MANILA, Philippines (AP) — Filipino motorcycle enthusiast John Aldwin Bagabagon has driven more smoothly than many other local motorcyclists and drivers this year, as domestic fuel hit record highs.
Bagabagon, 35, and his family circle are among the 200,000 consumers who are turning to a local app for cheap bulk fuel credits, saving about 50% on their gas purchases in the past 4 months.
“I save a lot, especially now that gas costs are rising every week,” Bagabagon said.
Users of the PriceLOCQ app can take inventory of fuel at a constant value by converting purchases into virtual credits that are then redeemed at SEAOIL Philippines gas stations.
Mark Yu, who introduced the PriceLOCQ app in 2020 and whose circle of relatives owns the independent fuel company SEAOIL, says use of the app has “skyrocketed” since costs began to rise this year, especially after the Russian invasion of Ukraine disrupted global oil markets.
On-app gasoline sales in a single day in mid-March reached 2 million liters, matching volumes for the entire month of February as consumers scrambled to anticipate price spikes.
Half of PriceLOCQ’s customers are new customers to SEAOIL, which holds about 6% of the retail fuel market, said Yu, who is also SEAOIL’s chief financial officer.
PriceLOCQ is the only app of its kind in the region, Yu said. Yu’s private company, LOCQ, is everything and partners with hedging corporations to offset risks in a context of value volatility.
The Philippines imports more than 90% of its annual fuel needs. Pumping costs in the capital Manila, an urban agglomeration that is home to thirteen million people, have risen 30 percent for gas and 66 percent for diesel this year, according to government data. Gasoline hit a record high of 81. 85 pesos ($1. 56) consistent with the liter in mid-March 2022.
The first users of PriceLOCQ were in 2020 to buy up to six hundred liters (158. 5 gallons) of gasoline and diesel products for long-term refueling at about 20 pesos a liter. Prices lately are around 79 pesos per liter.
While it’s tempting to lock in costs in an emerging market, consumers are urged not to stockpile gasoline and buy as needed, said Bernard Flores, Pru LifeUK’s monetary representative in Manila.
The government also warned consumers to perceive the underlying dangers related to the app, adding the non-transferability of credits and the danger of buying fuel in bulk and seeing costs fall.
“It’s like the stock market where you find the desired value you prefer and block it. Whatever happens, whether values go up or down, they get blocked,” Flores said.
However, many motorists have not been discouraged, especially those who are on the roads as part of their work.
“If this app didn’t exist, we’d be suffering because. . . we use gasoline every day,” said delivery man Johnrey Omolon.
“It’s a great help. We want to prepare (for changes) when gas costs rise. – Rappler. com