Bohol LGU may put up own gasoline stations to compete w/ private dealers and bring down prices

TAGBILARAN CITY, Philippines — The private gasoline dealers in Bohol might soon find themselves facing a formidable competitor, the provincial government itself if the latter pursues the proposal to put up its own gas stations around the province as a way of bringing down prices of petroleum products.

PB Member Tomas Abapo Jr., in his privilege speech during Friday's session, offered this bold plan to counter the uncontrolled high prices of fuel in the province by private dealers. His proposal is now under study at the Provincial Legal Office and the Provincial Planning and Development Office.

The private fuel dealers in this city have been controlling the petroleum prices, which are very much higher than in other cities and provinces in the region and outside the region, said Abapo.

"If we cannot lick them, why not join them. After all, economic enterprise by local government units is not prohibited especially if it is for the general welfare of the public," he said.

Vice Governor Concepcion Lim and PB Members Cesar Tomas Lopez, Dionisio Balite, Godofreda Tirol, Elpidio Jala, Madelone Rengel, Jovanna Jumamoy, PCL representative Antonio Ouano, Brigido Imboy and Benjie Arcamom who were present in the session, did not oppose to the Abapo plan of letting the Capitol put up its own gas pump stations and supply facilities.

If the local dealers were made to submit their report on fuel prices to the LGUs, Abapo said: “This can be easily concocted by them to defraud the public. They have the oil so they have the money, they have the money so they have the power. And when you have the power, the truth will be what you make it.”

In Bohol, there are already the so-called "independent players" that sells similar higher oil prices with the "Big 3 --- Shell, Caltex and Petron"-dealers unlike in other towns where their counterparts have been selling much lower prices.

Abapo, law school dean of a university here, cited provisions of the law that did not prohibit LGUs to go into economic venture, which include the oil trade or importation of refined petroleum products.

Abapo also cited the Republic Act 7160, or the Local Government Code of 1991, as basis for his proposal. He said every LGU shall exercise the powers expressly granted-implied, appropriate or incidental-for efficient and effected governance, and those that are essential to the promotion of the general welfare.

The provincial government may appropriate funds for this purpose, Abapo expound on his proposal, otherwise it may avail itself of the P300 million fund from PAGCOR in setting up gas stations. (FREEMAN)