INVESTIGATION in underway on the observed higher gasoline prices in Bacolod City after a resolution authored by Councilor Wilson Gamboa Jr. was submitted to the Department of Energy (DOE) for appropriate action.
In his reply, DOE Undersecretary Roy Kyamko said since Republic Act 8479 or the “Downstream Oil Industry Deregulation Act of 1998” was imposed, prices of gasoline and crude oil products were based on supply and demand and the price of crude oil in the international market.
He said the law has liberalized the downstream oil industry that promoted market competition “wherein the prices of petroleum products are governed and influenced by several factors/indicators such as the crude oil in the international market, the foreign exchange rate, spot prices and the interplay of market forces /conditions in a particular trading area.”
“It is for this reason that prices may vary across locations as these are dictated by the market,” Kyamko added.
He said he has endorsed the issue to concerned oil companies operating in Bacolod City, asking them to submit written explanations on the price situation of oil here.
“Also, we have directed our director for the Visayas Field Office, Engr. Antonio Labios, to conduct a thorough assessment and evaluation of the price situation in your area,” he told Gamboa.
In Kyamko’s letter dated September 24, 2009 addressed to Jim Meymink, country chairman of Chevron; Edgar Chua, chairman and president of Pilipinas Shell; Glenn Yu, president and CEO of Seaoil; and Eric Recto, president of Petron, it states: “We are endorsing the letter and resolutions to your office for your appropriate assessment and evaluation.”
He asked the office to submit the assessment and evaluation of said oil companies within 15 days after receipt of his letter.
The gas price issue was spurred when Metro Bacolod Chamber of Commerce and Industry (MBCCI) Vice President for External Affairs Jose Maria Zayco questioned why fuel price in Bacolod is higher by P4-P6 per liter when Negros Occidental is close to Batangas where most companies get their fuel supply.
Gas prices in some cities in Mindanao are cheaper compared to Bacolod.
Why? What's in Bacolod?
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