THE Cebu City Council will summon oil companies to attend one of its sessions to explain the difference in fuel prices in Visayas compared to those in Mindanao and Luzon.

It also asked the Department of Trade and Industry (DTI) and the Department of Energy (DOE) to inform the body of measures they took to address the concern on prices and on the cartelization of the industry.

Sun.Star accepts donations for victims of Typhoon Ondoy

It likewise asked the Senate and the House of Representatives to review Republic Act (RA) 8479, or the Oil Deregulation Law.

In a privilege speech, Councilor Roberto Cabarrubias complained that since the law’s enactment in 1998, fuel prices have increased by 300 to 400 percent.

He said there is a clamor for the return to regulation, with several House bills pending before Congress, and he wanted to know if they are justified.

Safeguards

He also asked if safeguards are in place because of the suspected cartel and collusion of players in the industry.

“Invite representatives of fuel companies with consumer groups to explain why fuel is more expensive compared to (that in) other regions,” he asked the city council.

He likewise requested the DTI and the DOE to inform the body on the “measures taken to address oil price hike and prevent cartelization.”

It was Carillo who asked that both the Senate and the House of Representatives be requested to review RA 8479.

Update

Councilor Arsenio Pacaña asked Cabarrubias for an update on the complaint of Cebu Gov. Gwendolyn Garcia, who filed in May a complaint against the country’s three oil firms for violating RA 8479.

That was after she learned that Cebuanos are paying P5 to P8 more for oil products than consumers from the rest of the country.

The governor wanted redress of the “injustice” in court.

Pacaña said what Cabarrubias wanted may just be similar to what Garcia did.

Cabarrubias, though, said he does not know of the update on the governor’s complaint. He would rather have the City Council summon the oil companies.

An oil company official earlier explained that the fuel prices depend on market forces, like the prices set by the big and small oil players.

There were also reports that fuel smuggling in Manila has likewise resulted to lower prices in Luzon.

Currently, however, fuel is reportedly getting scarce in Luzon because oil companies have not added to their inventory because of Executive Order 839 that President Gloria Arroyo signed.

The order sets fuel prices to the Oct. 15 level to help the victims of typhoons that struck Luzon recently.