DOE to probe higher gas prices in Bacolod
Bacolod City (27 October) -- Investigation in underway on the observed higher gasoline prices in Bacolod City after a resolution authored by Councilor Wilson Gamboa Jr. was submitted to the Department of Energy (DOE) for appropriate action.
In his reply, DOE Undersecretary Roy Kyamco said that since the Republic Act 8479 or the "Downstream Oil Industry Defegulation Act of 1998" was imposed, the prices gasoline and crude oil products were based on supply and demand and the price of crude oil in the international market.
He said the law has liberalized the downstream oil industry that promoted market competition " wherein the prices of petroleum products are governed and influenced by several factors/indicators such as the crude oil in he international market, the foreign exchange rate, spot prices and the interplay of market forces /conditions in a particular trading area."
"It is for this reason that prices may vary across locations as these are dictated by the market," Kyamko added.
He has endorsed the issue to concerned oil companies operating in the area of Bacolod City requesting asking them to submit written explanations on the price situation of oil here.
"Also we have directed our director for the Visayas field Office, Engr. Antonio Labios, to conduct a thorough assessment and evaluation of the price situation in your area," he said.
The gas price issue was spurred when Metro Bacolod Chamber of Commerce and Industry (MBCCI) Vice President for External Affairs Jose Maria Zayco questioned the fuel prices in Bacolod as being higher by P4-P6 per liter when Negros Occ. is close to Batangas where most companies get their fuel supply.
Surprisingly, gas prices in some cities in Mindanao are cheaper compared to Bacolod. (PIA-LOL) [top]