Taking a hint from San Miguel Corporation president and chief executive officer Ramon S. Ang, senior members of the Lower House want to launcg an inquiry into reported massive smuggling of fuel into the country.

Appearing before the House Committee on Ways and Means on Monday, Ang noted that independent players in the petroleum industry have been offering their products 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 said activity was involved.

“I am alarmed with the smuggling. There is a huge amount of smuggling being done before our eyes,” said Isabela Rep. Antonio Albano who questioned Bureau of Customs officials as to what they have done to stop the 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,” she said.

“I don’t think this is the venue to question this. The Committee on Energy is a better venue for that since the topic on hand is about the excise taxes,” she said.

The ways and means panel launched on Monday, Nov. 8 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.

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 of the lower priced fuel they offer.

“Kung naghahanap ng solusyon, doon na sila bumili. Mababa siguro ang overhead nila (If we’re looking for solution, they should buy from them. Perhaps, their overhead must be low),” the SMC chief said.

“So Mr. Chairman, if there is anything else we can do to help you address the public transport request, I think that is the best answer we can give,” he told the ways and means panel chaired by Albay Rep. Joey Sarte Salceda.

Ang said public utility vehicle drivers rarely patronize big players because they offer higher priced products if 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 government can afford to suspend (excise) taxes,. But to answer the request of many na ibaba ang prices, nasagot na natin agad (to lower prices, we have given a prompt response),” Ang said.

“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.

However, Go did not buy Ang’s claim that small or new players are selling P10 below the prices offered by Petron, Chevron and Caltex, saying that this is not true in his congressional district.