Baguio City Prepares for Potential Fuel Supply Disruptions, Cracks Down on Price Gouging

BAGUIO CITY – Mayor Benjamin Magalong has convened meetings with fuel retailers, business leaders, and various sector representatives to proactively address potential fuel supply disruptions and escalating global oil prices stemming from ongoing conflicts in the Middle East. The city government is also intensifying its monitoring of commodity prices to prevent profiteering.

Fuel Purchase Limits and Supply Concerns

Some fuel stations in Baguio City have begun implementing voluntary limits of around 20 liters per customer as a precautionary measure to mitigate hoarding and ensure equitable distribution of fuel supplies. However, these restrictions are currently at the discretion of individual retailers, and not all stations have adopted this practice. Shell Baguio, for example, has not yet implemented fuel rationing and continues to receive regular deliveries.

Impact on Food Supply and Essential Services

Business groups have voiced concerns that any disruption in fuel supply could negatively impact the food distribution chain, particularly the delivery of essential goods like rice, poultry, and vegetables to the city. Distributors warn that reduced fuel rationing – potentially down to 10 liters per vehicle – could hinder long-distance supply runs from neighboring provinces like Pangasinan, potentially leading to shortages in local supermarkets.

Contingency Planning and Prioritization of Essential Sectors

To address potential shortages, stakeholders are collaborating to establish mechanisms that would prioritize essential sectors, including food distributors, hospitals, emergency services, and public utilities, should fuel rationing become necessary. Mayor Magalong emphasized that these efforts are part of the city’s broader contingency planning to prevent panic buying and ensure responsible fuel consumption.

National Government Assistance and Fuel Subsidies

The national government is preparing assistance for sectors potentially affected by rising fuel costs. Approximately ₱2.5 billion to ₱3.5 billion in fuel subsidies are slated for release, with a particular focus on the transport sector.

Generator Fuel and Business Permits

Addressing concerns about a scheduled citywide power interruption, Mayor Magalong clarified that gasoline stations may allow fuel purchases in containers for generator use, provided the purpose is legitimate and safety standards are adhered to. Businesses can present their business permits as proof of legitimate need.

Price Monitoring and Crackdown on Profiteering

Mayor Magalong warned businessmen against profiteering as the city government intensifies monitoring of commodity prices. The city government will cancel the business permits of traders found engaging in unfair trade practices. The Local Price Coordinating Council is strengthening coordination among concerned offices and stakeholders to closely monitor prices and respond to unusual increases. The city’s Public Information Office will regularly post price lists from the Department of Trade and Industry (DTI), Department of Agriculture (DA), and other agencies to inform the public.

Mayor Benjamin Magalong has been the mayor of Baguio since 2019, previously serving 38 years in the Philippine Constabulary and Philippine National Police (PNP).