BAGUIO City Rep. Mauricio Domogan is seeking an amendment to the national Price Act to bring petroleum products under government oversight, citing an artificial price gap of nearly P10 per liter between Baguio City and nearby lowland municipalities in La Union.
Under House Bill 6634, filed on Dec. 4, 2025, gasoline, diesel, kerosene, and other petroleum products would be classified under the price control and stabilization provisions of Republic Act 7581, as amended.
Currently, basic necessities and prime commodities are monitored by the Department of Trade and Industry, but fuel products remain excluded under the Downstream Oil Industry Deregulation Act of 1998.
“Unfortunately, fuel is not part of it,” Domogan said during a press conference. “That’s why our complaint here is that the price difference from Rosario to Baguio is not less than 10 pesos per liter, which we view as an exorbitant racket.”
Department of Energy audits previously revealed that hauling petroleum products from oil depots in La Union to Baguio—a distance of roughly 68 kilometers—adds as little as 18 to 50 centavos per liter in freight costs.
Despite the low transport cost, local pump prices in the highland city consistently remain 10 to 15 pesos higher per liter than in lowland towns like Rosario and San Fernando City.
Past attempts to force oil companies to unbundle their pricing components were blocked by court injunctions, leaving local officials unable to compel price reductions.
If enacted, House Bill 6634—which is set for deliberation before the House Committee on Energy—would establish mechanisms to monitor fuel distribution margins and invoke price ceilings during severe economic emergencies or unwarranted price surges. Roderick Osis
