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Opinion

Cebuanos are left to eat crap

AS IT APPEARS - Lorenzo Paradiang Jr. -

Buried in the inside pages was the concern of 1st District Rep. Eduardo “Eddiegul” R. Gullas of much higher LPG prices in Visayas and Mindanao compared to that in Manila. This also recalls the much higher per liter pump prices of gasoline in Cebu, also compared to that in Manila, and even in Mindanao. The difference is P5.00 to P6.00 per liter.

 On the liquefied petroleum gas (LPG), Rep. “Eddiegul” confirms that even in the budget hearing and also based on independent inquiry, as well as on the findings of the LPG Marketers Association (LPG-MA) and, by the findings of the Department of Energy (DOE) no less, the 11-kilogram cylinder LPG retail price in Manila is lower by P100 to that in Cebu, for one.

 Rep. Gullas puts the blame on the “lack of free and fair competition” in the LPG market. Apparently, the market is under the “monopoly” among the three giant companies – Petron Corp., Chevron Philippines (former Caltex Philippines), Shell Philippines – and the fourth which is Pryce Gases, Inc. Among them, it appears that Petron Corp. rules the roost. The small independent companies seem to be bulldozed silly, unless DOE or Congress levels the market playing field for them to compete fairly with the giant companies, especially Petron Corp.

 Obviously, the relevant retail price difference factors to be reckoned with are not the production costs per se. It could be the shipping and transport cost factors, and/or the higher labor costs in Manila; but then, computations can’t justify the gargantuan gap of P100.00 per 11-kilogram cylinder. Even P50.00 variance is still too high.

 On the almost antiquated complaint of Cebuanos and other Visayans on the gasoline pump price of P5.00 to P6.00 per liter higher than in Manila and Mindanao, the same is a “sleeping” issue that until now is unresolved, much less satisfactorily explained.

 Even DOE Secretary Rene Almendras, a Cebuano, when queried sometime ago in Cebu, failed to explain why and, did not also give assurance to rationalize the unfair practice. Imagine the ginormous difference of P5.00 to P6.00 per liter, not per barrel!

 With Mindanao and Manila having the same pump price, the factor of shipping or transport costs from Luzon, is no longer the reason. And so, what must be the real reason? And, why could not the DOE people, like Almendras, give a satisfactory explanation to the affected customers, his co-Cebuanos, no less? C’mon, it could not be a military secret.

  President Aquino has not touched on this issue. He is cavalier with his lovelife at almost every new “date”, but he has kept mum on the scandalous add-on to the Cebuanos. Appearing “tired” over the issue, he better wake up that “silence” for now doesn’t reveal the suffering Cebuanos deep in their hearts.

 What is inexplicable in the gasoline P5.00 to P6.00 per liter price gap is, why the small and independent players operating everywhere can afford to lower their pump prices by almost P2.00 per liter, compared to the giant oil retailers. Moreover, the scandalous pump prices, according to recent news revelations, is P9.00 more than what the reasonable price ought to be.

 Speaking of the President, it appears he feels no gratitude to the Cebuanos giving a landslide victory in the last elections. No Cebuano of Noynoy’s own Liberal Party has been honored with a high national position. Just an example, until lately, he was scouting for a Tourism Secretary, but the Palace never considered former Tourism Secretary Ace Durano who made good during his stint.

Overall then, adding the at least P5.00 per liter add-on, plus the P9.00 per liter over the true retail price ought to be, the Cebuanos are bilked silly to the tune of 14.00 per liter gasoline pump price. C’mon, Mr. President, where’s the sense of fairness and justice that your administration has openly touted as a basic policy?

CALTEX PHILIPPINES

CEBU

CEBUANOS

CHEVRON PHILIPPINES

LITER

PER

PETRON CORP

PRICE

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