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THE
continuous increase in world oil prices has again
prompted local oil companies to increase the price of
diesel, gasoline and kerosene by P0.50 a liter over the
weekend.
Oil
companies Chevron Philippines Inc., Petron Corp. and
Total (Philippines) Corp. on Saturday implemented their
respective price increase to reflect a $5.62-per-barrel
increase in the average price of
Dubai crude this month.
Oil
benchmark
Dubai crude average increased to $102.38 a barrel this month, from
$96.76 a barrel in March. It has reached an all-time
high at $109.55 a barrel on April 23.
The
latest price increase brings the total increase to P1.50
per liter this month alone.
Energy
Secretary Angelo Reyes earlier said the Department of
Energy (DOE) has already certified and recommended the
imposition of a 1-percent tariff on imported fuel
products in May.
Reyes
said the government decided to maintain the import duty
this month to next month on the premise that world oil
prices have continued to increase.
“The
1-percent tariff will just ease pressure,” said Reyes,
adding that if the upward trend continues, local oil
companies can opt to increase their prices.
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
Mean of Platts Singapore (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. |
