Oil price hike seen this mo

The probability of an oil price increase this month looms as the three majors said they still have huge losses to recover since the last price hike on Nov. 1 last year.

Caltex Philippines Inc. said that they just might increase their prices this month although the increase may be "tempered."

Caltex president Enrico Cavestany said they are still holding discussions with Energy Secretary Mario V. Tiaoqui.

"We will not take any action (price hike) yet ... as we are conscious of the (weak) economy, and that we are amendable to temper our increases," Cavestany said in a telephone interview.

An official of Pilipinas Shell Petroleum Corp. said they will wait for the result of the meetings between the representatives of the oil companies and Tiaoqui.

The oil majors pointed out that the last time they increased prices was in November on account of the increase in the price of crude oil during the month of October. At that time, the price of crude oil averaged $21.45 per barrel. In November, it rose to $23.12 then to $23.65 per barrel in December. The average price of crude from Jan. 3 to 7 was $22.06.

Cavestany said Caltex is inclined to look seriously into a suggestion by industrialist Raul T. Concepcion that the increase be spread out in three tranches of roughly P0.30 each in the first quarter of the year.