Senator calls for continued pressure on oil firms to lower prices

MANILA, Philippines - Senator Loren Legarda on Tuesday urged the Departments of Energy (DoE) and Trade and Industry (DTI) to pressure oil firms, particularly the major players, to lower their prices nationwide and not just in areas where small players are also operating. "Big oil players must not be allowed to selectively cut prices in response to market challenges as it is a form of price discrimination to consumers," Legarda said in a press statement. She said that if big companies can lower the price of gas and diesel in areas where smaller oil firms challenge their market presence, there is no reason the former cannot cut prices across the board. Legarda noted that during the holidays, a major player along President Diosdado Macapagal Boulevard in Pasay City cut the price of its unleaded gas to P31 per liter to compete with a dealer of a small oil company selling the same product for P29 per liter. She said that in the other outlets of the same major oil player, unleaded gas was sold at P33 per liter. "Selective price matching is discriminatory to consumers outside of the selling areas where competition is high such as jeepney drivers and operators whose routs are not covered by the franchise areas of independent firms," Legarda said. She added that different pump prices give the consumers the idea that big players are not really lowering their prices. The senator urged oil companies to practice corporate social responsibility especially with the country and the rest of the world facing uncertainties due to global recession. Legarda said the oil firms should remember that their generation of profit must be balanced with the impact their pricing schemes has on consumers and the general public. - Amita Legaspi, GMANews.TV