Oil firms implement another round of price increases

MANILA, Philippines - Oil companies implemented another round of price increases in just two days, resulting in an average increase of P1.80 per liter for premium gasoline.

Effective early morning yesterday, Pilipinas Shell Petroleum increased the price of its premium gasoline by 80 centavos per liter, regular gasoline by 30 centavos, diesel by 50 centavos, and kerosene by 40 centavos per liter. 

Petron Corp. and Chevron Philippines made price adjustments of 80 centavos per liter for premium gasoline, 25 centavos for regular gasoline, 50 centavos for diesel, and 40 centavos per liter for kerosene.

Total Philippines raised the pump price of its unleaded gasoline by 80 centavos per liter. Flying V raised the prices of all its gasoline products by 80 centavos per liter.

Energy Undersecretary Jose Layug Jr. said oil firms could have implemented a single price adjustment that would have been higher if it were not for the intervention of the energy department. He said that as of Jan. 9, the computed price increases for the domestic market could have reached P2 per liter.

“We appealed to the companies to stagger the oil price hike and not to implement the full amount in one day,” Layug said.

The Department of Energy (DOE) reviews the weekly movement of oil prices in the international market and its impact on domestic prices. The department uses the Monday-to-Friday average of the Mean of Platts Singapore (MOPS) for the previous week to calculate the movement of pump prices for the coming week. MOPS is the guiding rate for oil prices in Asia. 

“With this formula, we are able to determine how much will the pump prices move every Monday. The oil companies implement a weekly movement and provide prior notice to the DOE every Monday,” Layug said.

Anakpawis Rep. Rafael Mariano, meanwhile, called on the House of Representatives yesterday to investigate the impact of unabated increases in oil prices because it burdens farmers with higher production costs. – With Rhodina Villanueva