At last, the provincial leadership has succeeded in unlocking the puzzle regarding the high fuel prices in Bohol compared to Cebu City and other parts of Mindanao like Davao and Cagayan de Oro cities. For the first time, apparently due to the constant nagging of Gov. Edgar Chatto coupled by powerful media pressure, gasoline price in Bohol is now three pesos cheaper starting yesterday morning. Caltex spearheaded the dramatic rollback while other industry players like Shell and Petron are expected to follow suit. In effect, the governor just wanted for a parity in fuel prices vis-à-vis other cities in the Visayas and Mindanao. A massive public outcry that oil price in Bohol is the most exorbitant in the Philippines today moved Gov. Chatto to initiate measures to cut the spiraling prices of fuel products like gasoline, diesel fuel and kerosene. Gov. Chatto's appeal to the Big 3 to lower fuel prices here has given off a positive reaction from Caltex when it ordered price reductions of P3 for its gasoline products and P1 for diesel.

This, following phone calls received by Chatto from the national government Friday morning ensuring of a positive outcome of the Boholanos' plea for the longest time now for oil price reduction in the province, which even got strong support from the Regional Development Council (RDC) and the Sangguniang Panlalawigan (SP) during previous meetings with both bodies in several attempts to find the appropriate solution to reduce fuel prices in Bohol. Early yesterday morning, the governor was informed of Caltex's oil price reductions as an offshoot of Wednesday's hearing with the joint task force of the Department of Energy (DOE) and the Department of Justice (DOJ), which was made possible with the help of Energy Sec. Jericho Petilla, DOE-Oil Industry Management Bureau Director Zenaida Monsada, and, with the very strong push and support of no less than Pres. Benigno S. Aquino III, himself. This was later confirmed by Butch Abaya of Caltex in a radio interview over radio station DYRD-AM on the same day stating that the price reduction took effect at 12 o'clock midnight that day. Although one of the oil players, that is, Caltex, gave in to the people's plea, still, Boholanos are not happy because despite the price reduction, fuel prices in Bohol are still higher by as much as P10 as compared to that of other provinces. Despite clear indications that oil players in Bohol are turning a deaf ear on the people's appeals to lower fuel prices here, Chatto is still hoping for a more favorable action by month's end.

"The Boholanos are thankful to Caltex, but especially to Pres. Aquino for helping us out on this particular problem, but this does not mean that we would discontinue our plea to oil industry players," the governor said. "Cooling off a little on the issue is only a reprieve due to Caltex's price reduction and to give them more than enough time to ponder on whether to heed the people's request or decide that they are willing to undergo a joint DOJ-DOE probe, a congressional inquiry, or both," Chatto said. Chatto's final diplomatic appeal to fuel industry players in Bohol came about as the final resort agreed upon among Provincial Development Council (PDC) Executive Committee (EXECOM) members and all other interested parties in a meeting Wednesday. Statistics generated through DOE survey upon request of Gov. Chatto as baseline info confirmed the huge gap of gasoline and diesel prices in Bohol as compared to those from Manila and Cebu and other key cities in the country, showing a price difference ranging from P8 to P12 per liter. To date, comparative charts and graphic presentations of data presented indicated that Bohol has the highest pump prices for both gasoline and diesel as compared to both Manila and Cebu. "It may have taken time for us to delve into the proper procedures and sift through the legal processes but the people should understand that we are only making sure that the true culprits would not go scathe-free," the governor said.

Chatto had already made this explanation cum appeal to both the PDC and the SP during previous meetings with both bodies in several attempts to find the appropriate solution to reduce fuel prices in Bohol. But despite the Provincial Government's best efforts, it appears that industry players continue to remain deaf to the Boholanos' plea for oil price reduction. It shows that after several dialogues and numerous "solutions," Bohol's problem of high fuel prices has kept recurring that the governor has lost patience in dealing "nicely" with oil players and is now instead, bent on pushing for a congressional inquiry and even legal steps if not satisfied of the reaction of the oil players. Dialogues with the Big 3, small industry players and different sectors of the community facilitated by the Provincial Government were presented to the people in several attempts to even out the playing field. "Fierce business competition has never been really a problem in Manila and other bigger cities when it comes to oil prices and this is why my mind is in a quandary why this recurring problem has happened in Cebu, and now, in Bohol," Chatto said. In addition, the DOE's inaction on the matter and its admission that its mandate is only to "pursue monitoring to ensure reasonable oil prices/adjustments" has clearly dismayed not only the governor but also the people. Earlier, both the RDC and the SP have already passed resolutions in support of Gov. Chatto's move and if Wednesday's hearing would come to naught, this would only prompt the governor to push harder for a congressional hearing on the matter. “If this problem persists, we are left with one more option – that is to seek the intervention of the court. We are considering a legal battle,” Chatto said.

OIL CARTEL IN BOHOL 

Why are fuel prices in Bohol keep on moving up?

 The Department of Energy (DOE) has the ready answer: It is costly to transport supply of these petroleum products to Bohol from the source and the buyer has to pay extra cost, Zenaida Y. Monsada, director-Oil Industry Management Bureau said in an exclusive interview in the sidelines of the “Briefing On Downstream Oil Industry” forum held here last week.  But listeners to the radio programs that discussed lengthily on this issue disputed DOE's claim. They said how come that petroleum products, such as diesel and gasoline fuels, are much cheaper in Cagayan de Oro city in northern Mindanao which is farther than Bohol and in other cities.  Monsada said that DOE is still looking into this (oil price disparity) because the oil industry depends largely on market forces or even the law of supply and demand.  “Usa nga definition sa market is how much the buyers are willing to pay and the sellers to sell. If the buyers are willing to pay this high price, i ‘di enjoy ang sellers.” “Kon dako imong market daghan ang players. Daghan ang players so dako ang competition,” Monsada explained.  While Monsada admitted that DOE cannot actually dictate the price or no control over oil price adjustments due to the deregulation law, she said the DOE was (in Bohol) to respond to the request of Gov. Edgar Chatto. But for Maribojoc town Vice-Mayor Fructuso Redulla who said over a radio interview that somehow a perceived oil cartel in the province has something to do with this oil price disparity. But he did not explain how this cartel works.

 Despite the presence of “free enterprise,” other players or other gas dealers, aside from the big three --- Shell, Caltex, Petron ---- were swallowed by the system of a bit cartel, Redulla said, since their prices are almost similar.  It was learned that a difference of more than PhP10/liter of unleaded gasoline has been noted higher than what Cebu sells and Cagayan de Oro City in northern Mindanao which is farther than Bohol.  Chatto also confirmed the big disparity of oil selling prices after he and DOE met and the latter showed presentation of price monitoring results the other day. He said during the “Kita ug ang Gobernador” weekly presscon on Friday that big oil players assured him of a roll back starting Saturday (April 26) but did not confirm how long it would take and how much.  He hinted that other aggressive means of resolving the oil price hikes may be resorted to legal war.

OIL DOWNSTREAM

In this time of incessant and expensive fuel hikes, a drop of gas wasted is a precious loss and the DOE said pump stations delivering roughly two teaspoons of fuel less, can be legally culpable. In fact, two teaspoons of fuel lost in every 10 liters is such that a station could be closed on its third offense, declared DOE Oil Industry Management Bureau (OIMB) chief Director Zenaida Monsada. At the recent multi-Sectoral Advocacy Campaign on the Downstream Oil Industry held at the Bohol Tropics April 22, and attended by local government information officers and downstream industry stakeholders, Dir. Monsada shared that the DOE implements monitoring activities to penalize refilling stations that do not comply with the government step to enforce consumer protection. Arturo Valerio, of CSO Global Services Corporation shared Monsada's statements. Valerio, who spoke on the basic principles of mechanical pump calibration and sealing led LGU representatives and stakeholders to a gasoline pump inspection if only to demonstrate how recalibration and sealing is done. At the Amare Shell Station along CPG Avenue corner Calceta Street, Valerio showed officials a standardized 10 liter calibration bucket, which features a sealed calibration guide for easy reference.

“Ten liters is ten liters, 50 milliliters over or under (which is roughly two teaspoons) mean a recalibration of the pumps, he said. It is a responsibility of the station to call in franchise contractors as well as local government representatives to monitor and observe the recalibration procedures, Valerio said. Local governments must be there as they issued the business permits and are there to make sure no consumer gets shortchanged. Imagine if a 10-liter bucket loses two teaspoons, how much short-changed does an unsuspecting motorist get from an illegally set-up bottled refilling station?, asked Dir Monsada. Even if these bottle stations use a liter bottle, just where does a liter measure? she asks. Aside from you do not see any clear line that says a full liter in the bottle, even sodas in the same bottles do not measure exactly the same, Monsada pointed out. Monsada's view then reiterates the government's stance on illegal refilling stations that are not just prone to under deliveries, but also dangerous and are not helping local economies as they put up unhealthy competition with legitimate stations and they could be sourcing out their duel from illegal sources. While pump stations calibrated pumps are sealed, mandatory recalibrations are done only once a month, he said. But with the DOE so thinly spread, there are stations that get only an annual recalibration, Monsada admits. (JANET LIM-VILLAROJO, RIC V. OBEDENCIO and REY ANTHONY CHIU)