Petron, Total hike gas prices by 40¢

Petron Corp. and Totalfinaelf Philippines Inc. raised their pump prices yesterday by 40 centavos per liter and their liquefied petroleum gas prices by 50 centavos per kilo.

"Due to continuous rise in Mean of Platts Singapore prices, Total will increase prices by 40 centavos per liter for all fuel products and 50 centavos per kilo for LPG effective 12 noon (yesterday)," Total corporate communications manager Rona Quejada said. MOPS is used by small oil players as a gauge for pricing their products.

Citing the sustained rise in crude prices and the continued depreciation of the peso against the US dollar, Petron said it would implement a 40-centavo per liter price hike for all its products excluding fuel oil as well as a 50-centavo increase per kilogram in LPG effective 8 p.m. yesterday.

Petron noted that since May this year, the spot price of the bellwether Dubai crude has risen by more than $3 per barrel from $24.36 to $27.63 month-to-date August. The peso also depreciated by 2.37 against the greenback over the same period.

"From June until today, crude prices and the foreign exchange rate should reflect a P1.66 per liter increase in product prices. This latest adjustment brings us to an average increase of only 90 centavos per liter," public affairs manager Virginia Ruivivar said.

Despite the upward trend in crude and forex since June, the company only started adjusting prices in the first week of August.

The suggested retail price for XCS Plus and DieselMax will now be P21.09 per liter and P15.85 per liter, respectively. Petron’s LPG brand "Gasul" will retail between P271-P281 per 11-kilo cylinder.

Eastern Petroleum Corp. said it is still computing its price increase. "We are still computing. But it will not be less than 40 centavos," EPC chairman Fernando Martinez said.

The two other major oil players, Pilipinas Shell Petroleum Corp. and Caltex Philippines Inc., have yet to announce their oil price adjustment as of yesterday afternoon.

Shell external affairs general manager Roberto Kanapi said "while a price increase is inevitable, our management has not yet decided. As of yesterday, there is no decision yet (if we will increase our prices)," Kanapi said.

He said though there was no increase in the contract prices of LPG, the depreciation of the peso by about P2 might have created pressure to jack up prices of socially sensitive LPG.

Caltex last Aug. 20 increased its prices by 30 centavos per liter and a day after rolled it back when other oil players decided not to follow suit.

Oil companies have been saying that price increases are expected in the next few weeks as world crude prices continue to soar.

The last increase in local pump prices was in March this year when the price of gasoline was increased by 80 centavos per liter and diesel by 70 centavos per liter. World oil prices, however, immediately fell after the attack in Iraq. Consequently, local pump prices 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.

For Aug. 22 alone, the average Dubai crude stood at $27.93 per barrel. The average for Aug. 1-22 was $27.62 per barrel compared to $26.72 the month previous. Dubai crude is the benchmark being used by major oil firms in pricing their products.

The foreign exchange rate average for Aug. 1-22 reached P54.94 to a dollar compared to July’s average of P53.77.