Five oil firms raise prices by 50¢/liter

The country’s big three oil companies raised their pump prices by 50 centavos per liter effective yesterday. Two other oil players – Total Philippines Corp. and Unioil Philippines Inc. – are expected to follow suit today.

Chevron (formerly Caltex Philippines Inc.) initially raised the prices of its fuel products followed by Shell Philippines and Petron hours later.

Chevron said it will also increase the price of its liquefied petroleum gas (LPG) products by 50 centavos per kilogram.

Petron and Pilipinas Shell, on the other hand, have yet to announce an increase in the prices of their LPG products.

The latest oil price increase came as oil prices in the international market continued to soar

Dubai crude, benchmark of local oil refiners in pricing their products, averaged $65.55 per barrel as of May 17 as against $64.14 in April.

Diesel price in Mean of Platts Singapore (MOPS), the price gauge of oil importers, averaged $87.97 per barrel against $86.66 in April.

Unleaded gasoline in MOPS was still going up at $87.18 per barrel as of May 17 compared to $81.13.

LPG prices in the world market also rose to $470 per metric ton in May from April’s level of $428.

Chevron and Total, however, assured the public that they will continue to implement the existing P1 per liter discounts to PUVs being provided by the oil firms to soften the impact of rising oil prices on the commuting public.

Based on data supplied by the Department of Energy (DOE) as of May 17 or just before the latest oil price increase, the prices of unleaded gasoline range from P38.55 to P41.23; kerosene P36.48 to P38.66; diesel P34.29-P37.25 and LPG 11-kg tank P420.75 to P480.

Last week, the DOE set the trigger prices for the lowering of tariff on imported crude and finished products from three percent to zero percent.

The trigger prices formed part of the guidelines for the implementation of the Executive Order No. 527 signed by President Arroyo early last week.

Under the guidelines, the two percent tariff rates shall be imposed on crude and petroleum products should the average price of both Dubai crude and MOPS—based diesel in the last two weeks reach $66.00 and $88.00 per barrel, respectively.

The one percent tariff rates, on the other hand, shall be imposed on crude and petroleum products should the average price of both Dubai crude and MOPS—based diesel in the last two weeks reach $75.00 and $88.00 per barrel, respectively.

Zero percent tariff rates, meanwhile, shall be levied on crude and petroleum products should the average price for both Dubai crude and MOPS—based diesel in the last two weeks reach $85 and $88 barrel, respectively.

The tariff adjustments will only be implemented upon certification issued by DOE to the Department of Finance and the Bureau of Customs that the trigger prices for both crude and diesel have been met.

The DOE said the guidelines also impose on oil companies to reflect the corresponding reduction in pump prices of diesel fuel sold to the public transport sector.

To attain this purpose, oil companies have been asked to provide sufficient number of gasoline stations offering the appropriate tariff-reduced diesel prices to the public transport sector.

The corresponding reduction in pump prices is on top of the P1 diesel discount voluntarily provided by oil companies to public utility drivers.