Tuesday, September 09, 2008 Gov't allows direct oil import by tuna companies
GENERAL SANTOS CITY -- To help the tuna industry tide difficult times, the government is allowing fishing operators to directly import their fuel requirements, senior agriculture and fisheries officials revealed Monday at the opening of the 10th National Tuna Congress.
Agriculture Undersecretary Jesus Emmanuel M. Paras said the Agriculture department's Bureau of Fisheries and Aquatic Resources (BFAR) is talking with the Department of Energy (DOE) in the move to allow direct fuel importation.
"(We have) started the process of identifying fishing companies and industry associations interested to take advantage of this opportunity," he said.
Stakeholders of the local tuna industry have been complaining of high prices of diesel and gasoline prices.
It is expected that tuna industry players will pass a resolution before the end of the congress Thursday asking the government for a P5 per liter subsidy on petroleum products.
Marfenio Y. Tan, chair of the tuna congress themed "Managing our Tuna Resources: Exploring Opportunities and Alternatives," said the tuna fishing industry is the biggest consumer of fuel products in this part of the country, which has a requirement of 20 million liters a month.
"As much as 70 percent of a regular fishing expedition goes to fuel consumption," Tan lamented during a press conference.
Paras said the government is also working out a scheme with major oil company Petron for possible giving of discount to fishing industry players.
Representative Darlene Antonino Custodio of the First District of South Cotabato said there is a pending bill in the Lower House that seeks to exempt fuel products from the Value Added Tax, or to lower the VAT rate for fuel.
"We might as well find ways to reduce our dependence on fossil fuel by looking for alternatives. [The former] is dwindling and could not be replaced," she said.
Custodio noted that some countries, such as Malaysia, are no longer exporting petroleum products to avoid a shortfall in supplies there.
Saudi Arabia, she added, increased its own requirement for fuel products every five years.
Malcolm I. Sarmiento Jr., BFAR director, said direct importation of fuel products by fishing companies is allowed, citing the Oil Deregulation Law.
He recommended Malaysia to be the source of imported fuel products by fishing companies.
"(Diesel) in Malaysia is cheaper at P37 per liter," Sarmiento said.
He noted that fishing companies are in the best position to import fuel because they have fishing vessels to carry the commodity.
Custodio said tuna industry stakeholders should talk among themselves to discuss the direct importation of fuel products.
Among the talking points she mentioned is the location of the oil depot and the mechanics of distributing the products to the fishing operators.
