i guess it's all about location and cost of logistics.
Logistics: manila and some places in mindanao has big fuel depots while we in cebu don't, well, not until PTT provided the first one in Mactan last year. But it's not enough to keep the prices at par w/ manila coz the key players and the ones dictating the prices still are the big 3.
I think even GenSan has a fuel depot. another one is in Libertad, Central Mindanao.
Fuel depots provide for a more cost-efficient supply to the retailers. If we have those depots here from the big 3, there will be no reason why our prices are higher from manila.
Location: I think fuel tanker ships only goes to a pier where fuel depots are nearest. i'm talking about imported fuel. Imported fuel forms most of the bulk of our fuel requirements in the Phils. therefore, it would cost more on transporting fuel into cebu as compared to manila or some parts in mindanao. then there's the refinery also. manila has it. and it will have the same story as the fuel tanker: transporting from manila to cebu.
Last edited by giddyboy; 12-08-2008 at 02:31 PM.
How I noticed:
I flew to Manila(from Cebu) last November 25, 2008 to watch the PCCL. The price of diesel at that time in Cebu was 38.76. I noticed it was the same when I landed in Manila. I woke up November 26 reading news of a rollback on gas pump prices and true enough diesel pump price in Manila went down to 36.76. When I flew back to Cebu on November 28, I was dismayed to have noticed that no rollback in oil prices were made and diesel remained at 38.76. Another rollback was announced in the succeeding days and Cebu diesel price became 36.70++.
The point I'm making is that Cebu pump prices used to be the same as that of Manila until November 26 when Cebu stations did not effect the announced roolback
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