Thursday, September 04, 2008 Fuel discount could save tuna industry P1.2B By Edwin G. Espejo Correspondent
GENERAL SANTOS CITY -- If tuna producers and fisherfolks are granted a P5 per liter discount on fuel products, the industry could save as much as P1.2 billion in operating costs in one year.
Bureau of Fisheries and Aquatic Resources (BFAR) director Malcolm Sarmiento said the tuna industry consumes between 18 to 20 million liters of petroleum products a month, which make it the single largest consumer of fuel products in the whole of Central Mindanao.
Tuna producers and fisherfolks are reeling from the effects of fuel price increases beginning late last year.
Marfenio Tan, chair of the 10th Tuna Congress which opened Wednesday in General Santos City, said fuel consumption is eating up between 45 to 70 per cent of the operating costs of purse seine operators and small tuna hand line fishermen, depending on the size of the fishing boat and make of the engine.
They claimed that rising fuel costs is the primary culprit in the notable decline of landed tuna catch at the General Santos City Fish Port complex.
Last week, Gensan fish port manager Mike Lamberte reportedly told tuna producers here that the volume of catch landed at the fishing port complex has dropped by 34 per cent in the first semester of this year.
According to the Socsksargen Federation of Fishing and Allied Industries Inc/ (SFFAII), General Santos City is producing around 400,000 metric tons of tuna products every year.
Also last week, SFFAII asked the government to grant their members a P5 per liter discount to help them cope up with rising production costs and prevent small boat owners from totally abandoning tuna fishing.
Department of Agriculture (DA) Undersecretary Jesus Emmanuel Paras said under the Oil Deregulation law, big oil consumers are already allowed to directly import their fuel requirements.
Undersecretary Paras said the DA and BFAR, in coordination with the Department of Energy (DOE), has already "started the process of identifying fishing companies and industry associations interested to take advantage of the opportunity.
He likewise revealed that the Arroyo administration is currently negotiating with Petron, the country's largest oil company, "to sell fuel to fishing industry players at a discounted price."
He, however, admitted that the initiative is still "a work in progress."
Paras delivered the opening address at the 10th Tuna Congress in behalf of Secretary Arthur Yap who failed to show up.
Tan, however, said that directly importing their fuel requirements will require them to put up their own oil depots and service pipelines as they doubt big oil companies here will allow their existing facilities to be used by the tuna industry players as tolling facilities.
Tan also told South Cotabato Representative Darlene Antonino-Custodio that they are working out mechanics and details of a possible direct oil importation. (EGE)
