Oil firms questioned for ‘unusual’ price cuts

  • Page Views 885
  • GASOLINE COST IN MINDANAO DECLINED BY P3/LITER

    The Department of Energy (DOE) has asked oil players in Mindanao to explain the unusually huge reduction in their gasoline prices, warning this may eventually qualify them for “anticompetitive behavior.”

    The DOE was referring to the move by some oil companies in Mindanao to slash gasoline prices by a huge P3 a liter for the period covering Aug. 30 to Sept. 6. This was based on monitoring by the DOE’s field office in Mindanao.

    “While price rollbacks like this are a welcome development for the consumers, the DOE cautioned that sudden and sustained huge decreases in oil prices might qualify as ‘anticompetitive behavior’ under the Oil Deregulation Law. This market behavior puts both smaller oil players and consumers at a disadvantageous position in the long run,” the DOE said.

    It said smaller oil firms could end up losing their market shares and subsequently fold up. “[Thus] remaining oil players may have the chance to dictate prices to the detriment of the consuming public.”

    The DOE is planning to reconvene the DOE-Department of Justice (DOJ) Task Force to look into possible violations of the law.

    It also assured consumers it would remain vigilant in ensuring the protection of their welfare.

    According to the DOE, the huge price cut also brought to light related concerns in the downstream oil industry in Mindanao. These included the reported peddling of petroleum products using “bote-bote” (bottled oil products) and the alleged smuggling from nearby countries.

    The DOE assured that its Mindanao field office has started coordinating with the local government units (LGUs) concerned and the Bureau of Fire to eliminate the “bote-bote” scheme and discourage consumers from patronizing such activity as this may endager public safety and health.

    The DOE added it was also in talks with the Bureau of Customs, stressing that smuggling would hurt not only the oil industry players, but also the economies of LGUs in Mindanao due to lost revenues. (Amy R. Remo, Inq)

    Share

    New Posts Recently publish post More

    • 27 March 2017
      3 hours ago No comment

      Canada funds four new maternity clinics in the Philippines

      Canada is funding four new maternity plus clinics in the Philippines to reduce deaths during child birth.   The initiative is funded under the “Innovations in Reducing Maternal Mortality in the Philippines” project.   The project has the financial support of Global Affairs Canada (GAC) and the Canadian non-profit ...

    • 27 March 2017
      5 hours ago No comment

      Filipino photographer arrested by Toronto police for alleged sexual assault

      The Toronto Police Service announced on March 16, 2017 that it wants to make the public aware of an arrest in an ongoing sexual assault investigation. The Toronto police alleged that at on March 11 this year, a 28-year-old woman went to have passport photographs taken by a man ...

    • 27 March 2017
      10 hours ago No comment

      Beauty Gonzalez shares love advice for friend Ellen

      “Pray for it.” That is the best love advice Beauty Gonzalez could give her good friend, Ellen Adarna, who recently broke up with the youngest son of the President, Sebastian “Baste” Duterte. Gonzalez also believes the right man will come along for Adarna. “Prayers lang ‘yan. Totoo. Good things ...

    • 27 March 2017
      13 hours ago No comment

      Michael V. remains a full-fledged Kapuso

      Award-winning comedian and TV host Michael V. continues his journey as a Kapuso as he renewed his contract last March 15 with GMA Network, Inc. Present in the contract signing were GMA Chairman and Chief Executive Officer Atty. Felipe L. Gozon, GMA President and Chief Operating Officer Gilberto R. ...

    • 27 March 2017
      16 hours ago No comment

      Ai-Ai delas Alas wins acting plum in New York festival

      Ai-Ai delas Alas bested three other nominees, including the daughter of legendary actor Robert Redford, to win Best Female Actor in the just concluded 7th Queens World Film Festival in New York on Sunday. Best known for her comedic performances in films, on television and in concert, the 52-year-old ...

    %d bloggers like this: