Alleged Visayas fuel overpricing: Retailers told to explain

CEBU CITY, Philippines — The Department of Energy (DOE) has issued show-cause orders to several fuel retailers in the Visayas after monitoring teams found that petroleum products were being sold above the agency’s prescribed price range.

DOE Visayas Field Office Director Renante Sevilla said the orders were served to retailers in Cebu Province, Cebu City, Iloilo, and Bacolod City following recent inspections conducted by the agency.

The retailers have been directed to explain and justify the price adjustments they implemented.

READ MORE: Cebu City to probe alleged overpricing, hoarding

According to Sevilla, many establishments have already submitted official receipts and delivery documents to support their pricing.

“Most of them have presented their official receipts and delivery documents, so we were able to verify that prices had indeed increased,” Sevilla said in a recent interview.

Alleged overpricing

The DOE is currently evaluating the documents submitted by the retailers.

Businesses that fail to provide sufficient justification for their pricing may face administrative penalties, including possible closure.

To strengthen enforcement efforts, the agency has coordinated with local government units and the Philippine National Police, particularly in monitoring fuel stations located in remote areas.

The intensified monitoring comes as consumers face higher liquefied petroleum gas (LPG) prices this month.

Furthermore, LPG prices increased by as much as ₱3 per kilogram in June, the maximum adjustment allowed for the period, the DOE said.

Despite the price hike, energy officials assured the public that supply levels remain adequate.

READ MORE: DOE probes 1,000 fuel price complaints

In an earlier separate interview, DOE Energy Resource Development Bureau Usec. Alessandro Sales said the country’s LPG inventory is currently equivalent to more than 42 days of supply, significantly higher than the seven-day minimum inventory requirement.

Liquid fuel stocks are also well above mandated levels, with inventories reaching roughly three times the required volume.

The agency said the healthy inventory position has helped cushion the impact of global market uncertainties and supported the continued availability of fuel products nationwide.

In Central Visayas, Sevilla said the DOE has not recorded any supply shortages.

While adverse weather occasionally causes delays in fuel deliveries, particularly when vessels encounter heavy rains, these disruptions have not affected overall fuel availability in the region.

The DOE said it will continue conducting weekly inspections and inventory checks as part of its efforts to curb unreasonable fuel price increases and ensure a stable supply of petroleum products across the country.

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