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Yumul’s CUC fuel supply bill receives less than enthusiastic response
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Posted on Feb 05 2006
A lawmaker’s proposal to have the Commonwealth Utilities Corp. selling fuel supply to independent service stations is receiving a less-than-enthusiastic response from the administration and other lawmakers.
Acting Gov. Timothy P. Villagomez and some members of the House of Representatives agree that House Bill 15-48 was an inventive concept, but they have yet to form a categorical position on the proposal.
H.B. 15-48, authored by Rep. Ray Yumul, seeks to allow CUC to sell motor vehicle fuel to independent dealers.
CUC, which has a two-year contract with Mobil Oil Marianas, is buying power generation fuel at a rate lower than pump prices. Yumul said CUC could assist the public by buying more fuel than the power plants need and selling the extra to service stations at the same low price.
“It’s a good bill, but it needs fine-tuning. If CUC is buying cheaper fuel, why not pass on the savings to the public?” Villagomez said.
Asked whether the administration would support the move, the acting governor said, “Any bill has merit to it. It’s only worthwhile to look at it.”
House Speaker Oscar Babauta described H.B. 15-48 as “a commendable approach” to coping with the escalating fuel prices.
But he expressed reservation on the issue of whether CUC has the authority to wholesale fuel supply. “That needs to be studied,” Babauta said.
Rep. Francisco Dela Cruz, chairman of the House committee on public utilities, transportation and communications, deferred making a comment, saying he had yet to look at the bill in its entirety.
H.B. 15-48 will undergo review by the PUTC committee.
Yumul admitted Thursday that the bill was still a work in progress. There are several aspects that still need to be considered. These include CUC’s authority to sell fuel, the utility’s lack of storage facility, and the possibility of having the bill cover aviation fuel.
