noticed that few gasoline stations were granting diesel discounts. “I will talk to the fuel companies  to increase their stations granting discounts,”  he said.

They also noticed that the pump prices in almost all gasoline stations in Bacolod were the same, unlike in NCR where prices differ because of competition from the different  oil companies, he said.

“We need to ask them the basis of their pricing in Bacolod and why is there no differentiation among the different oil companies,” he added.

”If ever we will consider  legal action we need to make sure that we have sufficient basis to question the pricing, such as unfair competition and anti trust behavior, ” he said.

Meanwhile, Layug said  government regulation of fuel prices is not possible at this point. Regulation will have to consider the ability of government to subsidize price differences, which it cannot afford anymore, he added.

More independent players in the market in the future  will hopefully provide the competition to help  bring down prices, he said.

Layug said  their expectations early this week were that with the crisis in Egypt resolved, China increasing its interest rates, and the  Organization of the Petroleum Exporting Countries hiking  production by 1 percent in January, world prices of fuel would go down.

However, “I was told there are problems in Yemen and Iran and I’m not sure how that will impact on the market,” he added.

Layug said he is going around the country to determine the  prevailing fuel prices and problems in other areas, too.

But Bacolod was one of the first areas that the DOE  looked into because of the numerous complaints they have received from the area, he added.

The Cebu government also has a pending case against the oil companies for  higher prices of fuel in their area, he said.

He also inspected the gasoline stations in Bacolod  yesterday to determine if they were complying with required standards for safety purposes, Layug said.

Negros Occidental Gov. Alfredo Marañon yesterday said the DOE can really bring down the fuel rates in Negros Occidental.*CPG

back to top