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City-run gas station seen as fix to fuel procurement issues

The renewed push to establish a city government-owned gasoline station in Puerto Princesa is now being carried mainly by Vice Mayor Jimbo Maristela and Councilor Elgin Damasco, who say the move is key to cutting fuel costs and fixing problems in the city’s fuel procurement system.

Maristela raised the issue during his floor speech at the January 12 session of the Sangguniang Panlungsod, pointing to what he described as unacceptably high fuel prices charged to the city by its suppliers.

He said the prices reflected in purchase requests are far higher than the posted pump prices at gasoline stations, even though the city already has contracts setting diesel at ₱66 per liter and gasoline at ₱66.75 per liter.

“Ako ay lubhang nagtataka at nagulat. Ito ba ay pinag-aaralan ng ating Accounting bago pirmahan na dapat ang purchase request ay naaayon doon sa billing statement ng mga gasolinahan. Pero hindi nangyayari kaya ibig sabihin, iniisahan tayo ng mga supplier ng gasolina sa Puerto Princesa,” Maristela said.

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The vice mayor said the current system allows fuel suppliers to dictate the prices placed in purchase requests even before these reach the Bids and Awards Committee, casting doubt on whether bidding still ensures the best price for the city.

“Itigil na ang practice na kailangan kunin muna ang gustong ipalagay ng fuel supplier sa purchase request bago nila ito tanggapin,” he said.

“Bakit kailangan pa ang pagsang-ayon ng supplier ng fuel, araw-araw namang nakapaskil sa mga gas station ang presyo ng krudo at gasolina. Paano magiging competitive ang bidding pag ganito ang sistema,” he added.

Maristela said establishing a city government-owned gasoline station is one way to stop the practice, noting that the city spends hundreds of millions of pesos on fuel every year.

“Gumawa tayo ng aksyon para matigil na ang ganitong sistema,” he said.

Damasco, in a measure he authored in 2022, already called for the construction of city-run gasoline stations.

He said the proposal has long been approved but has not moved forward.

“Noon pa man, alam ninyo na talagang sinasabi ko na masyadong mahal ang presyo ng gasolina at krudo sa Puerto Princesa. Nagawa ng ibang LGU at magagawa din natin. At kung magawa ‘yan, ang susundan nila at magdi-dikta ngayon sa presyo ng gasolina at krudo sa Puerto Princesa ay ang city government,” Damasco said then.

Damasco explained before that aside from lowering fuel expenses, a city-owned gasoline station could also become an income-generating project and help influence fuel prices in the city.

The proposal to establish a city government-owned gasoline station, along with concerns on fuel procurement, is set to be discussed further by the Committee on Energy and the Committee on Trade and Industry of the City Council.

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