Baguio: A lawmaker called on concerned government agencies to look into the high disparity in fuel prices in this city. 'We are asking that the offices concerned look into the big discrepancy in the prices of fuel sold in Baguio. We were told that the fare per liter for transport from La Union to Baguio will only cost PHP2, but how come the difference is about PHP10,' Baguio City Lone District Rep. Mauricio Domogan said in a media interview on Tuesday. He said the city has been seeking solutions to this concern as fuel costs are greatly affecting the prices of basic goods and other commodities, as well as services rendered to the public.
According to Philippines News Agency, the city government is looking to create a fuel price monitoring task force that will also study and make appropriate recommendations to address the issue. This is an offshoot of the resolution proposed by Councilor Edison Bilog seeking to address the long-standing issues regarding high fuel prices. The Council has approved nine resolutions that call for price transparency, stricter monitoring of gas stations, and collaboration with national agencies to protect consumers and support local businesses.
The task force will conduct monthly price comparisons, a study of the city government's fuel expenses to establish a city-owned fuel depot, and verification of business tax compliance among local gasoline stations. The city government is likewise extending its call for Domogan to file a bill that would benefit vulnerable groups, such as persons with disabilities (PWDs) in accessing government services affected by fuel and transportation costs.
Pump prices on Tuesday show that two of the 'big three' oil firms here charge PHP66.40 to PHP68.10 per liter of diesel, while a small player's diesel costs PHP61.30 per liter. An analysis by the Department of Energy comparing fuel prices in Baguio City with those in nearby towns and provinces found that the higher prices in the city are due to a mix of supply limitations, cost factors, market conditions, and local demand, which does not necessarily indicate overpricing.
To help address the observed disparities and encourage a more competitive market, the DOE recommended several measures: establishing fuel storage facilities in or near Baguio to improve supply logistics; providing incentives for new fuel retailers to increase competition; implementing regular monitoring of prices, including promotions and loyalty programs, for transparency; reviewing local operating costs that may contribute to higher prices; and managing demand pressures by supporting alternative transportation options, such as better traffic management and improved walkability.
