DOE cites reasons for fuel price gap PDF Print E-mail
Monday, 01 February 2016 11:23

The Department of Energy-Mindanao Field Office based in Davao City cited transportation costs and other administrative costs as among the reasons why there is a disparity in fuel prices in Zamboanga and other parts of Mindanao.

Engr. Nilo Geroche, DOE Division Chief for Energy Industry Management said the difference in fuel prices, though very minimal, in Zamboanga City and other cities like Davao, Cagayan de Oro, General Santos and Iligan can be attributed to the expensive transportation costs and other expenses that gasoline dealers and retailers incur upon purchase.

Geroche said the DOE can only give suggested retail price for fuel products but does not have the power to dictate prices on gasoline station dealers and retailers as prices are imposed upon by the oil companies.

He stressed that the DOE is only mandated to monitor the quality and quantity of fuel products including LPG. For LPG for example, he said, the Department of Trade and Industry (DTI) monitors the LPG tank (such as weight) while the DOE monitors the content of the tank.

Disparity in prices is mainly caused by market forces, taking into consideration the overhead expenses and other miscellaneous expenses incurred by the gasoline dealer/retailer, the DOE official emphasized.

There could be places that are farther than Zamboanga City and yet offer lower oil prices as they have low if not minimum overhead expenses such as Zamboanga del Sur, Ipil and Sibugay to name a few.

Nonetheless, fuel prices in the cities of Dipolog and Cotabato are higher than the prices in Zamboanga City, based on DOE monitoring as of January 26. (Investment Promotions Division/PIO)