|
CRUDE
oil rose above $126 a barrel in New York to a record as
the dollar weakened against the euro, prompting
investors to buy commodities as a hedge against the
currency’s decline.
For a
fifth day oil climbed to all-time highs as the euro
strengthened on signs the European Central Bank will
keep rates at a six-year high to cut inflation. Nigerian
output fell to the lowest this decade in April because
of a strike and attacks on oil installations.
As
expected, oil companies in the Philippines announced
another P1-per-liter increase in the prices of gasoline,
diesel and kerosene over the weekend.
Chevron
Philippines Inc., Petron Corp., Pilipinas Shell
Petroleum Corp., Total (Philippines) Corp. and Unioil
Petroleum Philippines Inc. increased their prices on
Saturday morning.
Total
also increased by P1 per liter the price of its auto
liquefied petroleum gas on Saturday, raising the price
by P2 this month alone.
The
latest price increase in petroleum products brings the
total hike to P2 per liter this month alone.
The
Department of Energy (DOE) said the oil benchmark Dubai
crude averaged $111.85 per barrel this month from
$103.41 per barrel in April.
Energy
Secretary Angelo Reyes earlier said that he will exert
his best effort in finding a solution to cushion the
impact of skyrocketing fuel prices on the consumers.
Reyes
said he would discuss with the government’s economic
managers the possibility of finding a way in temporarily
suspending the 12-percent expanded value-added tax
(E-VAT) on petroleum products, as suggested by
lawmakers.
He added
the 12-percent E-VAT is mandated by law and the
Executive branch could not have it scrapped. “It [repeal
or amendment of the E-VAT Law] will need Congress’
approval,” Reyes said.
Officials of oil companies said they can look into
lowering the level of price increases to just
50-centavos per liter instead of P1, but claimed they
still have to recoup P6 in underrecoveries in the price
of diesel.
Apart
from the cost of crude and refined products, according
to oil companies, other cost components of petroleum
products such as suppliers’ and traders’ premiums,
product quality premium, freight and insurance costs,
port costs, duties, and taxes have been rising as well.
(Bloomberg, P. A. Isla) |
