'Big 3' controls 85% of retail gas stations
LOPSIDED: It is not the final solution, but the suggestion of former senator Ernesto Herrera to stop issuing permits to the Big 3 oil companies to open more retail stations could help loosen their 85-percent control of the market for petroleum products.
Herrera said the Department of Energy should give more permits for the retail outlets of the small players to level the field, promote fair competition and lower fuel prices.
The downstream oil industry has been deregulated. Pricing is left to the sellers to decide, so whoever control the outlets are able to dictate pump prices regardless of the cost of crude oil in the world market and other input factors.
With the Big 3 — Petron Corp., Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc. (now Chevron Philippines Inc.) — controlling 85 percent of the retail stations, they can charge high regardless of the selling prices of minority retailers.
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BIG 3 PILE: Based on data gathered by the Trade Union Congress of the Philippines, Petron holds 40 percent of the market (P212.932 billion in revenues), followed by Pilipinas Shell with 30 percent (P164.703 billion), and Chevron 15 percent (P77.888 billion).
The small players have 15 percent (P82.27 billion). Among them are Total Philippines Corp., Oilink International Corp., Seaoil Philippines Inc., Filoil Gas Co. Inc., Unioil Petroleum Philippines Inc., Eastern Petroleum Corp. and Filpride Resources Inc.
Herrera, who is TUCP secretary-general, said the Big 3 piled up P42 million in combined daily net profits in 2007.
Shell posted a net profit of P6.355 billion in 2007, up 54.1 percent from P4.123 billion in 2006. Petron reported a net profit of P6.113 billion in 2007, up 2.8 percent from P5.944 billion in 2006. Yet they still claim “underrecoveries.”
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P50-M DAILY PROFITS: The Big 3 raked in P15.319 billion in aggregate net profits in 2007. Herrera said the three giants could easily earn P50 million in daily profits this year.
He cited a regulatory filing showing that Chevron booked a net income of P2.851 billion in 2007, up P106 million or 3.9 percent compared to the P2.745 billion it posted in 2006.
Chevron is the least regulated among the Big 3, he said, because it does not operate a refinery anymore, unlike Shell and Petron.
It merely operates an import terminal for refined oil products, selling them through company-owned or franchised service stations.
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TEACHERS’ LAPTOPS: Many public school teachers have asked Postscript how they could avail themselves of affordable laptops supposed to be sold to them after they pass an on-line screening under a project of the Department of Education.
The answer is “Not yet.” It turned out that while there was such an exciting Laptop for Teachers Program (LT4T), the DepEd announcement was a bit early. Some of the details are still being worked out.
The average price of the laptop is P30,000, but two suppliers are willing to give subsidies that will slash the cash-out of the teacher-buyers. They are Acer (50-percent subsidy) and Neo (30-percent).
“Adopt-a-School” Executive Director Mari Paul Soriano clarified that Microsoft’s Windows Home Basic operating system will not be sold to the teachers at $7, as earlier reported by DepEd. It will be bundled with the laptops’ free software.
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SCREENING: Through DepEd’s arrangement with the Land Bank of the Philippines, teachers can pay through easy salary deductions for three years at zero interest.
But teachers must satisfy criteria to be set by DepEd. For instance, they must be full-time employees and should not be retiring in two years.
There is also need for a certification examination to insure that only the deserving get a laptop pre-installed with lesson plans, interactive teaching guides and other educational applications to make instruction more interesting and effective.
The screening is understandable. Imagine if a teacher is allowed to buy a laptop at a 50-percent subsidy or discount — and does not use it for her class but for the home use of her children?
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PARTNERS CITED: Education Secretary Jesli Lapus praised Microsoft for being a “longtime dedicated partner” of the department.
“Microsoft’s participation, together with Acer and Neo, is a major step for both private sector participation and DepEd’s ICT program,” he said. “We look forward to working with other members of the ICT community to help us enhance teaching and learning in public schools, particularly through their support of Adopt-a-School.”
Michelle Casio, Microsoft academic programs manager, said: “Through Partners in Learning, we are partnering with the Adopt-a-School and Laptop for Teachers programs, to give Filipino educators access to resources that help upgrade the teaching process and learning experience.”
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BLOODIED MEDIA: After another radio commentator was murdered last Dec. 2, the International Federation of Journalists joined the National Union of Journalists of the Philippines and local media in demanding that government explain the “lack of protection for journalists.”
Leo Luna Mila, 35, commentator of Radyo Natin, was shot dead at 7 p.m. as he arrived at the radio station in Barangay Poblacion in San Roque, Northern Samar. He is known for his hard-hitting political commentaries.
Mila is the seventh journalist killed in 2008, and the 62nd murdered during President Arroyo’s seven years in office. Of the journalists killed in the past year, five were radio broadcasters.
Another Radyo Natin journalist, Arecio Padrigao, was shot dead last Nov. 17 in Misamis Oriental by two motorcycle-riding assailants.