Question 2: Small Players and the Big Three in the Philippine Petroleum Industry

Prior to the deregulation of the Petroleum Industry in the Philippines, there were only three players, i.e., Caltex,Petron, and Shell (Big 3). There is only one market price followed by the Big 3. After the deregulation, other independent players were allowed to sell also petroleum products. The independent players are selling gasoline by as much as P2 to P4 per liter cheaper than the Big 3. After so many years, this is still the situation. If the market is willing to pay P45 per liter of unleaded gasoline, then why do independent players keep on selling at about P41 per liter? If a liter of unleaded gasoline is available at P41 per liter, then why do people still buy unleaded gasoline at P45 per liter?