Monday, April 28, 2008 Transport group warns vs fuel crisis
A FUEL supply crisis and a spike in the prices of basic commodities loom large in Central Mindanao region with the impending closure of oil depots of Chevron, Shell and Petron in Bula, General Santos city, a transport group has warned.
With this, the Confederation of Transport Cooperatives and Associations in General Santos City Inc. has asked the City Government to reconsider the closure of the oil storage facilities at the end of this year.
The Regional Development Council in Central Mindanao backed the transport group for a deferment of the closure order. This was in line with the City Government's enforcement of the Comprehensive Zoning Ordinance 2001-2010.
The ordinance reclassified the Bula area from industrial to commercial. The transport group sought an extension from three to five years, apparently in consultation with local oil industry players.
"In our research, it will take at least three to five years for any oil players to build a commercial fuel depot that can adequately supply the city and nearby provinces," the group said in its position paper.
"The depot closure will result in at least a three to five year interim period whereby the oil players, to include new entrants [small independent oil players], will be trucking fuel supply from Davao City. By our estimates, this may correspond to an increase of fuel prices of P.60 to P1 per liter over the prevailing pump prices," it added.
With fuel products coming from Davao, which is about 160 kilometers from General Santos City, consistency and reliability of supply was raised by the transport confederation.
Ma. Lourdes D. Lim, RDC-12 acting chair and director of the National Economic and Development Council in Central Mindanao, said the council carefully deliberated the matter recently.
"Our recommendation is for the City Government to reconsider extending the operation of the Bula oil terminal until such time there are other existing and operational depots that can provide the city and nearby areas with reliable, safe and stable supply of fuel products at competitive prices," Lim wrote to Mayor Pedro B. Acharon Jr.
Acharon said the local government is seriously keen in implementing the closure order by December. (BSS)
