Absence of competition reason for fuel price high in EV

TACLOBAN CITY – The absence of price war or competition is the reason why fuel price in the region is much higher than those in Metro Manila and Cebu. So said Department of Energy, Oil Industry Management Bureau Director Zenaida Monsada during the Multi-Sectoral Advocacy Campaign on the Downstream Oil Industry (DOI) held in this province during the first downstream oil industry forum held for the three Visayan Regions by the DOE. Fuel price in the region is about P5 higher than those in Metro Manila and Cebu. Even if there are clamors to reduce prices of gas and other petroleum products to include oil and lubricant as they are market driven, the DOE official said that they cannot do anything on it as there is a low demand in the region due to slow economic development. Slow economic development is caused by few investors coming to the region particularly new oil players that could cause competitions. “In areas where there are several numbers of oil players their prices are low to attract more customers which is the effect of price wars,” Monsada said, adding that they cannot do anything on problems like high price rate in other areas due to Oil Deregulation Law which affects the downstream oil industry. She added that what the DOE can only do right now is to ensure that there is a fair price in the market that is really competitive. Aside from the problem on competition, fuel price in local market is also affected by the contract price in the global market which they cannot regulate. Antonio Labios, DOE director in the Visayas during the Strengthening Public Education Appreciation and Knowledge on Energy (SPEAK-Energy), said that the DOE will not intervene in price adjustment especially if it entails with the increase of gas or fuel prices since their office is not privy in fixing prices but is left to the discretion of independent oil players. He, however, assured the consuming public that the price adjustment of the independent oil players add to the prevailing selling price are only reasonable and will not result in the increase of prime commodities. He added that in case it cannot assure or control the increase of prime commodities due to price adjustment, the government will take necessary preventive measures to mitigate its impacts on the consuming public by providing subsidy to the public utility vehicle or bus to ensure that the prevailing fare will remain.