Wednesday, June 04, 2008 Firms asked to explain oil price hikes
ENERGY Secretary Angelo Reyes has summoned oil companies and LPG traders to explain and justify the series of increases they imposed on the prices of petroleum products.
The meeting is set on Wednesday at 10 a.m. at the Department of Energy (DOE) main office in Fort Bonifacio, Taguig.
Oil firms last weekend increase the prices of their gasoline, diesel and kerosene by P1.50 per liter and it was reported that they plan to raise the prices of fuel again by another P2 per liter this weekend.
Virginia Ruivivar, head of the corporate communications of Petron Corporation, said for the month of May they need to recover at least P3 and this is due to the continuing increase in the world market.
The P3 under recovery does not include month of June, she added.
Reyes will also ask the LPG (liquefied petroleum gas) Marketers Association (LPGMA) to explain why they should not be sanctioned for imposing a P3.50 per kilogram increase in the LPG products used in households.
The DOE held last week a meeting with the oil companies to discuss possible alternatives to cushion the impact of the rising fuel costs.
Issues that were discussed during the last meeting was the possibility of scrapping the expanded value-added tax (e-VAT) imposed on systems loss charges which the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) rejected. (MSN/Sunnex)
