Energy rates and prices of basic commodities won’t go down in Cebu anytime soon despite the decline in global oil prices.
Engr. Dennis Verallo, head of the utility economics department of the Visayan Electric Co. (Veco) said they use mostly coal instead of diesel as their fuel. He said diesel covers only one percent of the total cost of power.
“That’s why in the May 2014, the rate is P6.10 per kilowatt hour and this month the rate is P5.15 per kilowatt hour or almost one peso less for the past eight months,” he said.
The Department of Trade and Industry in Central Visayas (DTI-7) said they were still implementing a price freeze on basic commodities in the aftermath of typhoon Seniang.
DTI-7 information officer Jojie Villamor said the reduced Suggested Retail Price (SRP) on goods due to lower oil prices is not yet implemented since retailers would still be conducting an inventory after the price freeze.
Pricing
“The pricing usually is based on supply and demand so we don´t have a hold on the supply and demand. They’re given the freedom to adjust the pricing,” Villamor said.
Villamor said the price freeze started last December 12 and it would last for 60 days or until Feb. 7. By then the prices of commodities may rise, she said.
Engr. Saul Gonzales, chief of the Energy Industry Management Division of the Department of Energy (DOE), said the impact of reduced oil prices is felt through lower fare rates for passenger jeepneys.
“I hope most of us would save on energy instead of wasting power because the lower oil prices won’t last for long,” he said.
Teresa Chan, Cebu Chamber of Commerce and Industry (CCCI) president, said the decrease in oil prices means businesses would adjust prices for their products and services to encourage consumer spending.
“About 90 percent of our fuel consumption is driven by importation so the lower oil prices will affect our balance of payment and this will be good for us because we will spend dollars to get the same amount of fuel or oil,¨ she said.