Caltex Philippines Inc. hiked its prices by similar amounts the other day, while Pilipinas Shell Petroleum Corp. still has to make its decision.
"We have decided to follow suit, but the level of increase was lower than what the market expected. We should have increased our prices by 42 centavos per liter based on the movement of foreign exchange rate and world crude prices," said Petron corporate communications manager Virginia Ruivivar.
Shell spokesman Robert Kanapi said their top executives were still meeting on the issue.
Kanapi said they will announce management’s decision this morning.
Petron’s suggested new retail prices in Metro Manila are P18.98 per liter for top-of-the-line Blaze, P18.50 for XCS plus, P17.84 for Unleaded, and P14.39 for diesel.
For its part, Caltex now sells its gasoline at P18.41 per liter for Vortex Gold, P17.86 for Vortex Silver, P14.54 for diesel, and P14.28 for kerosene.
New players Eastern Petroleum Corp. and TotalFinaElf Philippines Corp. said they would increase their prices effective yesterday by 35 centavos and 39 centavos per liter, respectively.
There were no words yet from the other new entrants.
Caltex, a local subsidiary of Chevron Texaco Co., also cited other factors that affect price movements such as supply, demand, competition and market forces.
Caltex spokeswoman Marian Catedral said her company is committed to openness and transparency pertaining to price adjustments.
"We will continue to stay closely attuned to market and competitive conditions. Caltex will more accurately reflect these conditions by adjusting prices up or down in smaller amounts, more frequently, if necessary, with the frequency dictated by changes in market and competitive conditions. This will help cushion consumers from sudden big swings in prices," Catedral said.
She added that Caltex will continue to monitor market conditions and make price changes accordingly.
The Consumer and Oil Price Watch headed by businessman Raul Concepcion said the oil firms’ under-recovery for August amounted to 39 centavos per liter.
He expected the oil firms to hike their prices by the same amount in the third week of September following a meeting of the Organization of Petroleum Exporting Countries (OPEC) on Sept. 17.
Concepcion said the major factor for this month’s fuel price increase, the sixth within the year, is the peso devaluation by P1.20 against the dollar, compared to only 19 centavos in July.
The oil companies did not indicate if there would be no further price hikes this month to make up for a shortfall of three centavos under-recovery. Based on their computations, gasoline prices should be adjustment by 42 centavos per liter.