Cebu bizmen ask President to intervene on fuel prices

CEBU, Philippines - The Cebu Chamber of Commerce and Industry (CCCI) is asking President Gloria Arroyo to intervene on their behalf about the huge difference in fuel prices in Cebu and other parts of the country.

In a letter that was sent through Felix Guanzon, the presidential assistant for Central Visayas, the CCCI cited how Executive Order (EO) 839, freezing the prices of fuel in Luzon, has gravely affected businesses here.

The local businessmen contend that the fuel companies might try to recover their losses in Luzon here in the Visayas.

It has been noted that the prices of fuel here are more than P8 higher than those in Luzon.

The big oil players said that the price difference is due to the added transportation cost, which the Cebu leaders don’t accept as the prices of fuel in Mindanao are also relatively lower.

In fact, Cebu Governor Gwendolyn Garcia has filed a case against the “big 3” – Pilipinas Shell, Petron and Chevron.

The case filed by the governor was backed by the various business organizations here.

In this letter to the president, CCCI President Samuel Chioson appealed for the Mrs. Arroyo’s intervention since this has greatly been affecting Cebu residents especially their sector.

Chioson explained that there have been recent fuel price increases in Cebu including one that came after the president issued EO 839.

The order mandated a freeze in fuel prices in Luzon to help the people who have been badly affected by the string of typhoons.

Chioson said that while they understand the help that EO 839 could give those from Luzon, prices of fuel in Cebu went up by P2, which the CCCI president said gave them the impression that “Cebu is being made to bear the brunt of the alleged losses from the said price freeze.”

The high prices of fuel in Cebu was raised to the president’s attention during the April 2009 cabinet meeting in here, which was followed by the formal filing of complaint by Governor Garcia and supported by CCCI, the Mandaue City Chamber of Commerce, Filipino Business Chamber of Commerce and Lapu-Lapu City Business Chamber of Commerce.

Chioson, however, said in their letter that while the case is still being reviewed, there have been other rounds of fuel price hikes in the province.

“This further widens the gap between Metro Manila and Cebu prices by as much as P8.85 per liter for diesel as of today,” Chioson said.

In their letter, the CCCI showed a comparison of fuel prices in Cebu and Manila.

In Metro Manila, the common price based on the price monitor of the Department of Energy as of October 27 for diesel was at P28. But in Cebu, average of actual prices of Shell, Caltex and Petron was at P36.85.

Gasoline price in Metro Manila on the same period was at P36.41, but in Cebu the price was P45.19 for unleaded.

The CCCI said that “while the Big 3 oil companies have been unable to give a plausible explanation for the higher fuel prices in Cebu versus prices in the rest of the country, they continue imposing increases further disadvantaging Cebu business and the entire Cebu populace.” — AJ de la Torre/NLQ   (FREEMAN NEWS)