‘Big 3,’ Total raise pump prices anew by 50 centavos

The relentless spike in the prices of crude in both the world and regional markets prompted local oil companies to increase pump prices anew by an average of 50 centavos per liter over the weekend.

The country’s three biggest oil companies — Petron Corp., Pilipinas Shell Petroleum Corp., Caltex Philippines Inc. — and independent players like Total Philippines also attributed the latest oil price hike to the continued rise of prices of refined petroleum products.

Gasoline and diesel products are now up by an additional 50 centavos per liter while a P1 per liter hike was implemented for 11-kilogram liquefied petroleum gas (LPG) tanks. The price of unleaded gasoline now averages P35.10 per liter, diesel at P32.46 per liter while an 11-kilo LPG tank ranges from P446 to P469.50.

Most oil companies maintained their discounts for diesel which is largely consumed by mass transport groups. Industry observers said consumers can expect more price adjustments toward the end of the year when demand for heating oil is largely seen to increase in temperate countries as the winter months approach.

Southeast Asian governments are becoming more concerned about the continued surge in world crude prices.

In the ASEAN region, seven member countries have rice oil and gas resources with Brunei Darussalam and Indonesia among the world’s top five liquid natural gas (LNG) producers. ASEAN controls some 40 percent of the entire oil and gas resources in the Asia-Pacific region and oil and gas exports generate $48 billion a year for the ASEAN economies.

However, Ong Keng Yong, ASEAN secretary-general, noted that the region is not entirely spared from the impact of rising oil prices. Some of its member countries are particularly vulnerable to disturbances in energy supply since they are highly dependent on oil imports, such as Singapore, Thailand, and the Philippines which are the most oil dependent ASEAN economies.

He said the threat is further magnified by the fact that ASEAN is one of the fastest growing regions in the world, which requires increasing energy supplies to fuel its rapid pace of economic expansion.

Another key factor in the increased demand for energy is the rise in vehicle ownership in the region, brought about by the more affluent lifestyle of its population as well as the rising need to transport business people and industrial groups.

The Philippine government is worried about the relentless increase in world prices of oil and has been urging firmer measures, such as mandating energy conservation measures.

Earlier, Energy Secretary Raphael Lotilla noted that country’s energy conservation measures should focus on reducing fuel consumption in the transport sector which accounts for 53 to 58 percent of the country’s oil requirements.

Several local oil companies have already introduced alternative fuels for transportation such as LPG and coco-biodiesel. The government has mandated the use of coco-biodiesel for government agencies while some 200 buses plying the Southern Luzon corridor will soon be running on CNG or compressed natural gas.