DOE says disparity of oil prices expected in the region

DAVAO CITY, March 31 (PIA) – Department of Energy XI Regional Director Nilo Geroche explained that disparity of oil prices is expected in the region given several reasons. This he shared during the One Davao Virtual Presser yesterday (March 30).

“The source of supply would matter and would definitely affect the price of oil. Here in the city, we are lucky that we have many petroleum products facilities. But in areas like island cities and municipalities, we really expect that price is higher in those areas due to transport and howling cost.”

The DOE official also mentioned that intense market competition in Region XI would somehow keep the price increase lower as compared to areas where petroleum gas giants and small players are limited in number.

Geroche bared that gas station companies, no matter a giant or just a small player, are still adamant of adopting the big-time oil price increase.

“The reason for this is that the people are now very sensitive as to comparing the price of oil from on station to another. In fact, we noticed last week that some stations did not immediately apply the P12/liter increase. Instead, some companies started with just half of the increase.”

The official, however, shared that some stations passed on the impact of the oil price increase to the customers as they incurred adjustments in their operating cost.

“We continue to explain that the DOE has no hand in fixing the price of petroleum products. Instead, we may accept complaints or concerns of the public about abuse of oil prices and facilitate to forward it to the Philippine Competition Commission.”

The DOE, along with other government offices, thru the instruction of President Rodrigo Roa-Duterte immediately came up with short term measures to address the oil price increase.

One measure mentioned is the constant coordination with oil companies for promotional programs that extend fuel discounts to the public transport sector.

Another action implemented is the P500 million fuel discount program for farmers and fisherfolks as well as the P2.5 billion Pantawid Pasada Program of the Land Transportation Franchising and Regulatory Board.

The DOE is also committed to continue strict monitoring to ensure supply sufficiency, quality maintenance, and consumer welfare protection. (PIA XI/FGM)

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