THE business and energy sectors warned that the prices of petroleum products will not remain low.
Engineer Saul Gonzales, chief of the Department of Energy (DOE) energy industry management division, said that fuel prices in the local and world markets will likely increase this year.
“People should not spend too much of whatever savings they get out of the cheap fuel because this is temporary,” he said.
Teresa Chan, president of the Cebu Chamber of Commerce and Industry, gave similar advice.
She said that the public should take advantage of the cheap fuel by increasing savings, pre-terminating loans or accelerating payments, or expanding investments.
She said that one of the factors for the drop in fuel prices is the increase in oil production in Saudi Arabia. Since the United States increased its oil production, Saudi Arabia might cut back its yield and this might raise fuel prices again, she said.
Oil companies announced another rollback this week: P1.25 per liter for gasoline and P1.45 per liter for diesel.
Chan said that the Philippine economy will continue to grow in this environment. “I am one who shares the forecast that the economy will be sustained until 2030 and we might not even have to wait for 2050 to be a tiger economy,” she said.
Shipping firms
Jojie Villamor, information officer of the Department of Trade and Industry 7, said that the prices of basic goods will drop if shipping firms cut passenger and freight rates.
Maritime Industry Authority (Marina) 7 Director Nanette Villamor-Dinopol said that some shipping companies have decided to adjust rates amid low fuel prices.
The shipping firms will submit this week their rate adjustment reports in compliance with a Dec. 29, 2014 Marina advisory.
Dinopol told Sun.Star Cebu that Alex Cohon, president of the Visayan Association of Ferryboat and Coastwise Service Operators (VAFCSO), informed her that shipping companies will adjust rates depending on their operating costs.
VAFCSO met last Jan. 15 to discuss the Marina advisory directing shipping companies to reduce rates to reflect the declining fuel prices.
Dennis Verallo, head of the utility economic department of the Visayan Electric Company, said that the drop in fuel prices will have minimal impact on power rates because the utility firm gets most of its energy from coal and geothermal plants.