The Philippine Online Chronicles

In a drastic display of revenue losses since the implementation of a price increase freeze, some gas stations in Metro Manila closed shop recently, according to a philstar.com report.

The report identified three Rizal-based gas stations—Jetti in Binangonan and Orange and Shell in Cainta—to have closed shop. Gas stations in Metro Manila and Southern Tagalog will also follow suit, the report added.

The article’s source cited “revenue losses” and “low supply” of oil aggravated by Executive Order (EO) 839, which was issued by Malacanang to temporarily retain fuel prices to the October 15 level.

The said order was issued at the wake of typhoon Pepeng, when the government declared a State of Calamity.

However, a transport group dismissed the said development as a “gimmick” to “scare the people of an oil shortage.”

“The burden of proof lies on the oil companies,” said Dante Lagman, Secretary-General of the Pagkakaisa ng Manggagawa sa Transportasyon, in an interview with this writer. “They have to show us concrete proof of an oil shortage.”

Lagman also blasted the claims of the oil companies on “revenue loss” because of EO 839. He then called for a “State or people’s takeover of the oil firms” that will deliberately cut oil supplies as a result of the EO.”

Layoffs

According to the same report, the said development will result to layoffs of gas station employees.

In addition, some gas stations plan to undergo oil rationing or cut its night shift services.

“This stupid ploy of the oil companies is resulting to a domino effect that will aggravate the paltry conditions, not just of transport workers, but of their own workers as well,” reacted Leody de Guzman, Chair of the Bukluran ng Manggagawang Pilipino, in a phone interview. “The government has to check on this and immediately penalize oil firms that will possibly violate our labor laws,” de Guzman added.

Probe ordered

Executive Secretary Eduardo Ermita assured the public that these grievances are being investigated by the Department of Energy (DOE).

“I’m sure that is already being done by the DOE, because we don’t want a situation where there is a shortage of supply to the detriment of consumers,” Ermita said.

He also assured the public that there is adequate oil supply in the country, debunking the claims of the oil firms.

“Our message is do not be alarmed, do not panic. The situation is not that bad. If ever there are one, two or three gasoline stations that ran out of supply, for all we know they have already replenished this in a matter of hours,” Ermita said.

Reasons to increase

A source mentioned that oil firm Petron is pushing for an oil price increase because of the recent rise of pump prices in the world market.

The source said that as of November 3, Dubai crude averaged US$76 (P3,648) per barrel, a three-dollar increase form last month. Unleaded gasoline has also increased by two dollars over the month, the source added.

“Based on MOPS (Mean of Platts Singapore) and foreign exchange, prices should have gone up by P0.50 per liter on gasoline and P0.25 per liter for diesel,” the source said.

Petron also said that it is expecting a P 1.5 billion net loss in the last quarter of this year if EO 839 continues to take effect.

Buy-in, importation to be cancelled

In a report in abs-cbnnews.com, multinational San Miguel Corporation is pondering on the possibility of cancelling its plan to buy a majority stake in Petron Corporation, an oil firm identified with the “Big 3.”

"The company is evaluating the viability of exercising the option to acquire a 50.1% stake in Petron Corp in the light of the restrictions imposed on petroleum firms," Ferdinand Constantino, San Miguel corporate information officer, said.

Reports have also surfaced of a possible cancellation of “some” contracts on diesel importation by Petron.

Nationwide implementation

Transport sector party-list 1 UTAK called for an amendment of EO 839, saying that the order has to prevent gas rationing and must be implemented nationwide.

“This amendment will not only cure the price distortion, but it will, more importantly, help us maintain transport fare to what it is today, not only in Luzon but in the whole country,” said 1 UTAK Rep. Vigor Mendoza.