Wednesday, November 05, 2008 Gov't aims for cut in LPG prices
STA. ROSA, Laguna -- The government is eyeing more reduction in the prices of the "cooking gas" or the liquefied petroleum gas (LPG) before November ends, said Department of Energy (DOE) Secretary Angelo Reyes.
Reyes, in a briefing after the Cabinet meeting at the Toyota Motor Philippines Corporation Office here, said the recent P4-kilogram (kg) or P44 per 11-kg LPG cylinder that was implemented is only a quarter to a third of an expected P12 to 17 per kg rollback in LPG prices.
He added that if the current trend of rollback in the world market continues, and the peso remains strong against the dollar, "we should (also) expect some more rollbacks in diesel and gasoline".
"Oil fluctuates faster. Very, very volatile, changes everyday unlike contract price (of LPG)...When you talk about gasoline and diesel, price of crude varies daily. There are typhoons, civil war in Nigeria, disturbance in Iraq, threat of Iran, which makes prices jump up and down. Very, very volatile," he said.
President Gloria Macapagal-Arroyo said the government, based on their analysis, is now looking at the possibility that the prices of crude, and eventually the local pump prices, would reach the level of P34.95 to P40.95 per liter level or similar to June to July 2007 level if the trend continues.
Reyes said based on DOE records, prices of gasoline was sold at P40.95 per liter in July 2007, while the price of diesel was P34.95 a liter which stemmed from the US$65.79 per barrel rate when the stock were bought by the local oil firms in June 2007.
He said at present, the current supply of oil was bought in October at US$67.42, which is almost similar to the Dubai crude rates of US$67.38 in August 2007. This was then sold at P41 per liter of gasoline locally.
Reyes and Planning secretary Ralph Recto in the same briefing denied that they were at odds with each other, adding that they have already talked things over, compared, agreed, and reconciled their computations and view on the oil price issue.
Reyes said they are now working together in seeing to it that current pump prices "accurately reflect the international prices of crude" while Recto said the important thing for both of them is that "oil prices continue to go down." (JMR/Sunnex)
