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Govt told to stop Big 3 from expanding outlets


MANILA, Philippines - The Trade Union Congress of the Philippines (TUCP) has asked the government to stop the Big 3 from expanding their retail outlets. In a statement Sunday, TUCP said it has urged the Department of Energy to deny the Big 3 permits for additional retail outlets. TUCP Secretary General Ernesto Herrera said he believes the move would stop the oil firms from manipulating prices. Petron Corp., Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc. (now Chevron Philippines Inc.) are collectively known as the Big 3. "The DOE should issue permits for new service stations only to the smaller independent oil firms. This is one sure way to purposely lessen the Big 3's domination of the local market, truly promote free and fair competition and safeguard consumers from potential pricing abuses," Herrera said. The former senator said that if the Big 3 would continue to dominate the local market, consumers would remain vulnerable to potential price manipulation and other unfair trade practices. According to TUCP, Petron, Shell and Chevron command 85 percent of the local market for petroleum products. The rest of the market is cornered by several smaller independent entities such as Total Philippines Corp., Oilink International Corp., Seaoil Philippines Inc., Filoil Gas Co. Inc., Unioil Petroleum Philippines Inc., Eastern Petroleum Corp. and Filpride Resources Inc., among others. Based on their 2007 gross revenues, Petron rules 40 percent of the local market for petroleum products (P212.932 billion in revenue), Pilipinas Shell controls 30 percent (P164.703 billion) and Chevron with 15 percent (P77.888 billion). Small independent players hold a measly 15 percent (P82.27 billion). Herrera said that the Big 3 piled up P42 million in combined net profits every day in 2007. He added that the Big 3 raked in P15.319 billion in aggregate net profits in 2007 alone and that based on their preliminary returns in the first semester, they could easily post around P50 million in daily profits this year. Sen. Manuel "Mar" Roxas II of the Senate Committee on Trade and Commerce on Friday said that pump prices of unleaded gasoline “should cost P10 less per liter." However, the Roxas said that the Big 3 were still selling unleaded gasoline at P35. - Mikhaela de Leon, GMANews.TV
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