Oil firms increase prices

MANILA, Philippines - Major and independent oil firms yesterday raised fuel prices in areas not affected by floods triggered by torrential rains last week.

Petron Corp. and Pilipinas Shell Petroleum Corp., Seaoil Philippines Inc. and Total Philippines Corp. jacked up prices of premium gasoline by P1.80 per liter and regular gasoline by P1.70 per liter.

Prices of diesel and kerosene rose by P1.50 per liter and P1.60 per liter, respectively.

“This is to reflect movements in the international oil market,” Petron said.

Energy Secretary Jose Rene Almendras said the oil companies did not implement price adjustment in flood-stricken areas, including Metro Manila, Bulacan, Pampanga, Bataan, Zambales, Rizal, Pagsanjan in Laguna, and Bacoor, Kawit and Rosario in Cavite.

Almendras said the oil firms incurred foregone revenues by not increasing prices in flood-stricken areas.

“They buy expensive fuel and sell at a wholesale price and that will result in losses for them,” he said.

Year-to-date net increase for gasoline hit P1.80 per liter while diesel recorded a net decrease of 18 centavos per liter, data from the Department of Energy (DOE) showed.

Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can price their products based on market forces so as to encourage competition.

The deregulation law prohibits the government from intervening or influencing the pricing schemes of the oil companies. However, the DOE has monitoring powers.