"I think its inappropriate for certain parties to be dictating when and how much the oil prices should increase. We should let market forces play out competitively because there are some sectors that are offering some options," Perez said.
Perez pointed out that under a deregulated environment, the oil firms should be allowed to operate competitively among themselves.
The energy secretary was reacting to private sector-led Consumer & Oil Price Watch (COPW)’s move to come up with a paid advertisement "appealing to the oil companies not to increase their prices this month."
According to the energy chief, any indication of price manipulation should not be tolerated. "I guess, it is already regulating the market and send wrong signal and maybe foreseen to be price fixing," he said.
COPW chairman and industrialist Raul T. Concepcion releases monthly assumption of how oil products should be priced.
While these monthly computations are often being questioned by the oil firms, Concepcion argued that he is doing it in the "spirit of transparency."
As a consumer advocate, Concepcion said the public has the right to know the trend in the local and international oil market.
In his appeal, Concepcion was particularly requesting Pilipinas Shell Petroleum Corp. "not" to proceed with their announcement to increase oil prices by 25 to 30 centavos per liter this week.
Concepcion said that while it is true that the average oil price as of March has dramatically increased by $2.48 per barrel (February average of $19.02 against March 7 average of $21.50), the oil supply to be purchased this month will not be sold until the third week of April as the big three oil refiners maintain an inventory of three weeks to one month.
Aside from these observations, Concepcion also recommended some options on how oil companies should implement a possible oil price hike next month.
Based on Option A, he said the oil companies could adopt a weekly staggered oil price increase on April 6, 13, 20 and 27.
The second option is to have a semi-monthly staggered increase on April 13 and 27 while the last option is to have one time increase on April 21.