Oil firms raise gasoline prices, roll back diesel

Several oil firms rolled back the prices of diesel and kerosene by 50 centavos per liter but increased the prices of gasoline by 50 centavos effective 12:01 a.m. today.

PTT Philippines Corp. yesterday initiated a price cut for its diesel products by 50 centavos per liter but said it will also implement a price increase for its gasoline products by 50 centavos per liter. 

Pilipinas Shell Petrolum Corp., Chevron and Total will also carry out the same price adjustment as PTT.

Seaoil Philippines, on the other hand, implemented a higher P1 per liter rollback on diesel and kerosene as of 6 p.m. yesterday. Petron Corp. rolled back diesel and kerosene prices by 50 centavos but made no adjstments to the price of gasoline products.

As of Jan. 15, 2009, the average Dubai crude, benchmark of oil refiners, stood at $45 per barrel from $41 per barrel in December 2008.

Gasoline at the Mean of Platts Singapore (MOPS), the price gauge used by oil importers, averaged $49 per barrel as of Jan. 15 from $41 per barrel average last month.

Meanwhile, the Department of Energy (DOE) sees the supply of liquefied petroleum gas (LPG) or cooking gas to normalize this week but foresees LPG price to increase by another P3 per kilo next month.

“The contract price for January is out and went up by $50 per metric ton – which is equivalent to P2 per kilo on the consumer level, but you have to add the VAT and other factors (i.e. premiums, among others). For February, the anticipation is that the contract prices will increase anywhere from $70 to $100/metric ton translating to P3 per kg at the outlet, but please remember this is projected and not something that ensures world prices will behave,” Energy Secretary Angelo Reyes said during an LPG stakeholders’ meeting yesterday.

As of January 2009, the contract prices of LPG in the international market stood at $380 per metric ton from $336.50 per MT in December 2008.

Last week, LPG suppliers raised their prices by P2 per kilo or P22 per 11-kg cylinder.

Reyes also said they have already ironed out the “kinks” in the LPG supply and consumers may expect LPG supply to be back to normal.

The energy chief said various government agencies are coordinating with each other to finally put an end to this supposed problem.

“We will have government, through the DOE-Department of Justice (DOJ) Task Force and in coordination with DTI and LGUs, to monitor prices,” Reyes said.

Major suppliers of LPG, during the meeting, promised that the supply of cooking gas will be sufficient in the next few weeks.

Concepcion: Weekly rollback

In a related development, Consumer and Oil Price Watch (COPW) Chairman Raul Concepcion has urged oil companies to implement a weekly rollback of P2 per liter.

“Our computations based on price movements in the world market show that the recent rollback totaling P1 is P3 short of our expectations,” Concepcion said.

He said he is also planning to seek an audience with Congress to once and for all end the problem of price transparency and LPG shortage.

The COPW, he said, is wondering why the DOE-DOJ Task Force has not asked the oil companies to explain why they did not enter into a forward contract for delivery in February when the NYMEX price dropped to $35.25 on Dec.24 and again on Jan. 15 when the price dropped to $35.40 with the February contract expiring today.

“We are again requesting the DOE to immediately release to the public, in the interest of transparency, the long overdue inventory of the oil companies to include volume and existing stocks on hand plus the incoming shipments as of January 16th,” Concepcion added.

The COPW chief also welcomed the DOE and DTI’s initiative to look at the LPG problem to protect the interest of the consumers.

In the spirit of transparency and public welfare, COPW is asking that the total capacity of LPG of the various suppliers – Petron, Shell, Liquigaz, Total, Petronas and Pryce Gas – be made public, to include the value and volume of their inventories.

“The government agencies concerned must act decisively to dispel fears of supply, and heaven forbid, price manipulations,” Concepcion said.