DOE probe team arriving in Negros Occ: Capitol eyes class suit vs oil firms for fuel price disparity

BACOLOD CITY, Philippines — A class suit against oil companies is being planned by the Negros Occidental provincial government, as a recourse to lessen the disparity of fuel prices in Bacolod City and this province compared to those in nearby cities and provinces.

"We are studying what case to file but it will be multi-sectoral where all interested sectors can join and it will be led by Governor Alfredo Marañon Jr.," said Jose Ma. Valencia, the governor's chief of staff,

Valencia said they are looking at the possible violation of the oil firms of the implementing rules and regulations of the Oil Deregulation Law. "There seems to be a 'cartelization' in prices locally because why should they have the same prices if there is competition," he said.

City's lone district Rep. Evelio Leonardia said the disparity goes as high as P10 per liter. "We cannot just ignore its impact on local business," he said.

Leonarida said the DOE is sending a team to Bacolod on Sept. 11 to investigate on the case, as promised to him by Energy Secretary Jericho Petilla in Manila last week.

Petilla, in a separate interview, said the DOE team will be going around Bacolod City and other areas in Negros Occidental where disparity is being reported.

Leonardia, named member of the congressional committee on energy, had interpellated Petilla on the matter, saying this needs to be addressed as soon as possible, without even elaborating on its impact on businesses and ordinary people, like the jeepney drivers. "If you come down to it, this is really snatching away income from our drivers," he said.

The coming of the DOE probe team to Bacolod "is the fastest route to address the problem," said Leonardia. "Let's wait for the results of this study," he said. "To be sure, I will not stop until this problem is solved," he assured Negrenses.

"A congressional inquiry may be needed for long-term solutions, but let us first see if there is something the executive can do immediately. Our goal is to solve this in the fastest possible time," he said, adding that he was optimistic Petilla will do something about it.

Negros Occidental 3rd District Rep. Alfredo Benitez, for his part, said he will study the case to be filed by the provincial government.

Last week, Benitez filed a bill creating a Visayan watchdog to monitor the huge disparity in the prices of fuel among the cities in the region, which has reportedly been going since 2010.

He also filed House Resolution 179 urging the DOE to create an independent oil price watchdog in the Visayas region, in response to growing complaints against the oil price disparity between Negros Occidental and other areas.

The main task of the watchdog "is to investigate the cause of high disparity of prices of fuel not only in the province of Negros Occidental but also in other key cities and provinces in the Visayas Region," he said. 

The fuel prices in Bacolod City and Negros Occidental are higher by more than P8 per liter compared to Manila, and by more than P10 per liter compared to Cebu City, Benitez said in the resolution.

Benitez said the House committee on energy, on August 19, 2011, conducted a public hearing on the cause of high prices of fuel in Negros Occidental, but despite its efforts, the oil pricing situation in Negros Occidental remained the same.

Aside from investigating on the cause of price disparity between Visayas and that of Metro Manila, the proposed watchdog shall also come up with proposed policy interventions to address unfair competition and pricing of fuel products in the region, Benitez added. (FREEMAN)