Oil companies to hike fuel prices next week

10/23/2009

Another round of fuel price increases is set to be implemented next week by the “Big Three” oil firms as well as the small players.

This after Pilipinas Shell, Petron Corp. and Chevron Philippines, together with small oil players, declared the increase at the height of public denunciations from various sectors in the country, branding as unconscionable gas price hikes at this time when typhoon victims are still trying to

rebuild their lives.

Representatives of the petroleum importers and sellers, in a meeting with Energy Secretary Angelo Reyes at the Department of Energy (DoE) office at The Fort in Taguig City Wednesday, said they have to raise pump prices because of rising product costs.

Gasoline went up by $4 a barrel while diesel was jacked up by $6 a barrel this month, the oil firms said, citing world market prices.

In the domestic scene, the past two weeks saw an accumulated P2.25 increase for diesel; P1.50 for gasoline and P1.75 for kerosene.

Next week’s price adjustment would mark the third hike in pump prices in as many weeks.

Reyes, for his part, said the price add-ons were “justified” reflecting the price surge in the world market.

Reyes called for the meeting specifically to hear the defiant oil players’ reason for the series of hikes, which was enforced even as the country continues to recover from the devastation of recent typhoons.

Meanwhile, Bayan Muna secretary general, Nathaniel Santiago yesterday lauded the statement of Speaker Prospero Nograles saying there was an urgent need to stop the abuses of oil companies.

Nograles also said that the Oil Deregulation Law fell short of its supposed intent to put an end to the monopoly of the big three on the oil industry.

“It’s good that Speaker Nograles has seen the light on this issue of oil deregulation. For the longest time, Shell, Caltex and Petron have been abusing the law by jacking up their prices at the slightest excuse. Oil deregulation has only made the cartel even more abusive, and consumers have been at their mercy since the law was approved in 1998. More than a decade later, we have all seen the disastrous impact of oil deregulation, and it is high time for the law to be repealed,” Santiago said.

“There is still enough time to fast-track measures to repeal the oil deregulation law. If bills pushed by Malacañang can be rushed and even passed in a series of overnight plenary sessions, why not a bill putting an end to oil deregulation? It would be a great service to once and for all repeal this law that has brought nothing but added economic burdens to the people,” Santiago said. Pat C. Santos and Charlie V. Manalo

Back to top

For comments about this website:Webmaster@tribune.net.ph
The Daily Tribune © 2006