Monday, May 05, 2008
Firms defend newest increase in oil prices (8:00 p.m.)
MANILA -- 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 under 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. (MSN/Sunnex)
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