“The public would want to know why retail gas prices in Baguio is almost nine pesos higher than in La Union”
BAGUIO’s gas pump prices are probably the most expensive in the country in relation to its source, the port of San Fernando which is only 60 kilometers away.
Prices are almost nine pesos higher than in La Union and this is not only scandalous but is so opportunistic that it must be stopped. It is one of the reasons why everything in the city cost a lot higher than elsewhere.
Why the local government as well as the national government cannot seem to do anything about it is a big mystery considering that there are available tools that the two can take to correct the situation if there is a will.
For instance, the Baguio local government could deal with them with business permits while the national government could question them for charging unreasonable and exorbitant prices.
The trouble is the Department of Energy which is supposed to be there to protect public interest like fairness in business practices seems to be protecting the interest of the oil companies and fuel retailers more by acting like the mouthpiece of these oil companies.
The Regional Officer of the DOE, for instance, in an attempt to give a reason why prices of gas are so high in the city gave a harebrain reason, saying it was because of the high prices of land in the city.
What a joke.
Now, the DOE has added real estate to its expertise as well.
Obviously, that particular official has never heard or is completely ignorant of transport economics to explain how to compute for transportation costs when bringing oil products from San Fernando to Baguio.
It is also a mystery why up till now, the national government has not seen it necessary to establish a Bureau of Transport Economic under the DOTr to take care of transportation research.
Yes, the volatility of gas prices are due to many factors like geopolitical tensions which can contribute to the upsurge of transport costs but there are also other elements at play to be fair to the riding public and the transport operators and drivers.
The way it is currently done here, however, is very arbitrary.
The LTFRB can simply agree or disagree to a ball park figure that transport groups are demanding like P1.00 per unit of distance in almost all cases.
The LTFRB cannot seem to figure out the exact amount to add to any increase in fares due to gas price increases in a scientific way and simply agree to the round figures demanded by transport groups.
An agency in transport economics, however, can equip the DOTr with scientific data to use every time there is a petition for an increase in fare and not rely on the harebrain analysis of ignorant DOE officials.
Yes, the DOE is not authorized to determine pump prices of fuel but it should stop being the mouthpiece of oil companies because the optics is not good in the eyes of the public.
Explaining the fluctuations of fuel prices is more the responsibility of the oil companies.
They should explain the reasons for the irrational price difference of gas pump prices of Baguio and La Union.
We, the public, would all want to know why retail gas prices in Baguio, a major tourist destination for both local and foreign tourists, is almost nine pesos higher than in La Union.
Is this an issue of gas retailers in the city taking advantage by charging exorbitant prices per liter or the oil companies charging more?
The DOE can certainly investigate this anomalous situation and find out why.
One does not have to be Einstein to figure out that it will not cost about nine pesos to transport a liter of gas from the Port of San Fernando to Baguio.
For a start, the government could simply check the freight cost of transporting the fuel then compare Baguio gas pump prices with other places that have the same distance from the port of San Fernando.
Will it cost more for instance to transport 5,000 liters of gasoline to Baguio and Rosario, La Union whose distances from the Port of San Fernando are more or less the same?
From there, it should be easy to determine a reasonable pump price which should be the main criteria – not arbitrary and scandalous pricing.
