Chatto to BIPC: study tax Incentives to new players

Wednesday 28th of March 2012

TAGBILARAN CITY, Bohol, March 24, 2012 (PIA) – Governor Edgar Chatto ordered the Bohol Investment Promotion Center (BIPC) to make feasibility studies for incentives to new fuel industry players getting to Bohol.

Chatto’s order follows the argument that the entry of new players in the fuel industry here puts up more competition to the major fuel players whom consumers accuse of monopoly and price fixing.

During the Consultative Forum on Oil Price in Region 7, the Department of Energy through Oil Industry Management Bureau chief Director Zenaida Monsada hinted that competition, as in most economic situations, create the desired effect of bringing the price down to market a product.

The idea also settled in a new industry player Filoil, represented by its Vice President Mandy Ochoa, who bared that transporting bulk fuel to Bohol and then trucking it to stations entail substantial amounts of money that could eat up profits.

He said the bulk transshipment and trucking costs entail some P3.00 for every liter of gasoline form his depots to Bohol stations.

Despite all this hassle, Ochoa said he could still make out a P2.00 per liter as profits.

According to him, Fil-oil does not have any depot in Bohol and would have to ship products to his two stations in Bohol.

Making public his desire to open up more stations to start making money for his operations here, Ochoa also shared that he has plans to put up an import terminal in Bohol so he could cut on the transshipment expenses.

He also shared that he is planning to put the facility in Loon, where he could truck his products to his refilling stations.

While sharing the need to put up more stations to recoup the expenses of running an import terminal, which would not be feasible if there are only two stations to serve, Ochoa aired his desire to widen his fuel business here so he could also put up corporate social responsibility projects.

On this, Department of Trade and Industry Regional Director Asteria Caberte told Boholanos that she would ask the DTI
to work with the BIPC for the preparation of feasibility studies on tax incentives to new industry players like Fil-oil.

The governor also said he would talk to town mayors to offer similar deals to new players so as to encourage them to put up their businesses here.

As this happened too, Chatto has pleaded to the big three fuel companies to do something to help Boholanos relative to the fuel price, which has also driven the prices of basic commodities up.

“It could really be a big help,” Chatto said. (RAHC/PIA Bohol)