
Originally Posted by
jojo_mouth
Yes masbarato sa CDO compared deri sa Cebu. Come to think, the refinery is in Batangas. Batangas to Cebu is shorter compared to Batangas to Cagayan route. But why Cagayan has lower price?? It is becoz of the volume of fuels they transport. Fuels bound to Cagayan is more than the fuels bound to Cebu. Using the same tanker ship capacity (for example), fuels for Cagayan is 8M liters while going to Cebu is only 6M liters. The difference in distance from origin can not overcome the cost per liter between the two individual route. It will come out the logistics cost of fuels in CDO is cheaper than in Cebu.