DOE execs: No fuel overpricing in Negros Or.

DUMAGUETE CITY , Philippines   â€” An official of the Department of Energy (DOE) has assured the public there is no overpricing of fuel prices in this capital city of Negros Oriental.

DOE-7 regional director Antonio Labios made this statement during a recent forum here, saying this was based on the monitoring conducted by the DOE's oil price division.

Labios, assistant director Rodel Romero of the Oil Industry Management Bureau, DOE lawyer Angelito Agoncillo and technical experts were in the city Thursday for a multi-sectoral advocacy campaign on the Downstream Oil Industry, which aims to ensure that retailers and other key players in the oil industry comply with quality and quantity standards.

In an interview, Labios said fuel prices in the city and other parts of Negros Oriental were still within the reasonable range of oil companies.

Local officals however believed that the prices of gasoline, diesel and other petroleum products in the province have been overpriced as opposed to those in other areas such as Cebu City and Metro Manila.

Fuel prices in Dumaguete and other parts of Negros Oriental were higher by as much as P1 or more per liter than in other larger areas, but DOE officials countered that this disparity in prices was largely attributed to the absence of depots in Negros Oriental and the cost of transporting fuel from Cebu or Bacolod City where gas tankers originate.

Labios had urged the public to report possible violations of gasoline dealers and retailers to the DOE-Department of Justice task force.

Romero, for his part, said the difference in fuel prices was due to a number of market forces, including handling costs from the source down to the end users and the so-called economies of scale where it is cheaper when you buy in big volumes just like in Cebu.

The DOE officials also explained the increase or decrease of fuel prices is dictated by prices of the raw material abroad and the exchange rate. This means that, even without deregulation, prices of fuel will still go up. 

In recent months, about 30 gasoline refilling stations in Dumaguete have sprouted, perceived by many as due to the growing population as well as the higher retail prices locally compared with other areas. Romero however said that this was not an assurance that prices of gasoline and other petroleum products will decrease.

The DOE meanwhile warned LPG dealers and retailers of petroleum products against under-delivery. A hands-on calibration of dispensing pumps was witnessed by LPG and retailers of gasoline products to prevent consumers from being shortchanged, violations of which would mean a fine of at least P10,000 per pump. 

In the event of  underdelivery, refilling stations are required to coordinate with the LGU concerned for the calibration of the pump with representatives from the municipal or city treasurer's office allowed to put the lead seal on the pump, tampering of which would mean another violation.

On oil smuggling, Romero said it is not the concern of the DOE but of  the Bureau of  Customs.  (FREEMAN)