Indie oil firms entering Bohol; possible cartel monitored

TAGBILARAN CITY, Philippines —  The entry of independent oil players in Bohol has been seen to spur a close competition that would bring down the prices of petroleum products in the province.

Governor Edgar Chatto however warned that it would be useless if the independent oil companies that are coming in would only connive with each other and the existing Big Three, only to end up in a cartel eventually.

The governor confirmed that some mayors already informed him that a number of oil companies had expressed interest to open outlets in their towns and were already scouting for suitable sites for their depot.

Chatto said he advised the mayors to be investor-friendly and assist the oil companies so that there would be new players coming in. The existing oil dealers whom he had talked also welcome the newcomers, he said.

Fil Oil is already here and Total continued to scout for a site of its depot, especially in the ports outside of the city.

Chatto however said these new players should have a mechanism to avoid conniving with other companies that would only result in the buildup of a cartel.

It has been observed that even local dealers of Caltex, one of the Big Three, is now dropping its price by P1 per liter compared to other gas stations at the height of successive rollbacks. Then, upon the first spike right after the two rollbacks, they maintained lower prices by at least 50 centavos per liter.

Chatto said he was coordinating with the DTI-7, through regional director Aster Caberte, for a continuing monitoring of the prices of petroleum products here, especially on the disparity of the prices with other areas.

The case of high prices of fuel here was already raised to the Regional Development Council. — (FREEMAN)