Oil firms seen to hike prices by 19¢ a liter

If oil companies implement an increase in their pump prices next month, it should not be more than 19 centavos per liter, Consumers & Oil Price Watch (COPW) chairman Raul T. Concepcion said yesterday.

"I projected that the average increase for the month of March to be approximately 19 centavos per liter," Concepcion said.

The industrialist said under the Department of Energy (DOE) formula, the increase will likely take effect on March 17.

According to Concepcion, his computation of the projected increase in oil prices by middle of next month took into account the balance of 32 centavos (over recovery) due to the consumers by the oil companies.

He said the impact on the prices of the reimposition of the three percent on petroleum products, the increase in the price of crude, and the appreciation of the peso were also taken into consideration in the average 19 centavos oil price hike.

The suspension of the imposition of the three percent tariff on all imported and refined oil products was lifted middle of this month.

For the past three months after the Oil Petroleum Exporting Countries (OPEC) announced plans to cut back production by 1.5 million barrels of oil per day, the prices of crude in the world market have been rising.

From an average $21.65 per barrel in December, it rose to $22.85 per barrel in January. As of Feb. 22, the average price of Dubai crude was $25.16 per barrel.

The peso had improved against the dollar since December and early January. As of Feb. 22, the peso averaged at 48.24 to a dollar.

Concepcion said the projected average price of Dubai crude rose from $22.85 per barrel in January to $24.93 in February. The projected peso appreciation, he said, is P2.68 from P50.93 in January to P48.25 in February.

Oil companies have indicated plans to increase anew the prices of their pump products next month after rolling back their prices last January.

In fact, Caltex Philippines Inc., one of the major players in the industry, had implemented a five-centavo increase last Feb. 14 to recover the losses from the reimposition of the three-percent tariff, on oil products.