CABANATUAN CITY – The price of diesel in gas stations in at least two cities and three towns in Nueva Ecija was down to P28.50 per liter to the delight of diesel-fed vehicles that included the farmers’ hand tractors.
This unusually low diesel price was noted in gas stations along the Maharlika Highway in this city, Gapan City, San Leonardo, Talavera and Sto. Domingo towns these last few days.
Only three weeks ago, the same gas stations were seen selling their diesel fuel at P30.50 to P31 per liter. Still, this price was much lower than the current P32 or more per liter offered by the gas stations in Metro Manila and Bulacan areas.
In August last year, when the price of crude oil in the world market was selling at $150 dollars or more per barrel, diesel was being sold at P58 per liter. There was speculation then that the price would hurtle to more than P70 per liter as the world price per barrel of crude oil was predicted to breach the US$200 per barrel mark.
“It is a cut-throat pricing competition obtaining here,” an accredited dealer here of a major oil player said. “We had to follow the pricing trend otherwise we will be out of business,” he added.
The gas station operator, who requested not to be identified, said his mother company is already subsidizing the cost of the diesel his station is selling.
“Wala na po talagang kita sa halagang iyon. Malaki po kasi ang aming overhead expense kumpara sa ibang maliliit na gas stations (We really don’t get a margin of profit for this prevailing market price. We are saddled with big overhead expense compared to the other small gas stations),” he said.
He said that it was the small gas stations, which suddenly sprouted here and in some other cities and towns of Nueva Ecija, which caused the “price war” of diesel. He added that these stations sourced out their supply from a number of independent oil players which sell engine fuels at prices much lower than those offered by the major oil players.
He also said that whereas he keeps a big number of employees, pays big rent for the big lot where his station is situated, and add frills to make his station more presentable, the operators of small gas stations keep their operating expense to a minimum.
“Kaya nila talagang pababain ang presyo ng diesel nila dahil maliit lang ang gastos nila. Gumagana talaga dito ngayon ang layunin ng batas sa oil deregulation (They can really bring down the price of their diesel because their expenses are very low. The essence of the oil deregulation law is really working here),” he said.
As a result of the low-priced diesel offered here, several buses, trucks and utility vehicles from other places, including those from the Cagayan Valley region, were seen patronizing the gas stations here.
Particularly happy about the low price of diesel are the rice farmers who are now in the thick of their land preparation. The low diesel price meant that their expense for hiring hand tractors will be lessened.
Last cropping season, when the price of diesel was high, hand tractor operators charged a minimum of P4,500 per hectare land cultivation.
Other gas stations in the northern part of Nueva Ecija and beyond were reported still selling diesel between P33.90 to P34. 29 per liter. They are expected to follow suit as their customers begin to dwindle.
While the diesel price plunged here, gasoline fuel was being sold in gas stations at the following prices: regular, P29.50 to P30.50; premium, P33.60; and unleaded P32 to P33.30 per liter.
This unusually low diesel price was noted in gas stations along the Maharlika Highway in this city, Gapan City, San Leonardo, Talavera and Sto. Domingo towns these last few days.
Only three weeks ago, the same gas stations were seen selling their diesel fuel at P30.50 to P31 per liter. Still, this price was much lower than the current P32 or more per liter offered by the gas stations in Metro Manila and Bulacan areas.
In August last year, when the price of crude oil in the world market was selling at $150 dollars or more per barrel, diesel was being sold at P58 per liter. There was speculation then that the price would hurtle to more than P70 per liter as the world price per barrel of crude oil was predicted to breach the US$200 per barrel mark.
“It is a cut-throat pricing competition obtaining here,” an accredited dealer here of a major oil player said. “We had to follow the pricing trend otherwise we will be out of business,” he added.
The gas station operator, who requested not to be identified, said his mother company is already subsidizing the cost of the diesel his station is selling.
“Wala na po talagang kita sa halagang iyon. Malaki po kasi ang aming overhead expense kumpara sa ibang maliliit na gas stations (We really don’t get a margin of profit for this prevailing market price. We are saddled with big overhead expense compared to the other small gas stations),” he said.
He said that it was the small gas stations, which suddenly sprouted here and in some other cities and towns of Nueva Ecija, which caused the “price war” of diesel. He added that these stations sourced out their supply from a number of independent oil players which sell engine fuels at prices much lower than those offered by the major oil players.
He also said that whereas he keeps a big number of employees, pays big rent for the big lot where his station is situated, and add frills to make his station more presentable, the operators of small gas stations keep their operating expense to a minimum.
“Kaya nila talagang pababain ang presyo ng diesel nila dahil maliit lang ang gastos nila. Gumagana talaga dito ngayon ang layunin ng batas sa oil deregulation (They can really bring down the price of their diesel because their expenses are very low. The essence of the oil deregulation law is really working here),” he said.
As a result of the low-priced diesel offered here, several buses, trucks and utility vehicles from other places, including those from the Cagayan Valley region, were seen patronizing the gas stations here.
Particularly happy about the low price of diesel are the rice farmers who are now in the thick of their land preparation. The low diesel price meant that their expense for hiring hand tractors will be lessened.
Last cropping season, when the price of diesel was high, hand tractor operators charged a minimum of P4,500 per hectare land cultivation.
Other gas stations in the northern part of Nueva Ecija and beyond were reported still selling diesel between P33.90 to P34. 29 per liter. They are expected to follow suit as their customers begin to dwindle.
While the diesel price plunged here, gasoline fuel was being sold in gas stations at the following prices: regular, P29.50 to P30.50; premium, P33.60; and unleaded P32 to P33.30 per liter.
