Published June 30, 2018, 10:00 PM By Bernie
Cahiles-Magkilat
Major sardine canning factories in
the country continue to rely on coal, which is 33 percent cheaper than bunker
fuel, as an alternative to bunker fuel to keep prices of their products low,
according to an industry official.
Roberto Valerio, executive director
of the Industrial Group of Zamboanga, said that Zamboanga city, known as the
“Sardines Capital of the Philippines,” lists at least 13 canning plants are
located in Zamboanga.
The industrial group executive said
the usage of coal mitigates the impact of external factors in the increase in
prices of commodities such as sardines, instant noodles and other processed
foods.
“Long time ago, before the effect ng
increase of petroleum products, all of them have already converted from
bunker-fired boilers to coal more than 10 years ago,” Valerio said. He added
that coal was “way, way cheaper.”
The companies have been using coal
even before the implementation of the Tax Reform for Acceleration and Inclusion
(TRAIN) law, while coconut oil producers and carrageenan plants in the region
are also using coal, Valerio said.
Major canning and oil milling
industries in the southern port city and other areas of the Philippines have
been relying on coal to fire up its boilers.
Bunker fuel costs P33.50 per liter
while coal is at P3,700 per metric. Based on the industry computation, coal is
33 percent cheaper than bunker fuel.
With its relatively cheaper and more
stable price, coal continues to help the canning industries in preventing the
price of sardines from spiking out of proportion due to other factors such as
the recent fuel price hikes.
No comments:
Post a Comment