Oil firms hike pump prices by more than P1

MANILA, Philippines - Oil firms implemented another round of increase in pump prices of fuel effective today.

Chevron, Petron, and Shell announced last night they would increase their prices for gas by P1.05 per liter and diesel by P1.45 per liter due to price adjustments in the international market.

They are also raising kerosene price by P1.30 per liter.

The increase marked the third round of oil price adjustments this month and the sixth consecutive week of price increases, a ranking energy official said yesterday.

Department of Energy-Oil Industry Management Bureau director Zenaida Monsada said   based on their monitoring of global crude prices, oil firms also took into account foreign exchange adjustment, a factor that affects pump prices because oil is an imported commodity.

Monsada said there is an apparent tightness in world crude supply because of political tensions in Syria, which can affect global economic conditions.

On the back of relentless oil price increases, the government’s hands are tied on the matter, she said.

“The Philippines and the Department of Energy have no control over international market developments,” she said.

Oil companies announced last week an 80-centavo per liter increase for gasoline but also announced a rollback of 15 centavos per liter for kerosene. The oil firms kept diesel prices unchanged.

Last week’s adjustment brought prices of gasoline to a range of P46.60 to P54.55 per liter. Prices of diesel stayed at P38.10 to P41.45 per liter.

Last week’s price increase also followed an increase in electricity rates.

The Manila Electric Co. (Meralco), the country’s biggest power distributor, announced a power rate increase of 22 centavos per kilowatt-hour (kwh) to be reflected in the June electricity bills.

The upward adjustment in electricity rates would translate to a P44 increase in the June statement of a typical household consuming 200 kwh.

Meralco, a company led by businessman Manuel Pangilinan, said the rate increase stemmed from higher generation charge for June, which increased by 19 centavos per kwh to P5.66 per kwh.