As expected, Petron, Caltex hike prices

Major oil players Petron Corp. and Caltex Phils. Inc. jacked up prices of their petroleum products yesterday, taking the cue from rival Pilipinas Shell Petroleum Corp. which raised pump prices by 37 centavos per liter over the weekend.

Petron spokesman Antonio Pelayo said they have matched the price adjustments of Shell while Caltex officials said wholesale prices to retailers were increased by up to 39 centavos per liter.

New industry players like Eastern Petroleum and Flying V jacked up prices by an average 40 centavos per liter.

Petron decided to shelve a planned 53 centavo price increase covering the month of May.

"We are just socially responsive," Pelayo told reporters. "This is in response to the request of the government and the public sector to consider a phased approach."

He said Petron would still have to recover the remaining 16-centavo difference in the next price increase, which could be implemented by the third or fourth week of the month.

He stressed, however, that the company would continue to assess the situation before announcing any further adjustment.

Pelayo explained that the latest price hike took into account the impact of the world crude prices for the month of May.

"The culprit for the increase is the volatile prices of crude oil in the world market. For June, it would be the peso depreciation," he said.

In May, the price of Dubai crude increased by $1.42 to reach $25.60 per barrel from the April average of $24.18. The peso, on the other hand, has depreciated by P1.09 to reach P51.59 to the dollar in June.

Militant groups condemn hike

Militant organizations led by the Kilusang Mayo Uno (KMU) condemned the major oil companies for their continued adjustment of prices.

"The cartel has no legal basis for continuing to increase prices. They should even roll them back because of the overpricing," KMU spokesman Sammy Malunes said.

Malunes said groups are preparing a work stoppage in time with President Arroyo’s first State of the Nation Address to protest the oil price hikes and to demand a P125 across-the-board wage increase.

"We are sick and tired of the price hikes and the plummeting of the peso’s value. We are even more tired of hearing the government say it cannot implement a wage hike because it is enforcing austerity measures," he said.

The Kilusang Magbubukid ng Pilipinas (KMP) described the latest oil price hike as a "calamity worse than Mayon’s eruption."

"We demand that the President immediately implement oil price control measures and prioritize the scrapping of the Oil Deregulation Law in the 12th Congress," KMP secretary general Danilo Ramos said.

The Bagong Alyansang Makabayan (Bayan) also urged the government to institute measures against the oil firms, including price controls and the scrapping of the oil law.

At noon yesterday, Bayan led 100 militants in an indignation rally in front of the Shell offices in Makati.

"Can the government please stand up and probe into this stealthily implemented hike?" Bayan secretary general Teodoro Casiño asked. – With Sandy Araneta, Mayen Jaymalin