Consumer power against fuel hikes

BEHIND THE SCENES
Alfred P. Dizon

BAGUIO CITY – For the “oil cartel” to come to its senses and lower their prices and regulate its greed, there is a need for transport groups to unite, exercise consumer power and buy fuel by volume, from one supplier or oil company.

This is the alternative solution the 1-UTAK Party List is pushing to address continuing increase in prices of fuel products that is besetting the sector.

1-UTAK Party List national chairman Vigor Mendoza II, in a press conference here last week said petitions against fare hikeswere part of a solution they were looking into.

The group was in Baguio for the second stop of their scheduled 7-leg transport sector conference in various parts of the country.

“Our objective in meeting the transport sector stakeholders here in Northern Luzon, as well as in the other parts of the country, is simple. With the continuing increase on the price of fuel products, we want to know the situation in every area, if there is a need for a fare hike and what alternative solution that we can do, in lieu of a fare increase,” Mendoza said.

He added they were willing to support the transport sector all the way, in pushing for such alternative by encouraging transport groups to unite and exercise consumer power by buying fuel from a single oil company and take advantage of volume sale.

According to Mendoza, similar talks are also already being undertaken by various transport groups in Metro Manila. After Mindanao and Northern Luzon, they will also advocate for such alternative project in other parts of the country.

“Through this method, the oil companies will respond. We will test what they are calling a free market system. If there is true market competition in the ground there will be an oil company that will respond, if no company calls (the demand for volume buying) then it will be a clear and convincing evidence that there is collusion among oil companies, which will also be the evidence that we will present for the nullification of the Oil Deregulation Law, as we
already have a pending petition for it at the Regional Trial Court of Bacolod,” Mendoza disclosed.

“Whatever the result of such exercise, we can prove one thing - whether there is really an existing free market or true competition or if there is collusion among oil companies (in relation to the increase in fuel prices.”

Meantime, Mendoza also affirmed they have a pending petition for a fare hike in Manila for a P2 increase in the first four kilometers and an increase from P1.40 to P1.75 per succeeding kilometers that will be imposed in the National Capital Region, and Regions III and IV.

According to Mendoza, similar fare hike petitions will also be filed in Baguio and other parts of the Cordillera soon if there will be no alternative solutions that can be made on continuous increase in fuel prices.

Mendoza said they were also willing to withdraw their petition for a fare hike, if the government will immediately implement the long standing transport sector modernization program and that they will air such position in the scheduled fare hike petition hearing at the Land Transportation Franchising and Regulatory Board Central Office hearing slated Dec. 8.