MANILA, Philippines - Consumers have to deal with higher fuel prices this week after giant oil companies jacked up pump prices of premium and regular gasoline yesterday.
Pilipinas Shell Petroleum Corp., Petron Corp. and Chevron Philippines Inc. increased the price of premium and regular gasoline by 95 centavos and 35 centavos per liter, respectively.
However, they reduced diesel price by 25 centavos per liter while keeping kerosene prices unchanged.
Independent players PTT Philippines Corp., Phoenix Petroleum Philippines Inc., Seaoil Philippines Inc. and Total Philippines Corp. also implemented the same price adjustments effective early yesterday.
Petron said the increase reflects the movements in the international oil market.
The ongoing geo-political crisis in the Middle East may also push prices higher.
“I am worried... Definitely there is going to be a price impact,” Energy Secretary Jose Rene Almendras said.
Last week, US Ambassador Chris Stevens and three other Americans died in an attack on the US embassy in Benghazi, Libya. US diplomatic facilities in Cairo, Egypt and Yemen were also stormed by protesters.
Almendras said a price spike would worsen the economic woes in the Eurozone and the United States.
Last week, major and independent oil players slashed pump prices for premium gasoline and diesel by 60 centavos and 25 centavos per liter, respectively.
However, the oil firms increased the price of kerosene by 20 centavos per liter while maintaining the price of regular gasoline.
Data from the Department of Energy (DOE) showed that since the start of the year, the net increase for gasoline and diesel hit P3.43 per liter and P1.47 per liter, respectively,
Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can set the prices of petroleum products based on market forces to encourage competition.
The deregulation law also prohibits the government from intervening or influencing the pricing schemes of the oil companies.
However, the government, through the DOE, has the power to monitor prices.
For monitoring purposes, the DOE has requested the firms to report to the department any price adjustments.