3 oil firms raise prices by 50¢

Two of the country’s major oil players increased their pump prices by 50 centavos per liter effective yesterday.

Newcomer Flying V also joined Petron Corp. and Caltex Philippines in increasing the prices of their petroleum products. The three companies also increased the price of liquefied petroleum gas (LPG) by 50 centavos per kilo, or P5.50 for every 11-kilo cylinder.

The oil firms said the latest price adjustments included the impact of the two-percent hike in the expanded value-added tax (EVAT) rate from 10 percent to 12 percent.

The government earlier tried to persuade oil firms to hold off any upward price adjustments since the implementation of the additional EVAT last Feb. 1.

The increase, however, was mainly brought about by the continued rise in crude costs in the international market, top officials of the firms pointed out.

Dubai crude, the benchmark for local refiners, went up from an average of $58.44 per barrel last January to $59.85 this month. It averaged only $53.20 last December and $51.39 in November.

The average Mean of Platts Singapore (MOPS), the main barometer for oil importers, on the other hand, went down slightly to $65.51 per barrel for unleaded gasoline from $66.79 last month.

The figures are still higher from $60.87 and $61.01 in Nov. 2005 and Dec. 2005, respectively.

MOPS diesel prices likewise went down to $70.26 per barrel this month from $73.14 in January. However, prices were higher than the $64.84 cost in Nov. 2005 and $67.03 last December.

LPG prices, meanwhile, averaged $625.5 per metric ton this month, a huge increase from $582 last month and $538 in December 2005.

Inclusive of the EVAT, local petroleum prices currently range from P36.31 to P38.85 per liter for unleaded gasoline; P30.85 to P33 for diesel; P33.4 to P34.72 for kerosene; and P496.21 to P540 for a standard 11-kilo LPG tank.