Fuel dealers may face cancellation of business

Wednesday, January 18, 2012

FUEL dealers in Cagayan de Oro may face cancellation of business permits if they continue to implement price hikes despite the order from the Department of Energy (DOE).

Councilor President Elipe said Tuesday Cagayan de Oro should not be included in any fuel price increase while it is still under a state of calamity.

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Elipe said Mayor Vicente Emano has reportedly ordered them to prepare a list of violators for possible filing of a case or revocation of permits.

“But gasoline dealers would be given notices first before the implementation of such legal action,” he said.

A few days after Tropical Storm Sendong hit Cagayan de Oro in December, President Benigno Aquino III declared a national state of calamity that would mobilize funds to help the city and other affected areas.

The declaration also provides for a “price freeze” on all products.

Based on the report of Task Force Calibration, a team that monitors all gasoline dealers in the city, some dealers reportedly implemented increases in their fuel products, in violation of the “price freeze” clause of the declaration.

The other week, Caltex hiked the prices of its gasoline and diesel by P.80 per liter, while Petron increased by P1.00 per liter.

“I am dismayed because until now, I did not receive any reaction from DOE Undersecretary Jose Layug in response to the fuel price increase in Cagayan de Oro,” Elipe said.

However, City Councilor Edgar Cabanlas said it would be difficult for Emano to implement the order because all gasoline dealers are involved in overpricing.

“Elipe should have watched and monitored gasoline operators and called for a meeting with the association. There should be precautionary measures beforehand. What would happen is that nobody would be selling because all are violators,” Cabanlas told Sun.Star Cagayan de Oro.

He added that Elipe should have consulted with the Department of Trade and Industry (DTI) since this is also considered as “overpricing”.

“Local gasoline dealers are not to be blamed because they might be following orders from the real owners,” Cabanlas said.

But even with this, Elipe vowed to pass a resolution requesting all gasoline dealers in the city to revert back the prices of fuel to its original price before the December 16 flash flood.

The new round of price increases anticipated since last week has come to fruition with Petron the first of the big oil players to announce price hikes for gasoline and diesel products.

Petron announced that prices will increase effective Tuesday at 6:01a.m. For unleaded gasoline, an additional P0.50 per liter was imposed, while P0.70 per liter for regular gasoline and P0.90 per liter for diesel and kerosene.

The continued international oil price adjustments brought about by continuing tensions in the Middle East are to blame for these new prices.

No announcements from the other oil retailers in the Philippines but they are expected to follow suit.