Operating a gas station is thought to be a big business these days. That is the logical justification to the sprouting of gasoline stations all over the City.
As of last count, there are 27 gas stations in Dumaguete — a City where there were only 22 stations last year. And more stations are a-coming.
Operating a gas station may be the easiest businesses to go into these days. Provided you have a strategically-located land, gas companies will offer to build you a station entirely at their own expense, give you the management of the business, and pay you at least P1.50 for every liter sold.
And it is in part because of the sprouting of gas stations in the City that the people’s curiosity has been aroused by the price of fuel in Dumaguete and Negros Oriental. It has been a burning issue these past days, weeks and months.
Unleaded gasoline, for instance, which is being sold in Dumaguete for more about P62 per liter can be bought in Talisay, Cebu for only P52 or P53.
On the surface, it suggests that Dumaguete gas stations are overpricing their merchandise. And because of this possibility, many people are angry at the oil companies for holding the consuming public hostage to their pricing whims.
What gives? Is someone overpricing, or is the other underpricing?
Petron Corp., the only fuel company represented in a City Council inquiry last Wednesday, said their prices are justifiable. In fact, their representative said the price difference between Bacolod and Cebu for diesel fuel is only 17 centavos, a figure Councilor Dan Leon computed was “way below” the transport cost.
Department of Energy Regional Director Engr. Antonio Labios said that based on their weekly monitoring activities, they do not consider the Dumaguete fuel prices as overpriced. He admitted he has heard of reports of rampant fuel smuggling, but there has been no confirmation of such reports.
The DOE bosses in Manila say there is rampant fuel smuggling going on in the Philippines. They have been quoted in news reports as saying that 30 percent of the fuel in the Philippines is smuggled. One for every three liters sold in the country is not paying any taxes, resulting in government revenue losses of from P30 to 60 billion annually.
The Philippines has the world’s second longest coastline but it only has 15 Coast Guard vessels to guard against smuggling.
Even if the Coast Guard were to focus only on the southern coast, where smuggled fuel is believed to originate, their 15 vessels would not be enough.
This is easier said than done, but it would surely be to the Philippines’ advantage if they acquired more ships to curb smuggling. The taxes they would collect would surely be more than enough to pay for these ships. This is the only solution to the fuel smuggling problem.
But other than that, the City Council, aided by our three Congressmen, may want to dig deeper into the pricing scheme of our fuel products. They might yet find a vote-raising solution to their constituents’ woes.
