This was the statement made by Energy Secretary Vincent Perez yesterday: "Any petitions for increase in transport fares as a result of the increase in oil prices may still be premature."
Perez said the requests for fare hikes may still be untimely because transport fares did not go down when local fuel prices were rolled back earlier this year.
He added that the latest oil price adjustment has yet to exceed the sum of the total oil price cuts effected last year.
From September to December 2001, the cumulative decrease in oil prices totaled P1.44. This year, oil companies reduced prices twice, in January and in June, equivalent to 51 centavos per liter, bringing the total oil price reduction to P1.95 per liter.
Perez also said that the latest 30-centavo price adjustment reflects trends in the international oil market after the US government issued statements that it is developing war plans against oil producer Iraq, which is allegedly linked with international terrorist groups.
Perez said the price of Dubai crude, the benchmark used by oil companies for setting their prices, rose to $24.66 per barrel in July from $23.91 per barrel in June.
This month, the price trend has not changed, Perez said. Between Aug. 1 and 9, Dubai crude oil prices averaged above $24.21 per barrel.
He said the present glut in the global oil market, wherein the members of the Organization of Petroleum Exporting Countries (OPEC) produced more oil than their agreed quota last June, has cushioned the effect on oil prices of the US government’s statement.
The peso depreciated against the dollar to 50.61 in July from 50.43 in June. The fluctuations of the peso-dollar exchange rate and the prices of crude oil are among the main factors that affect domestic fuel prices.
Last Saturday, Petron Corp., Caltex Philippines and small oil companies raised their prices by 30 centavos per liter. Pilipinas Shell Petroleum Corp. followed suit by increasing its prices by 30 centavos last Sunday.