Small oil players to hike prices by 60¢-70¢ per liter this week

Independent and small oil players said yesterday they are likely to raise the prices of their diesel products by about 60 to 70 centavos per liter this week.

But the new players said they may hold prices of gasoline at current levels.

Independent Philippine Petroleum Companies Association (IPPCA) Chairman Fernando Martinez said they are willing to keep gasoline prices at current levels as the global prices of gasoline by $3 per barrel recently.

"For gasoline, yes (we will hold prices) but for diesel, oil price hike is possible this week,"Martinez said.

Energy Secretary Vincent S. Perez Jr. earlier urged the oil firms to hold off any oil price increase as oil prices in the world market have been on a downward trend.

Unleaded gasoline imported from the region, the benchmark used by small oil players, fell recently by $3.35 to $48.15 per barrel from $51.50 in August. Imported diesel slightly inched up to $52.26 per barrel from $51.66 a month ago.

Meanwhile, Dubai crude, the benchmark of oil refiner Petron Corp. and Pilipinas Shell, also dropped by $3.32 to an average of $35.23 per barrel from $38.55 in August after a record high $41.26 per barrel on Aug. 20.

Consumer and Oil Price Watch chairman Raul T. Concepcion said that with the decision of Petron not to raise prices as world oil prices ease, small oil players will likely hike prices of diesel but not gasoline.

Concepcion earlier estimated that small oil players have an under-recovery of 47 centavos per liter for gasoline and P2.14 per liter for diesel.

The COPW chief said Petron and Shell have an over-recovery of 63 centavos,which could be used to offset any increase for gasoline.