Baguio Congressman Domogan said oil prices in Baguio are exorbitant.

BAGUIO CITY — Baguio City Congressman Mauricio G. Domogan, during an engagement with the Baguio media on 4 April, emphasized that while he supports the right of businesses to profit, the current prices are unfair to consumers who are also dealing with the rising costs of other goods affected by fuel rates, especially in Baguio.

He stated that the price of fuel in Baguio remains significantly higher than in neighboring areas such as San Fernando and Rosario, both in La Union, with differences often reaching at least P10 per liter. Domogan noted that this price gap has been a subject of inquiry since his time as a local official, yet the disparity continues to burden residents.

The congressman characterized the current pricing as exorbitant, especially when compared to more distant locations like the municipality of Abatan, Benguet, where fuel is cheaper. He explained that transport costs do not justify the high prices in Baguio, as his data shows that freight costs do not exceed P2 per liter. He argued that the profit margins applied by dealers in the city are far beyond reasonable levels given the actual logistics involved in bringing fuel up the mountains.

To provide a long-term solution, Domogan has recently filed a bill to amend the price control law. He explained that the Department of Trade and Industry (DTI) currently cannot intervene in fuel pricing because petroleum products are not covered by the existing price control mandate. By including fuel in this law, the government would have the legal framework to monitor and regulate prices when they become unreasonable. Domogan confirmed that the proposal has undergone two hearings with representatives from the DTI and the Department of Energy.

He mentioned that while Secretary Garin of the Department of Energy (DOE) expressed a positive outlook on the matter, there is still no definite answer regarding the exact fair freight rate per kilometer. The congressman also expressed that he is in favor of repealing the oil deregulation law so the government will have control over the prices of oil and oil products, which he sees as a big help not only to drivers and operators but to the whole citizenry.

He also expressed that while the suspension of excise tax is good, it would be better if the Value Added Tax (VAT) on oil prices is also suspended, if not removed.