Cooking gas costs more in Vis-Min?

Thursday, January 19, 2012

A PARTY-LIST congressman yesterday said liquefied petroleum gas (LPG) costs P120 more for an 11-kilo cylinder in the Visayas and Mindanao, compared to its prices in Metro Manila.

Rep. Arnel Ty of the Liquefied Petroleum Gas Marketers’ Association (LPGMA) alleged that LPG and auto-gas, which many taxis run on, are overpriced south of the capital region.

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He identified at least four brands of the supposedly overpriced LPG, but none of the companies that supply these brands could be reached for comment yesterday.

Based on reports from the price monitoring division of the Department of Energy (DOE), Ty said, an 11-kilo cylinder of LPG in Metro Manila costs P700, but retails for at least P820 in the Visayas and Mindanao.

“The government cannot intervene to stop the high prices of LPG in Cebu because of the Oil Deregulation Law and cannot prosecute them. So, the LPGMA will encourage players in Luzon to put up LPG refilling stations in Cebu and compete, in order to force the rest to reduce prices,” Ty said.

Ty said overpricing is not feasible in the National Capital Region because there are at least 150 refilling stations owned by independent players.

According to the LPGMA plan, putting up a refilling station in Cebu would immediately reduce the price by at least P50 per 11-kilo cylinder.

“We will put up an LPG refilling station in Cebu, preferably in Mandaue City, which will be operated by the private sector from Luzon. This will not only create competition, but will also support the livelihood projects of the Mandaue City Government because they will hire workers,” Ty said.

The LPGMA congressman added he has filed a bill to protect the LPG consumers against unreasonable prices, but its chances of becoming a law are slim.

“So, our immediate action is to bring LPG business competition to Cebu. I know the Cebuanos will welcome our plan because it will really benefit them,” Ty said.