Flying V raises pump prices by P1 per liter

MANILA, Philippines - Flying V, the oil firm run by the Villavicencio family, raised its pump prices by P1 per liter to reflect the increase in world oil prices.

Dubai crude, benchmark of oil refiners, has gone up to $80 per barrel as of Jan. 5, from $75 per barrel last month. Unleaded gasoline imported from the region went up to $89 per barrel from $82 last month.

Imported diesel also went up to $88 from $82 per barrel.

Global oil prices have been going up due to the strong demand from Asia.

Joey Cruz, Flying V spokesman, said the latest price adjustment did not yet take into consideration the 70 centavos supposed price cut due to Executive Order 850, which brought down the tariff on imported petroleum products to zero percent.

“We have yet to reflect the benefit from the tariff reduction. The tariff cut took effect Jan. 1 and we have not imported after Jan. 1,” he said.

Cruz said the EO will only affect their prices once they start importing petroleum products.

They have tempered their price hike a little bit when they are supposed to jack their prices by P1.20 per liter, he added.

Flying V would follow if other oil firms adopt the 70-centavo cut on imported fuel, Cruz said.

As of press time, only Flying V was adjusting its prices.

Based on Department of Energy data, unleaded gasoline is sold at local pumps at a range of P41.30 to P45.52, while diesel is priced at P32.75 to P35.50 depending on the station, brand and market forces.

Last week, Energy Secretary Angelo Reyes announced that EO 850 would trigger a 70-centavo cut on local pump prices.

“We have good news,” he said.

“The President has issued an executive order reducing the tariff from three percent to zero.

“The effect of the EO on the pump price is 70 centavos per liter, so we should see the effect next week.

“So whatever the price will be next week, there will be a reduction of 70 centavos to conform with the EO.”

The EO was signed last Dec. 23 and took effect last Jan. 1.

It brings down tariffs of nearly all remaining goods sourced from the Association of Southeast Asian Nations (ASEAN) to zero percent.      – Donnabelle Gatdula