"The price adjustments are an outcome of the sustained increase in the international prices of crude and finished oil products plus the consequence of the depreciation of the peso," Shell general manager for External Affairs Roberto Kanapi said.
New players Eastern Petroleum Corp. (EPC), Seaoil Petroleum Corp., Unioil Petroleum Philippines Inc., City Oil, and Jetti Corp., however, said they are not increasing their prices yet. The five new oil players announced this during the launch of Pure Diesel, the country’s first ever low sulfur diesel as mandated by Republic Act 8749 or the Clean Air Act.
The law directs oil companies to reduce the sulfur content of automotive diesel by 75 percent from 0.2 percent to 0.05 percent effective Jan. 1, 2004.
Energy Secretary Vincent Perez welcomed the move of the five new oil players in introducing the CAA-compliant diesel ahead of the committed Nov. 30 deadline.
Pure Diesel is available since Aug. 18 at the 180 service stations of the five new oil companies.
City Oil president Frederick Tagorda said they will try to absorb the initial cost of the early implementation of the new CAA-compliant diesel. "We will shoulder the cost as long as we can," Tagorda said.
EPC chairman Fernando Martinez and Unioil spokesman Lawrence made the same commitment. With the new wave of oil price increases, Energy Undersecretary Jocot de Dios said they are now talking to Petron, Unioil and EPC to carry out anew the discount on bulk users such as jeepney and bus operators to prevent clamor from transport groups to jack up transport fares.
De Dios and Perez admitted that the steady increase in the price of world crude in the past three months has apparently exerted pressure in local pump prices. — With Marianne Go