LAWMAKERS are proposing an in-depth investigation into the reported massive smuggling of fuel into the country.

This after Petron Corp. president and Chief Executive Officer Ramon Ang hinted alleged illegal activities perpetuated by some independent players.

Appearing before the House committee on ways and means virtual hearing, Ang said some independent oil companies are selling at a cheaper price or at an average of P10 per liter lower than the major distributors like SMC’s Petron.

While not specifying that smuggling was involved, lawmakers took Ang’s statements during the committee meeting as a hint that smuggling was involved.

“I am alarmed with the smuggling. There is a huge amount of smuggling being done before our eyes,” Isabela Rep. Antonio Albano said as he asked the Bureau of Customs (BoC) of its actions to curb this illegal activity.

For her part, AAMBIS OWA and committee vice chairperson Rep. Sharon Garin said Ang’s revelation should be looked into.

“The topic raised by San Miguel’s RSA that ‘efficiency’ is the reason why new players can sell lower, then there is a question on where it comes from,” she said.

“As a side issue we can look into the efficiency of other companies. Instead of making a sacrifice, it is also possible that we check on the efficiency of other companies within the jurisdiction of the committee,” Garin added.

Ang, who was invited as resource speaker, said the new players have grown to 40 percent of the whole industry and have cornered at least 40 percent of the sales because the lower priced fuel they offer.

“Kung naghahanap ng solusyon, doon na sila bumili. Mababa siguro ang overhead nila,” the businessman said.

Ang added that public utility vehicle drivers rarely patronize big players because they offer higher priced products compared to the independent stations.

He recounted advising Zamboanga City Mayor Beng Climaco to direct “jeepney drivers, tricycle drivers to buy from new players”, saying that they sell their products cheap.

“I don’t think the government can afford to suspend (excise) taxes. But to answer the request of many na ibaba ang prices, nasagot na natin agad. The new players have very, very low overhead, they are very efficient,” he revealed.

While evading Baguio City Rep. Mark Go’s request for an explanation on why Ang considers news players “can be more efficient” than the big players, the SMC CEO pointed out that “nobody can monitor” the independent players.

“Therefore, they are very efficient and that is why inaagawan kami ng market share. They are now 40 percent in the industry,” he stated.

The Committee on Ways and Means conducted its initial deliberations on the six pending legislative measures proposing for the suspension of excise tax collections on fuel in view of the continued rise in prices of petroleum products.