Caltex raises pump prices by 39¢ per liter

Caltex Philippines Inc. (CPI) raised its pump prices anew by 39 centavos per liter for gasoline and diesel and 49 centavos for kerosene, while other oil firms expected to follow suit shortly.

For its part, Petron Corp. hinted that it is temporarily retaining current price levels as it is still assessing the market condition.

"We have no plans yet (of adjusting prices)," said Petron spokeswoman Virginia Ruivivar.

Pilipinas Shell Petroleum Corp. also said it would not adjust its prices, at least within the next 24 hours.

"We are still reviewing our figures," Shell external affairs manager Robert Kanapi said.

New players Eastern Petroleum Corp. and TotalFinaElf Philippines Corp. (TFE) said they would increase effective today their prices by 35 centavos and 39 centavos per liter, respectively.

There were no words yet from the other new entrants.

"This price adjustment is in response to competitive and global conditions," Caltex spokeswoman Marian Catedral said.

Caltex, a local subsidiary of Chevron Texaco Co., also cited other factors that affect price movements such as supply, demand, competition and market forces.

Catedral said her company is committed to openness and transparency pertaining price adjustments.

"We will continue to stay closely attuned to market and competitive conditions. Caltex will more accurately reflect these conditions by adjusting prices up or down in smaller amounts, more frequently, if necessary, with the frequency dictated by changes in market and competitive conditions. This will help cushion consumers from sudden big swings in prices," Catedral said.

She added that Caltex will continue to monitor market conditions and make price changes accordingly.

Caltex now sells its gasoline at P18.41 per liter for Vortex Gold, P17.86 for Vortex Silver, P14.54 for diesel, and P14.28 for kerosene.

The Consumer and Oil Price Watch headed by businessman Raul Concepcion said the oil firms’ under-recovery for August amounted to 39 centavos per liter.

TFE corporate affairs manager Rona Quejada cited depreciation of the peso against the dollar as reason behind their price hike.

"We endeavor to ease the impact of rising fuel prices on the consumer by implementing increases only when it’s absolutely necessary. This is one instance that TOTAL could only respond to market indicators," Quejada said in a statement.

Yesterday’s price hike was the second in less than one month, with the previous adjustments implemented last Aug. 11.

Average prices of Dubai crude, the benchmark used by local oil firms in setting their rates, stood at $26.24 as of Monday, compared to $25.24 for the entire month of August.

Meanwhile, opposition Sen. Teresa Aquino-Oreta branded the plan of local oil companies to jack up their prices anew as "too hasty and premature."

Oreta slammed the oil companies for taking the move even as external developments "show that crude prices could soften in the world market in the weeks ahead."

In a statement, Oreta said the oil firms should monitor price movements in the world market further to determine if a new round of increases was really necessary in the light of reports that Saudi Arabia plans to convince its fellow members in the Organization of Petroleum Exporting Countries (OPEC) to increase their production outputs to prevent prices from going out of control amid a global economic slowdown.