"This challenge, which is largely beyond our control, is expected to stay for an extended period but this administration shall continue to seek ways to cushion the dire effects of rising prices on the public welfare," Press Secretary Ignacio Bunye said in a statement.
Bunye also reiterated the Palace’s appeal for Congress to immediately pass the biofuel act to enable the government to maximize indigenous and alternative fuel sources.
"By sparking a biofuel industry, we would not only conserve our precious foreign exchange but also create more jobs in the countryside," he said.
Four of the country’s oil companies raised the pump prices of their products yesterday by 50 centavos per liter and 50 centavos per kilo for liquefied petroleum gas (LPG).
Petron Corp., Total Philippines Inc., Unioil Philippines and Eastern Petroleum Corp. said they needed to adjust their prices to reflect the continuing rise in world crude prices.
But the oil companies said they would continue to give discounts for diesel products.
Other oil firms have yet to announce if they will also adjust their prices.
Oil firms had indicated that they would increase their prices last weekend due to the continuing rise in the Dubai crude average.
Dubai crude is the benchmark used by local oil refiners in pricing their products.
Last July 6, the average Dubai crude hit an all-time high of $69.52 from $65.22 in June.
The surge in international crude prices is triggered by renewed political tension in Iran and South Korea.
The rise in demand in the United States with the start of the driving (summer) season is also seen to trigger the renewed volatility of crude prices in the global market.
The latest oil price hike was the first time that oil companies raised their prices for July.
Last month, oil companies raised the price of gasoline four times, but diesel prices remained stable.
The enactment of the proposed biofuels bill would spark a Philippine biofuel industry that would not only conserve the country’s precious foreign exchange but also create more jobs in the countryside. — Aurea Calica, Paolo Romero