CAGAYAN de Oro and the rest of Mindanao will experience fuel shortage should the current oil price freeze continues, the head of the local petroleum dealers association warned.

John Elizaga, president of the Petroleum Dealers Association of Cagayan de Oro and Misamis Oriental, issued the caution as fuel shortages spread to thee Luzon provinces Tuesday.

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“Oil companies can’t just continue selling at a loss. If this problem persists, the shortages will affect not just Cagayan de Oro but the entire island of Mindanao,” said Elizaga, a former Cagayan de Oro vice mayor. "Fuel rationing is possible under this situation."

Local petroleum dealers, he said, share the sentiments of oil companies against the Executive Order (EO) 839, which fixed fuel prices at October 15 levels in Luzon in the wake of oil price increases even as the island reeled from the effects of two calamities.

“Nobody would gamble of buying supplies only to be sold for less and then incur losses. Therefore, this EO (839) should be lifted immediately,” Elizaga said.

He made it clear, however, that Cagayan de Oro and Misamis Oriental still have stable supply of fuel products.

“There’s nothing to worry for now. I believe supply remains stable,” he said.

Meanwhile, independent oil firms have assured they have enough fuel supply to cater consumers’ needs.

Malou Espina, corporate communications manager of Total Philippines, said they have nine days reserve for their diesel and 21 days for gasoline as of Tuesday.

She noted that once their supply is depleted they could immediately place an order and the shipment would only take three to five days.

Chito Medina Cue, general manager of Unioil Philippines Petroleum Inc., (UPPI), said they have sufficient supply of petroleum products.

Cue said they were aware that some gasoline stations stopped operations due to lack of supply, but in their case, operations continue.

“We’ve already placed our importation for the months of November and December so our supply is more than enough,” Cue said.

Still, independent oil firms lamented that EO 839 is causing them losses.

“The situation is very untenable…we are selling at a loss,” Espina said.

She added that for diesel, they already incurred P5 per liter losses and they are looking at recovering this once the government lifted EO 839.

Prices of diesel in the international market, said Espina, is on the uptrend and currently prices of diesel being sold in the country is P10 per liter lower than gasoline.

“We are hoping that it would be lifted (the soonest possible time) kasi everyday lugi kami,” the Total official further said.

Energy Secretary Angelo Reyes said Monday that the country’s supply of finished products will last only until eight to 13 days.

The energy chief however assured that there is nothing to panic because oil companies continue to import in order to augment the supply in the market.

The major oil firms -- Shell Philippines, Petron Corp. and Chevron Philippines -- said they still have sufficient supply, but could not be able to accommodate the demand of the independent oil companies.

A state of calamity declaration calls for a price cap on basic commodities, including oil, and allows the national government to allot additional disaster funds for local government units.

On Tuesday, gasoline stations from Lucena City in Quezon province to as far as Guinubatan in Albay province have started putting up signs with the words “Out of stock."

The province of Batangas, where several oil companies maintain their depots, has also been experiencing a shortage in petroleum supply after the presidential edict was imposed.

The EO 839 has been criticized by local and foreign business groups, which said that artificially setting prices will lead to a oil supply shortage which is already being felt in several provinces in Batangas, Quezon, and Albay.

Since the price freeze, gas stations in Batangas have closed shop at 10 p.m. to save up on supply, instead of completing their usual 20-hour daily operation, reports said.