Tuesday, May 06, 2008 Firms defend newest increase in oil prices
THE Department of Energy (DOE) on Monday failed to reach a compromise agreement with oil companies that would cushion the impact of the oil price increases.
This, after oil firms such as Pilipinas Shell, Petron Corporation, Chevron formerly Caltex, Total Philippines and other independent oil players said they need to recover at least P6 more.
During a presentation held at the DOE main office in Taguig, Ed Chua, country manager and chief executive officer of Pilipinas Shell, said they need to recoup at least P6 more for diesel and P1 for gasoline.
Chua explained that the price increase they implemented being the latest was last Saturday amounting to P1 per liter is base on the increases in the international market.
According to Chua, if they will implement a P0.50 per liter increase it would take them until July to complete the recovery adding that the recoveries started in February.
Nicasio Alcantara, chairman and chief executive officer of Petron Corporation, also admitted the impossibility of implementing the recovery in a staggered system.
“We know that many Filipinos are suffering from poverty and we are considering that. But I cannot tell you how we can do it but we are studying it (the possibility of implementing the P0.50 per liter increase),” Alcantara said.
He explained that at present their selling price are below their cost and this is their problem now.
He added that fuel is just one of the components of the consumer price index adding that prices of basic commodities such as rice, meats and others are also increasing.
“We have to address this on a more comprehensive approach and that’s up to the executive branch of the government to address this problem,” said Alcantara.
Energy Secretary Angelo Reyes meantime said they cannot force oil companies not to implement the price adjustment since the oil industry is already deregulated.
But he asked auditing firm Sycip Gorres and Velayo (SGV) and the University of Asia and the Pacific (UA&P) to expedite its report for the government to determine the reasonableness of the increase imposed by oil firms.
At the same time, Reyes warned LPG dealers from cheating the public or those who are underfilling the cylinders and selling unsafe cylinders saying “we are closely monitoring them”.
“We will continue to run after these people that are cheating the public,” he declared. (MSN/Sunnex)
