Monday, June 23, 2008 Oil firms to explain latest price hike
ENERGY Secretary Angelo Reyes is calling a meeting with oil companies this week to seek an explanation on the latest round of increases implemented Saturday morning.
"I will ask them to explain the increase and what are these so called under recoveries," Reyes said.
Oil majors such as Petron Corporation, Pilipinas Shell, Chevron Philippines, Total Philippines as well as independent oil firms like Flying V, Eastern Petroleum and Unioil Philippines imposed a P1.50 per liter hike on the prices of petroleum products early morning of Saturday.
Petron in a statement said the increase is a result of the continuing price hikes in the international market.
For the month of June, Petron said the price of Dubai crude already hit US$126.13 per barrel on an increase of US$6.63 from the US$119.50 per barrel cost last month.
The price hike imposed by oil companies is the 16th increased they have implemented.
Price of gasoline now stands at P58.50 per liter while diesel ranges between P50.93 to P51 per liter and kerosene also surpassed the P54 per liter value.
While Reyes noted that the recent study conducted by Professor Peter Lee of the University of Asia and the Pacific (UA&P) already determined that the price increases implemented by the oil companies are "reasonable" and that there was no abuse committed on the part of the industry, he still want to talk to oil firms to find out how much these companies need to recover.
"I want to know how they compute these under recoveries so I will talk to them," Reyes said.
Industry sources said for the months of May and June they still need to recover P6.50.
Meanwhile, Reyes assured that the government is ready to handle any possible eventualities as a result of the continuing oil price hikes. (MSN/Sunnex)
