Wednesday, January 25, 2017

Fuel price war

NAGA CITY— The on-going price war among gasoline retailers here has substantially benefited the local consumers, according to Rey “Ninong” Fusingan, owner of a gas station, in an interview by the BICOL STANDARD.

Rey Fusingan, who owns Petron Sipocot franchise, has mixed feelings about the ongoing price war in the sale of petroleum products. While his markup has been affected by said price war, somehow he feels that it would greatly benefit his clients who patronize his gas station in Barangay Tara, Sipocot, Camarines Sur. (Photo: Jojo Colasito)
Fusingan said local competition has compelled him to sell his petroleum products cheaper by one peso per liter, as compared to the pump prices in Naga City today.

“This is the essence of price deregulation. But this will only happen if there is true competition, or as long as the gasoline dealers do not connive with each other,” a passenger jeepney driver said.

In the same interview, Fusingan explained that almost all gasoline dealers buy their supply from the depot in Pasacao, Camarines Sur. This means that if there is no stiff competition in their business, they could impose a pump price that is very similar, if not entirely the same, Fusingan added.

Meanwhile, he related in the same interview that one of his business competitors, Fuel Save, has been selling crude oil and gasoline at least P1.00 cheaper than the price in Naga City.

“If I do not sell my product at the same price, I will lose my clients”, he added.

He further explained that he was, however, given a special price by his supplier, which is why he could complete without experiencing business losses.

At press time, he said that his pump price for diesel is P29.70 per liter, while for gasoline (extra) is P43.85.

Compared to the pump price in Naga City, Shell sells its diesel fuel at 30.85, premium gasoline at P40.05 and unleaded at P44.05.

Petron Gas Station in Naga City sells diesel fuel at P30.85, premium gasoline at P44.95 and unleaded at P43, 95.

If the selling price of crude oil in Sipocot is compared to the price in Naga City, there is a difference of P1.15 per liter.

It, however, affects tremendously his margin of profit, he finally declared.
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