The province’s biggest fuel supplier, Powerzone Petroleum Products Inc., has lowered pump prices for its fuel products by an average of 16 percent in what a source described as a business decision responding to a competitive situation.
In an advisory to its outlets last June 21, 2025, the company announced considerably cheaper pump prices effective that day: diesel, P66.50 per liter; regular gasoline, P66.50 per liter; Premium 97, P70.08 per liters; and Premium 97, P76.50 per liter.
The new prices for diesel and gasoline are lower by 34 centavos and P1.08, respectively, compared to the pump prices at Silangan, Ultragas and Gelo’s Go-Fuel.
The cheaper premium gasoline at Powerzone, however, is a bit more expensive, by exactly one peso, compared to that sold by its three competitors.
Prior to the advisory, the pump prices at Powerzone were higher than its rivals by an average of 18 percent.
Although the management had been implementing a discount scheme, giving the motorist a P50 rebate for every P1,000 worth of fuel bought, the discount amounted to an average of 0.61 liters.
Buying from the three other fuel suppliers gave the motorist extra fuel ranging from 1.5 to 2 liters of fuel, an analysis showed.
The Powerzone move could affect the sales of the other three fuel companies and, due to a lower profit margin, could lead to the likely closures of illegal fuel retailers selling fuel by the bottle along roadsides.
The company had resisted pressure to lower its prices, especially before and during the campaign, in what is reportedly a business decision despite three members of the Cua family – Governor Joseph Cua, Vice Governor Peter Cua, and Joseph’s son Chino – running for public office.
In a meeting at the Sangguniang Panlalawigan last year, a Powerzone official maintained that it could not implement a price reduction due to its extra costs in maintaining adequate volume of fuel at its depot, among others.
Capitalizing mainly on the issue of high fuel prices as well as purported business monopoly and the low buying price of abaca fiber, political opponents led by former Catanduanes State University president Patrick Alain Azanza scored a significant victory in the May 12 local elections.
Data sourced from the Department of Energy (DOE) shows that Catanduanes has a single oil depot, owned and operated by Powerzone, with a fuel working capacity of around 2.58 million liters.
The other oil depots in the Bicol region are in Masbate with two and total capacity of 4.32 million liters while the rest are in Camarines Sur that accounts for about 84 percent of the total supply in the region.
The DOE said there is no oil import terminal in Bicol, which means that the depots are procuring their supplies from bulk suppliers in Luzon.
In Catanduanes, a total of 25 gasoline stations were registered with the energy department as of June 2024: Powerzone with nine (9), Silangan Trading with three (3) and Island Gasoline Station with two (2), with the rest registered to different business entities.
According to the DOE report, Powerzone supplies fuel to eight (8) independent retailers in addition to its own nine (9) stations, accounting for nearly 70 percent of the island’s retailers.
On the other hand, Bicol Petroleum Distributor supplies to three (3) Catanduanes stations, it stated. The supplier of the remaining five gasoline stations was not identified.
Based on the monitoring conducted regularly by the Oil Industry Management Bureau (OIMB), Catanduanes was determined to have the highest prices for both gasoline and diesel in Bicol last year.
It confirmed that the estimated “industry take” for gasoline in Catanduanes was higher by at least P8.00 per liter compared to that of Masbate and by P10 to P19 per liter than that of mainland provinces.
The “industry take” comprises the costs that the players in the oil industry incur throughout the domestic supply chain, from the import terminal down to the gas stations. The costs include hauling, shipping, storage and other operating costs plus the profit margin.
“Given the isolated location of Catanduanes and distance from the mainland, gasoline retailers have limited options and access to nearby bulk suppliers,” the DOE emphasized. “Thus, the situation provides a high probability of price similarities. Moreover, the unique retail market situations in each key area matter in terms of the cost differences.
It clarified that the government has no control over oil prices due to Republic Act 9479, or the “Downstream Oil Industry Deregulation Act of 1998,” which allowed market forces to dictate prices.
However, it added, the DOE ensures continuous supply of quality and right quantity of petroleum products, by conducting regular inspection in the bulk facilities and retail outlets, for the benefit of the consuming public.
It encouraged consumers to be vigilant and exercise their power of choice to get their money’s worth.