|
OIL
companies increased by another 50 centavos the prices of
diesel, gasoline and kerosene, citing as basis the
continuous surge of oil prices in the world market.
Chevron
Philippines Inc., Petron Corp. and Pilipinas Shell
Petroleum Corp. adjusted their price on Saturday
morning, while Total (Philippines) Corp. adjusted theirs
on Sunday morning.
The
latest increase brings the total adjustment to P2 per
liter, inclusive of the 12-percent value-added tax.
Earlier,
a source warned that consumers should still brace for
more increases until the end of the month.
According to a source, oil companies still have to
recoup at least P1 to P1.50 to fully reflect the
increase in world oil prices.
The
source noted that
Dubai crude is averaging $96.52 per barrel this month from $90.02
per barrel.
The
Department of Energy (DOE) monitoring said Mean of
Platts Singapore (MOPS)-based unleaded gasoline is
averaging $110.46 a barrel this month, from $105.07 a
barrel last month.
MOPS-based diesel, according to the DOE, also averaged
from $126.21 a barrel last month to $113.32 a barrel
this month.
Meanwhile, the DOE, seeking to soften the impact of
rising world oil prices, has also certified the cut in
import duties of petroleum products to 1 percent in
April from 2 percent in March.
The cut
in import duties will result in a reduction of 25
centavos per liter for all products and 50 centavos for
diesel.
The
trigger point for cutting import duties from 3 percent
to 2 percent is $83 per barrel for Dubai and $105 for
MOPS-based diesel, including cost of freight and
insurance premiums.
The
trigger point to cut import duties from 2 percent to 1
percent is at $92 per barrel for Dubai crude and $110
for MOPS-based diesel.
For a
zero import duty, the trigger point is set at $103 per
barrel for Dubai and $115 per barrel for MOPS-based
diesel; however, this excludes cost of freight and
insurance premiums.
The DOE
assured consumers that it is closely monitoring and
coordinating with local oil companies to keep prices
reasonable.
“We want
to make sure, to protect the consuming public, that oil
companies are not taking advantage of the situation,”
Energy Secretary Angelo Reyes said.
The DOE
recently certified the reduction to 1 percent in import
duties of petroleum products to cushion the impact of
world oil prices on local oil prices.
The
1-percent tariff will at least reduce the price of
diesel by half a peso effective April 1.
Reyes
said they deemed it better to focus on diesel since it’s
used by public-utility vehicles.
He said
supply has been kept at its current levels, particularly
after the Organization of Petroleum- Exporting Countries
met in Vienna last month and decided not to increase
production.
Reyes
noted that the supply of oil is finite and will run out
someday. “So with demand going up and supply going down,
or at least steady, these factors pressure prices to go
up and nothing can stop that. Unfortunately, we are not
producing our own oil,” he pointed out.
Some
oil-producing countries are able to collect revenues
from their oil production, and such collection is plowed
back to consumers in the form of subsidy for fuel and
oil consumption.
Reyes
admitted that the country has very little capability to
subsidize, though, and therefore must resort to a range
of options that include conserving energy and
fast-tracking the harnessing of renewable energy.
Since
the introduction of the Oil Deregulation Act in 1995,
according to Reyes, the country has abolished the Oil
Price Subsidy Fund, which helps cushion the impact of
world oil-price hikes. |
