Concerned over Baguio’s high-than-average fuel prices, the Baguio City Council has approved nine resolutions that call for price transparency, stricter monitoring of gas stations, and collaboration with national agencies to protect consumers and support local businesses.
Passed on February 9, 2025, the resolutions seek to address the city’s persistent fuel price disparities which often see gasoline and diesel priced higher than in neighboring provinces such as La Union.
Through these resolutions, the City Council is urging gasoline companies to align their prices with regional averages, seeking the conduct of regular inspections and strict calibration of fuel pumps, and requesting the Department of Energy (DOE) and Philippine Competition Commission (PCC) to investigate pricing practices that may disadvantage residents.
The City Council is also calling for the creation of a Local Fuel Price Monitoring Task Force to conduct monthly price comparisons, a study of the city government’s fuel expenses with the goal of establishing a city-owned fuel depot, and verification of business tax compliance among local gasoline stations.
The City Council is likewise extending its call to Congressman Mauricio Domogan to file a bill that will benefit vulnerable groups such as Persons with Disabilities (PWDs) in accessing government services affected by fuel and transportation costs.
This legislative initiative was prompted by a forum initiated by Councilor Edison Bilog where representatives from Caltex, DOE, and PCC answered questions by the members of the City Council.
During the forum, CALTEX representatives explained that prices follow a dictated margin set by their main office. They said they had already communicated the issue, but the head office is struggling with pricing decisions.
An analysis by the DOE comparing fuel prices in Baguio City with those in nearby towns and provinces found that the higher prices in the city are due to a mix of supply limitations, cost factors, market conditions, and local demand. According to the DOE, these factors explain the price differences and do not necessarily indicate overpricing.
To help address the observed disparities and encourage a more competitive market, the DOE recommended several measures:
establishing fuel storage facilities in or near Baguio to improve supply logistics;
providing incentives for new fuel retailers to increase competition;
implementing regular monitoring of prices, including promotions and loyalty programs, for transparency;
reviewing local operating costs that may contribute to higher prices; and
managing demand pressures by supporting alternative transportation options such as better traffic management and improved walkability. **Jordan G. Habbiling
