Fuel, LPG prices up anew

Despite the announcement of the Department of Energy (DOE) that the government is finalizing the guidelines for a possible tariff cut on imported fuel products, oil companies have raised their pump prices by 50 centavos per liter.

Petron Corp., Pilipinas Shell Petroleum Corp., Caltex Philippines Inc., Total Philippines Inc., PTT Philippines and Eastern Petroleum Corp. said they have to adjust prices because of the continuing increase of the prices of crude oil and finished petroleum products in the international market.

For the month of September, Dubai crude, the benchmark being used by oil refiners in pricing their products, increased by an equivalent of P1.85 per liter.

“Prices moved since September this year, exclusive of value-added tax (VAT), now total P1.34 for gasoline, P1.78 for diesel and kerosene,” Petron said.

Liquefied petroleum gas (LPG) dealers Petron, Shell, Caltex and Total also raised the price of their LPG products or cooking gas by 50 centavos per kilo.

International LPG contract price, so far, has increased by P3.

It can be recalled that the oil firms did not move their prices last week in anticipation of the supposed tariff cut on imported fuel products being mulled by the DOE and the Department of Finance (DOF).

But last Friday, Energy Secretary Angelo Reyes admitted that the implementation of the proposed tariff reduction still hinges on the trigger levels that have yet to be finalized by the DOF.

Reyes said the DOF is still studying the figures, which will be revenue neutral for the government.

In the past, the reduction in duties imposed on imported fuels was also used by the DOE as one of the mitigating measures to cushion the impact of the rising crude prices on domestic oil consumers.