Fuel prices: Cebu higher than Dumaguete

Amid the hoopla brought about by the state visit of President Duterte to China, even frequent travelers shuttling between the provinces of Cebu and Negros Oriental must have been so preoccupied and must have overlooked the substantial disparity between the fuel prices in Dumaguete City (Negros Oriental) and Metro Cebu. 

  The difference is a head-turning average of ?5.00, with Dumaguete’s gasoline prices hovering in the middle ?30s and that of Metro Cebu in the ?40s or almost. This is a development I discovered when I gassed up in Dumaguete the other weekend during my trip to the Province of Negros Oriental. 

  Thus, we may ask, “Are gas retailers in Dumaguete or Negros Oriental more ethical than that of Metro Cebu?”  Such question is really apt because if the price raises are based on the global price movements, then that of Dumaguete or Negros Oriental are more appropriate.   Why? Knowing fully well that our supplies are all imported, it shall take about two weeks for new oil purchases to arrive. Therefore, raising it right away (like what the Metro Cebu retailers did) has no basis at all. 

Truth be told, driven by greed, some of our retailers refuse to be fair and simply cash in or take advantage in all situations. As observed, as clear as daylight, when global oil prices go up, automatically, some oil retailers raise their prices not later than tomorrow. As if they just purchased their inventories today. When prices go down, these same retailers do not reduce prices automatically. Well, logically, because what they have in their tanks were purchased when prices were still high. Simply put, they come straight when global prices go down but are cheats when prices go up.

Given this scenario, price manipulation is possible. So that, it should be very appropriate for the Department of Justice (DOJ), through the National Bureau of Investigation, to look into such malpractices, such as, hoarding, profiteering and cartel-like activities. These are malpractices that were so prevalent in the past and so pervasive in times of calamities or global price changes.

Section 5 of Republic Act No. 7581, otherwise referred to as the "Price Act", is so explicit as far as these “illegal acts of price manipulation” is concerned.  It considers unlawful, such acts as, hoarding (which is the undue accumulation by a person or combination of persons of any basic commodity beyond his or their normal inventory levels or the unreasonable limitation); profiteering (which is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth); and cartel (which is an agreement between two or more persons to artificially and unreasonably increase or manipulate their prices).

Of the aforementioned malpractices, hoarding and profiteering can be easily done through ocular inspection and surveillances. Cartel is quite difficult.  However, knowing fully well that the same DOJ (through the NBI) is in its fold the Office for Competition, then, any cartel-like practices can be effectively investigated.  To recall, the Office for Competition (created through Executive Order No. 45, series of 2011) was established to, among others, investigate all cases involving violations of competition laws; enforce competition policies and laws to protect consumers from abusive, fraudulent, or harmful corrupt business practices; and supervise competition in markets by ensuring that prohibitions and requirements of competition laws are adhered to. Obviously therefore, if DOJ renders its task honestly and effectively, cartel-like practices can be easily detected.  

Obviously, therefore, the law is broadly complete. It is just that maybe, some unscrupulous businessmen are just toying with it and have unduly taken advantage of the general public’s helplessness. 

  On the other hand, however, if we have to entertain the idea that some disgruntled sectors maybe at it, our laws and our law enforcers may not be ready for it. What if the shortage (whether artificial or not) isn’t done by businessmen but by rogue politicians who will try to divert the citizens’ attention? Definitely, they won’t pay businessmen for them to raise prices or for hoarding or to even collude among themselves. But, as customers (and with the suppliers’ cooperation), they can always buy in bulk and hide these somewhere. They are filthy rich, remember? Consequently, shortages happen and prices go up.

So that, even if we have to bring the law to perfection, there is no assurance that malpractices (like cartel, etc.) may no longer exist. Truth to tell, we are known all over the globe as friendly and hospitable. Though such trait is admirable, its downside, however, is inexplicably outrageous.

  Our yielding nature has been a thorn as we give in so easily even to the most unethical proposition. Such submissive attitude is more often abused by people who are too selfish and too wanting to rule, dictate and dominate. Sadly, these are characteristics that happen to be requisites for a cartel or any unethical/illegal practices to exist.