Concepcion urges Petron, Shell to roll back prices by 63¢/ liter

Oil refiners Pilipinas Shell Petroleum Corp. and  Petron Corp. should roll back by 63 centavos the prices of their gasoline this month, a consumer advocate said yesterday.

Consumer Oil and Price Watch chairman Raul T. Concepcion, however, said the small oil players will be increasing their pump prices by 47 centavos for gasoline and P2.14 for diesel.

Despite the projected reduction in the price of gasoline Petron and Shell are expected to increase the price of their diesel products by 91 centavos per liter. 

Concepcion said in accordance with an agreement signed by President Arroyo, DOE Secretary Vincent S. Perez and the COPW, the price increase will be staggered weekly starting Monday, Sept. 13, and every Monday thereafter.

The COPW chief said depending on the movement of prices, the weekly price increases will be calibrated.

He also appealed to Shell  and Petron, which together account for 80 percent of the total market, not to follow the price increase of the new players.

The price of gasoline imported from the region (MOPS) increased in August compared to July by $4.98 (Aug. $51.50 vs July $46.52), while diesel increased by $5.41 (Aug. $51.66 vs July $46.25)

The price of Dubai crude increased in August compared to July by $3.90 (Aug. $38.55 vs July $34.65) and this was adjusted to reflect the cost of freight, premium and insurance.

Concepcion said he is optimistic that "we have reached the peak levels and very likely when we compare the prices in September vs August, the increase in October will be moderate."  

The high oil prices were due to a series of events ranging from the on-going guerilla war in Iraq, the specter of bankruptcy faced by Russia’s biggest oil company, the political instability in Venezuela, and the seemingly bottomless appetite for oil products by a recovering global economy.

Gasoline prices have gone up by an average of P5.35 and diesel, by P4.30 per liter or by more than 20 percent since January.