There is no doubt that searing fuel prices have hit the fishing industry badly all over the world. In Philippines the tuna industry is in a state of delirium as producers are mulling to use Liquefied Petroleum Gas (LPG) to cut on operational costs. Roger R. Lim Sr., vice president of the Alliance of Tuna Handliners, told that if diesel and gasoline prices will continue to hike, many operators of fishing boats that catch large tuna stocks maybe force to suspend operations sooner.
It is said that the prices of diesel in Central Mindanao region, where General Santos City is its economic hub, have reached to its all time high. Lim, the so-called “Tuna King” here for owning a large tuna fishing fleet, informed that at normal fishing conditions, profit margins plunged this year to about five to 10 percent from 25 percent to 30 percent the previous year due to the skyrocketing prices of diesel and gasoline prices. He further said that he is planning to use LPG for his auxiliary boats to see if it can cut down cost.
Tuna industry in this region has an estimated annual value of P4.5 billion. It is composed of over 2,500 handline boats (locally called pump boats) and employs at least 40,000 fishermen, with an estimated annual landing of over 30,000 metric tons of high value tuna, industry data showed.
According to Lima tuna producers cannot increase the price of tuna as buyers dictate the market price in the domestic market. Miguel B. Lamberte, Philippine Fisheries Development Authority manager, confirmed that the skyrocketing fuel prices have taken its toll on the volume of fish landing at the General Santos City Fish Port Complex. He told that daily fish unloading at the fish port complex in the first four months of 2008 dropped by 26 percent to 190 metric tons from 256 MT daily average last year.
