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Sunday, May 11, 2008
Oil firms hike prices by P1 per liter
MANILA -- Oil companies implemented a new round of P1.00 per liter price adjustment exactly a week after increasing prices by P1 on all petroleum products and liquefied petroleum gas (LPG).
The series of oil price increases prompted various militant and transport groups to launch a nationwide transportation strike on Monday.
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Oil giants Petron Corporation, Chevron Philippines formerly Caltex, and Shell Philippines lead the increase.
Independent oil firms Total Philippines, Unioil Petroleum Philippines Inc., and Flying V also implemented similar price adjustment.
Petron said month-to-date average for Dubai crude has reached $115.85 per barrel. This is higher by $8.44 than the April average of $103.41.
"Dubai reached a new all time high of $116.35 per barrel last May 8," Petron said in a statement.
Total also said they are increasing by P1.00 per liter the prices of AutoLPG.
Latest price monitoring conducted by the Department of Energy (DOE) indicated that as of May 3, unleaded gasoline w/AVRS now ranged between P47.93 to P50.26; kerosene between P44.65 to P48.80; diesel average at P41 to P42 per liter while liquefied petroleum gas (LPG) now ranged between P563.09 to P609.25 per 11 kilogram cylinder.
The DOE last May 5 failed to reach a compromise agreement with oil companies that would cushion the impact of the oil price increases.
Related story:
Firms defend newest increase in oil prices
Dubai crude as of May 9 was placed at P111.85 per barrel higher by $8 than the $103 per barrel price in April and $7 per barrel than the $96.76 per barrel.
On the other hand, Mean of Platts Singapore (Mops) for unleaded gasoline as of Friday was pegged at $122 per barrel higher than the April and March price of $118 and 109 respectively while MOPS diesel was at $146 per barrel for this month and April reached $141.98 per barrel.
The Philippines used Dubai and Mops as benchmark for the two commodities.
Oil companies during last week's energy forum said they need to recover P6.00 but this doesn't include foreign exchange rate and market competition among others.
Edgar Chua, country manager and CEO of Shell Philippines in his presentation with DOE officials and consumers, said it would take them until July to complete the P6.00 recovery if they will impose the P0.50 price hike instead of the P1.00 per liter they are imposing.
"Our under recoveries are increasing. If we keep to the P0.50 per liter it will take several months to recover the amount," he said.
Oil companies said more price increase in petroleum products will likely to happen in the coming weeks, as oil production cost in the world market continue to soar.
The Department of Energy (DOE) implemented earlier a one percent tariff cut for the month of April to cushion the impact of the fuel price hike in the world market.
However, oil officials admitted the tariff reduction would only have very minimal impact because prices in the internal market continue to shoot up.
Transport strike
Meanwhile, various militant groups are scheduled to mount a nationwide transport strike on Monday.
In Davao City, militant and transport groups are gearing up for the nationwide transport strike Monday to protest the spiraling prices of fuel.
The Bagong Alyansang Makabayan (Bayan) and Consumer Alert will stage simultaneous protest actions at 3 p.m. Sunday.
The City Government of Davao have also prepared measures to ensure easy transportation to the public. The City Government will be fielding out buses to different parts of the city.
The service, however, is not for free and the riding public would have to pay regular fare.
In Cebu City, most of the transport groups plan to stay out of the jeepney strike their counterparts in Manila will stage on Monday, saying it will neither bring down fuel prices nor add to their income.
Ruben Rama, secretary general of the Nagkahiusang Drayber sa Sugbo (Nadsu), complained that some transport leaders lack sincerity in protecting the drivers’ interest.
The Cebu City Police Office (CCPO) has also mapped out security measures to ensure that drivers who will not join the protest will be protected from harassment.
Police warned the strikers and their sympathizers not to intimidate or harm those who decide to ply their routes. Those caught using spikes to keep other drivers off the streets will be charged with malicious mischief, he warned. (MSN with reports from Sun.Star Davao/Sun.Star Cebu/Sunnex)For more Philippine news, visit Sun.Star General Santos. (May 11, 2008 issue)
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