Go presses oil price talks
BAGUIO City Representative Marquez Go will continue to question the fuel price disparity between Baguio City and San Fernando, La Union after a major upsurge in oil prices hit the city last week.
Prices shot up to as high as P67.00 per liter of gasoline with a disparity of P5.00 to P10.00 on oil prices in Baguio compared to La Union. A petition to hike by 65% jeepney fare filed by groups to cope with the rising price adjustments.
Go said “Several committee investigations have been conducted on this issue for the major oil companies to clarify and address the issue on this oil prices disparity. We have pleaded so many times to them to re-
duce their fuel prices since the start of the investigation on October last year.”
Oil companies are bent on maintaining a justification behind the high price of fuel in Baguio which pushed Go to file the Bill.
"While we are waiting for another round of investigation, hoping that it would be the last, I have filed House Bill No. 7352 last March 7, 2018 seeking to amend RA 8479 or the Oil Deregulation Act, empowering the Department of Energy to monitor the pump prices of fuel and to set a price ceiling and maximum rate of increases, which marks a year after I filed House Resolution 853.”
Go filed House Resolution No. 853 on March 7, 2017 directing the House Committee on Energy to conduct an investigation on the disparity and overpricing of fuel prices in Northern Luzon particularly in Baguio City.
In the midst of the proposed 65% increase in jeepney fare, Go assured that dialog with the DOTr and LTFRB “Definitely, talks with the DOTr/ LTFRB will be pushed to further study and review the proposed fare hike as it would have a great impact to our people in Baguio City that would eventually affect their families’ income and expenditures.”
In its recent 'E Power' Northern Luzon caravan in Baguio City, the Department of Energy explained the process of computing the price of fuel.
DoE stated the disparity in fuel price between Poro point in La Union with that of Baguio City is based on the P25.00 international price import content, P7.00 excise tax, P6.00 value added tax all amounting to P38.00 minus P60.00, the remaining P22.00 is now identified as the industry take.
The DOE said another factor to consider is that Baguio City consumes only 1 to 2 percent of the Northern Luzon demand for fuel distributed by re-sellers aside from not having its own depot, import terminal, and a refinery.
Baguio City Mayor Mauricio Domogan was alarmed by the high fuel price have asked the City Legal Office to study the possibility of filing cases against those involved in the unabated price increase in fuel costs in the city.