Caltex raises prices

One of the country’s three major oil players, Caltex Philippines Inc., announced the increase of its oil prices by 30 centavos per liter effective today.

Caltex said they have been compelled by the market to jack up their prices citing "market forces."

Other major oil companies Petron Corp. and Pilipinas Shell Petroleum Corp. however, have not announced any increases.

"At this time, we still have to study the market. No decision yet on the latest price adjustment," Petron said in a statement.

Shell external affairs general manager Roberto Kanapi also said "while there is pressure for us to adjust prices, we still need more time to look at our figures. We decide to hold on to oil prices for market consideration."

Kanapi assured prices of LPG (liquefied petroleum gas) would not be adjusted by the increase. "There was no change of contract prices of LPG for the month of July and August at $264 per barrel," he said.

Other oil distributors said they are still assessing the market situation before deciding in adjusting their pump prices.

"Not yet but we will decide today (Aug. 21)," Eastern Petroleum Corp. chairman Fernando Martinez said.

Following the Caltex announcement, Energy Secretary Vincent Perez yesterday reiterated his call for the public to compare prices of various retail gasoline companies.

"I reiterate my call to consumers to exercise their power of choice in the light of the oil price increase effected by Caltex," Perez said.

Oil companies earlier warned of the increasing trend in world crude prices for the next few weeks.

Last week, Martinez said consumers will likely bear another P0.20 to P0.30 per liter price increase within the month after the P0.50 average increase on Aug. 7 and 8.

New players, EPC, Total and Flying V initiated the price increase on Aug. 7 followed by other players the following day.

As of Aug. 20, the prices of Dubai crude, benchmark of major oil firms in pricing their products, averaged $27.70 per barrel compared to July’s $26.70 or an increase of $1 per barrel.

The last increase in local pump prices was in March this year at the height of speculations generated by the impending US-Iraq war.

At the time, the price of gasoline was increased by 80 centavos per liter and diesel by 70 centavos.

World oil prices, however, immediately dropped following the attack in Iraq. Consequently, local pump prices also dropped in the succeeding months.

Between March to May this year, oil companies have cut pump prices by five times or equivalent to P1.50 per liter for gasoline and diesel and P1.10 per liter for kerosene.