WHATS UP IN Oil priceS

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WHATS UP IN Oil priceS?
Privilege speech of senator aquilino q. pimentel,
jr. At the senate on april 14, 2009
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As of  March 16, 2009 revised as of April 08,
2009, my office compiled the following data on
diesel oil prices at the gas pump level.
confusing Customers
To say the least, the prices rather than easing
the minds of the customers, actually cause
confusion. What's happening? is this the result
of free trading in oil? Or manipulation by the
oil companies?
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DIESEL Oil price
Let's take a look at the pump prices of diesel
fuel at some gas stations in four places
1. Metro Manila, 2. Bulacan, 3. Cavite, and
4.Negros Oriental. Incidentally, in this
presentations, we speak basically of the price of
DIESEL fuel that runs jeepneys, and buses, the
common mans transportation of choice.
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Selected gasoline stations in Metro manila
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A. Caloocan city
b. Las piÑas city
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c. Makati city
P0.40
d. Malabon city
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e. Mandaluyong city
f. Manila city
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g. marikina city
H. Muntinlupa city
P 0.30 P 1.49
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i. Paranaque City
P1.05 P1.24 P0.67
j. Pasay city
P 1.30
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k. Pasig city
No price difference
l. quezon city
P0.55 P0.30 P0.25 P0.25 P0.65 P0.60
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m. San juan city
n. Valenzuela city
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PROVINCE OF BULACAN
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PROVINCE OF CAVITE
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PROVINCE OF NEGROS ORIENTAL
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Questions?
The differences in the pump prices of diesel
fuel at various suppliers for example, between a
gas station supplied by Petron and another gas
station supplied by Shell may be understood as
probably determined by competitive market forces.
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For example, here are two gas stations in Las
Piñas City, Metro-Manila one supplied by Petron
and another by Shell, that offer their customers
different prices for the same commodity  diesel
fuel.
PETRON
The Petron supplied gas station in Zapote Road,
offers P 23.50 per liter of diesel oil. 
The Shell supplied gas station in Zapote Road,
offers P24.85 per liter of diesel fuel.
SHELL
They are only 500 meters apart and are located
on the same avenue Zapote Road. But, the price
difference is P1.35.   We, ordinary
customers, can probably understand the price
variance as dictated by free market forces.
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EXPLAIN
But what of the variance  between the pump
prices of diesel fuel in two gas stations
supplied by the same oil distributor? how does
one explain it? especially if they are located a
few meters from each other? Like for instance,
the Green Hills Caltex and the Club Filipino
Caltex which are only 150 meters apart.
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DOES IT???
DEPARTMENT OF ENERGY
Does it not bother the Energy Department or the
Energy Regulatory Board that these price
distortions occur?   Take a look at another
example.
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unacceptable
There is a oil distillery in Sampaloc,
Manila. Delivery from that distillery to a gas
station in Sampaloc should cost less than
delivery of the same item to Quezon city, for
instance. But why is the price of diesel in the
gas station of Dimasalang, (Petron P26.75) in
Sampaloc, Manila more expensive than  the price
of same commodity being sold in Quezon City
several kilometers farther away as in the gas
station in Philcoa (Petron P25.75) or in the gas
station in Marilao, Bulacan (Caltex P24.25)?
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DO YOUR JOB OR EXPLAIN
I suggest the institutions of government which
were created to safeguard the people from price
gouging or some such deleterious practices need
to do their job or at the very least explain to
the people why these price differences happen
what they can do about them, and if nothing, at
the very least tell the people the reasons for
their inability to do so.
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Our dependence on crude from the middle east
will continue for some time.
When the price of crude irrationally skyrocketed
some months ago to some 53 dollars a barrel,
people raised a howl against it. Government said
it could not do anything about it. Free trade.
Free enterprise. No interference from the
government.
When the price of oil dropped to a low 35 a 
barrel  in February 2009, people expected a
corresponding mathematical reduction at the pump
price level. It did not happen. Free enterprise
principles prevented government  from doing
anything about it. Free enterprise guaranteed
that the oil companies are able to laugh all the
way to the bank even as the people suffered.
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Status quo
60.00
Now we have this phenomenon of gas pump prices
of  oil supplied by the same companies exhibiting
differences from one another? What gives?  Does
our government agencies have any rational
explanation for it? Better still, what can they
do about it?
50.00
40.00
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Let the people know about the ins-and-outs of
oil trading.  Perhaps, we can learn from the
recent world-wide economic meltdown. Free trade
expands the greed of powerful conglomerates and
constricts access to the peoples need of oil
with disastrous consequences as the world is now
experiencing.
bailouts
AIG
GM
LEHMAN
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WELFARE OVER PROFITS
I guess, it may not be farfetched to suggest
that as a nation, we should rethink our
commitment to unbridled capitalism and tell those
who do business in our country that while they
are welcome,  profit making has to be
restrained when the national welfare is at stake.
And no where is that situation more graphically
demonstrated than in the oil industry.
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