Gwen sues major oil firms

Governor Gwendolyn Garcia on Thursday personally filed the complaint against the three major oil companies in the country at the Department of Energy-Department of Justice (DOE-DOJ) Task Force on Oil Deregulation in line with the higher prices of fuel in Cebu compared to Metro Manila and even in some parts of Mindanao.

Garcia veered away from her busy schedule  and flew to Manila to file the official complaint that charges Pilipinas Shell, Petron, and Chevron of cartelization, preatory pricing and unreasonable price increases at the DOE-DOJ Task Force on Oil Deregulation.

The DOE-DOJ Task Force on Oil Deregulation is mandated by law to file criminal and administrative charges against those that may be found liable in so far as the selling and the pricing of oil are concerned.

The case will cite violation of the Oil Deregulation Act which come with a fine of P250,000 to P500,000 and two-year jail terms.

The filing of charges was arrived at after the three oil companies failed to give satisfactory explanations on why fuel cost per liter is higher in Cebu than in any other parts of the country in a meeting last Monday with Garcia and the business community in Cebu.

Garcia said the charges, which also include the various chambers of commerce in Cebu and PhilExport as complainants, will hopefully open the books of the three oil companies for scrutiny.

The issue on the disparity of fuel prices was raised during the meeting of the Phil-Export Cebu and the Cebu Chamber of Commerce and Industry (CCCI) with President Gloria Macapagal-Arroyo last week.  The exporters and businessmen complained that prices of fuel here are higher compared to other places.

President Arroyo asked Energy Secretary Angelo Reyes for clarification on the issue but Gov. Garcia, who also attended the meeting, said no clear answer was given and the discussion on the issue was even prolonged.

“I told the President that I will take care of the issue in our level,” said Garcia.

During last Monday’s meeting, Pilipinas Shell Petroleum Corporation Vice President Roberto S. Kanapi said that prices are always affected by what is happening in the world market since more than 95 percent of petroleum products are imported.

“Prices are set depending on the benchmarks, outcome of exchange rates and difference in the components of distribution costs,” Kanapi said.

Kanapi assured that their pricing strategies have not changed and that the prevailing price in Cebu is at its normal level, saying that they do not have control over small players that can afford to sell their products at a lower price.

But Garcia argued that the distribution cost could not be used as a reason since Cebu is nearer than Mindanao, which posted nearly the same price as that in Manila.

“There is an injustice being committed to the people of Cebu. We have to get to the bottom of this,” said Garcia.

Garcia said the filing of the complaint would find out if there is any injustice behind the price difference of petroleum products sold in Cebu and other parts of the country.

From the comparative price watch conducted by provincial technical personnel, it was found out that the prevailing price of diesel sold in Manila by Shell, Petron and Chevron is P25.25 per liter compared to P31.56 in Cebu.

The price of unleaded gasoline of the three major oil companies is pegged at P31.75 per liter in Manila compared to P39.44 in Cebu. LPG, likewise, has a unit price of P18.25 in Manila while it is sold in Cebu at P24.03.

The price difference ranged from almost P6 to P8 which can be computed to P400 additional fuel expenses for Cebu drivers who consume at least 70 liters a day, said CCCI President Samuel L. Chioson. #