Cebu governor to sue 3 oil firms

[epoyking]

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nindot ni kay mura naa ta chance aron pud tawn mo ubos gamay ato gas...

[godwhacker]

Over alleged overpricing Garcia sues 3 oil firms before DOJ
By Edu Punay and Jessica Ann R. Pareja Updated May 22, 2009 12:00 AM



CEBU, Philippines – The Cebu provincial government filed yesterday a complaint before the Department of Justice against the country’s three biggest oil firms for alleged overpricing of their petroleum products in the province.

Gov. Gwendolyn Garcia has sought the indictment of Pilipinas Shell Petroleum Corp., Petron Corp. Chevron Corp. for supposed violation of R.A. 8479 (Downstream Oil Industry Deregulation Act of 199, which penalizes cartelization and predatory pricing.

Garcia said representatives of the firms failed to justify the discrepancies in prices of fuel in Cebu as compared to Manila and Mindanao during a meeting last Monday.

“It seems that there is really a huge discrepancy and injustice being committed by the big three against the people of Cebu,” she alleged.

The complaint was also signed by officials of Cebu Chamber of Commerce and Industry, Mandaue City Chamber of Commerce, Filipino Business Chamber of Commerce and Lapu-Lapu City Business Chamber of Commerce.

In an interview, Garcia said they have found by mere comparison that fuel prices in Cebu are P5 to P8 higher than those of Metro Manila and Mindanao.

She said the oil firms claimed that prices of their petroleum products are higher in Cebu because of the costs for transportation of their fuel to the province.

The lady governor did not buy this, questioning why fuel prices in Mindanao are still lower than in Cebu.

“We are getting the dubious distinction of having the highest prices of fuel in this entire country. These clear, inexplicable price discrepancies have affected business, transportation and everyone in Cebu. I cannot allow for this to continue,” she lamented.

In response, Justice Sec. Raul Gonzalez said they would look into the complaint. He tasked the joint task force on oil deregulation of DOJ and Department of Energy to handle the case.

The task force, co-chaired by Justice Undersecretary Jose Vicente Salazar, has been formed to look into complaints and cases of alleged unreasonable pricing of oil products including liquefied petroleum gas.

According to Garcia, the issue on the disparity of fuel prices was raised during a meeting attended by officials of Phil-Export Cebu and CCCI, and President Arroyo during her recent visit in Cebu.

During the meeting, businessmen claimed that prices of fuel in Cebu are higher than in other places.President Arroyo then asked Energy Secretary Angelo Reyes to clarify the matter, but Reyes did not have a clear answer to the issue.

Garcia, who attended the meeting, told the President that the province would instead take care of the issue.She said it was “unacceptable” that petroleum products in Cebu cost P5 to almost P8 more than in Luzon and other parts of the country.Under R.A. 8479, cartelization and predatory pricing are prohibited and may be fined from P250,000 to P500,000. It imposed a punishment of imprisonment of not more than two years.

A survey conducted by the CCCI as of May 15 showed Cebu gas stations sell diesel for P31.50 per litter or a difference of P5.75 compared to diesel sold for P25.75 in Manila. The three oil companies only sell diesel for P28 per litter in Cagayan de Oro.

“A look at the tables (comparative price watch in Manila, Cebu and Cagayan de Oro) show that the oil companies have, more or less, the same prices for its oil products. How could respondents claim to be competitors yet have the same prices for its products? Competitors are supposed to compete, not to agree, combine or to be in concert to fix price,” the complaint sheet reads.

During last Monday’s meeting, the three firms have failed to justify the disparity in fuel prices.

Shell Vice President Robert S. Kanapi said that in Manila, the price may be lower because of the cheaper distribution cost.

He said that since products are shipped from the mainland to Cebu, distribution cost is higher.

But Garcia rejected the explanation on distribution cost because Cebu is nearer to Manila than Mindanao, which posted nearly the same price as that in Manila. — LPM (THE FREEMAN)

[mandauesterlingsilver]

kaning overpricing sa atong gas kay naa sad gyud nag paloyo mga politiko ani...imagine 5-8 pesos per liter is a big money. murag funding nasad ni sa election hehe

[Raikage1]

serious unta ni. pero I think propaganda gihapon.

[giddyboy]

kaning overpricing sa atong gas kay naa sad gyud nag paloyo mga politiko ani...imagine 5-8 pesos per liter is a big money. murag funding nasad ni sa election hehe

pero hagbay raman ning diperencya nga 5-8 pesos per liter...if im not mistaken, murag dugay2x naman ni nga mas mahal ta kaysa Manila or Mindanao.

Gwen was just acting accordingly and swiftly on this complaint the Cebu business sectors addressed to PGMA a week ago during her visit.

kung dili mo action ang guv, ingnon way paki. kung mo action, ingnon sab nagpa pogi points or hawod...wa gihapoy dag-anan.

maypa mo action bahalag ingnon ngpa pogi points kaysa wala...tutal dili mani binuang pag file sa kaso. this is serious business...

[giddyboy]

Nag pasabut nga daghan ug kwarta mga tawo dire kay wa man sad nagreklamo, karon naman lang ta nag yawyaw ug maayo nga nilihok na si Gwen. Unya pasanginlan pa mga pamulitika kuno.

mao gyud. pasabot daghan pud lambay ug nokus dre Cebu...hehe

[luwid]

kabasa man ko ani naay thread ani dre sa istorya sauna , dugay dugay nasad to about price difference... murag wa may nitubay ato nga thread dre , pasabut ok ra d ay ta ato panahuna...utro sad ko wako nitubay ato nga thread...

[giddyboy]

^^^it's because at that time, what some of us surmised on the price difference was the logistics. manila has an oil depot. Mindanao has an oil depot. Cebu has none (except the new one in Lapu2x).

but from reading the news recently, these oil firms did no mention about difference in logistics but difference due to stiff competition daw. mao dghan nag duda na including the Cebu business sector and Gwen herself. mao when they checked, they found enough grounds to charge the big 3 in court.

[thinKingMan]

na national news na gyud si gwen, weeee!!!

maau unta naa ni resulta iyang g-file nga kaso sa big 3. luoy sad kaau mga cebuano
unsa tan-aw nila sa ato mga datu?!?!?! aw datu gyud kaau, hehehehehehe

[godwhacker]

na national news na gyud si gwen, weeee!!!

maau unta naa ni resulta iyang g-file nga kaso sa big 3. luoy sad kaau mga cebuano
unsa tan-aw nila sa ato mga datu?!?!?! aw datu gyud kaau, hehehehehehe

Sa pagkatinuod bitaw bro, ug moadtu ka ug Manila, ang ilang impresyon bitaw nga daghan ug kuarta ning mga tawo dire. When they were jacking up sky high the price of oil, Nag agulo tanan labi na gyud sa Manila pero bisan nag agulo mga taga Cebu, maayo kaayong modala ba -di mailhan. Hinan-aw mag sine gud. Mao nga pwerting abuso gyud ining BIG 3 kay mga taga Cebu wa man baliha -sa ilang tan-aw. Karon nga wa na kaagwanta mga taga Cebu kay patuyang nalang sad ni sila, -wa makontinto ba, katilaw na gyud nuon sila ug kiha. Maayo ni kay aron matan-aw nato ug unsa gyud ilang ikatarungan unya sa korte. And I'm looking for the day bro that you will be proved correct.

That once they are inside the court room all of them will say, You Honor, we truly believe that the Cebuanos are rich people and that's the main reason the price of oil there is higher than any other part of the Philippines or even in Asia. So blame us not your Honor, it is the Cebuanos who should be blamed for being rich. Amen...