MANILA, Philippines - The Department of Energy reiterated yesterday that there was nothing irregular with the recent increases in the pump prices of the country’s oil firms.
Acting Energy Secretary Jose Ibazeta said there was a basis for the oil firms to raise their prices – a P0.50 per liter hike in the pump prices last Tuesday.
Ibazeta’s statement came amid threats by the transport groups to stage rallies to protest the new price hike and to pressure the Land Transportation and Franchising Regulatory Board into granting a petition to raise fares by one peso.
“I’m only using my basis in terms of what’s happening in the world economy. If you notice, the oil prices had gone up again up to $83 I believe per barrel and also if you notice, the dollar has also depreciated,” Ibazeta said in a briefing held at Malacañang.
“So those two alone can, will cause oil prices to adjust,” he added.
The benchmark Dubai crude price rose to $82 per barrel last Tuesday from $79 last week.
The same reason was cited by the oil companies in raising their pump prices last Tuesday.
In the same manner, the oil firms claim that they reduce their pump prices whenever there is a downward movement in the world oil prices.
Ibazeta said the DOE would continue to closely monitor the actions of the oil companies “to make sure that they follow the agreed upon formulas in terms of determining the prices for the Philippine market.”
The assurances made by the DOE have given no comfort to the transport sector, which has been complaining about the high price of oil in the country.
PISTON or the Pagkakaisa ng Samahan ng mga Tsuper at Operator Nationwide, an organization composed of jeepney drivers and operators, has threatened to go on strike to protest the recent increase in pump prices.