Fuel price regulation pushed in Baguio
BAGUIO CITY—Gasoline, diesel and other petroleum products may be included among price-regulated commodities under a proposed amendment to the Price Act, a move that could address the persistently high fuel prices in the summer capital, according to Baguio Rep. Mauricio Domogan.
“Baguio pump prices are higher by P10 to P15 per liter compared with Rosario [town] and San Fernando City in La Union,” Domogan said in House Bill No. 6634, which he filed on Dec. 4.
He noted that Department of Energy (DOE) computations show that transporting gasoline from the nearest depot in La Union province to Baguio—a distance of about 68 kilometers—costs only around 50 centavos per liter.
As of Wednesday, diesel and gasoline prices in the city range from P63.60 to P67.65 per liter.
In 2018, the DOE audited fuel prices in northern Luzon following public outcry after local motorists paid as much as P66 to P67 per liter of gasoline in Baguio.
The audit concluded that freight costs accounted for as little as 18 centavos per liter for transport to the city.
The oil industry has been deregulated since 1998 with the passage of Republic Act No. 8479, limiting the government’s ability to intervene in fuel price disparities between Baguio and neighboring lowland towns.
Unbundle
In 2018, the DOE tried to require oil companies to “unbundle” their costs but was blocked in court after firms asserted their autonomy under Republic Act No. 8479, or the oil price deregulation law.
During several public dialogues with fuel retailers facilitated by Domogan’s predecessor, former Rep. Marquez Go, authorities were limited to making appeals, which resulted in a P3 reduction in pump prices in 2019.
Domogan said House Bill No. 6634 “simply classifies petroleum products as basic necessities under Republic Act No. 10623, or the amended Price Act of 2013, and does not impose price control as a default.”
Instead, the measure would allow the government to monitor fuel retailers, guard against profiteering, and intervene during emergencies. The bill also notes that fuel price disparities across the country affect consumption behavior, food prices, and the supply chain.
