Group sees rollback in gas prices next month

MANILA, Philippines - Consumer & Oil Price Watch (COPW) chairman Raul Concepcion expects a rollback in the prices of gasoline and other petroleum products next month.

In a press briefing, Concepcion said there was a recent increase in the pump prices of oil products due to shutdowns of refineries by the major oil firms.

“COPW will accept that pump prices went up because the oil refiners used MOPS (Mean of Platts Singapore), as they had to import finished products like diesel, gasoline, and auto-gas when they shut down their refineries for maintenance in December and January,” Concepcion said.

MOPS is the benchmark being used by oil importers in pricing their products. Oil refiners like Petron Corp. and Pilipinas Shell Petroleum Corp. have been using Dubai crude as their price gauge.

Once the oil refiners have finished their refinery maintenance, prices should start going down.

“However, when the oil refiners resume refining in March, the benchmark will be Dubai or US NYMEX Crude and COPW expects automatic rollbacks or else, they will have to explain to the Department of Energy and the general public why they cannot,” Concepcion said.

This developed, as Seaoil increased the pump prices for gasoline by 50 centavos per liter and 25 centavos per liter for diesel at midnight of Feb. 17.

He also urged Energy Secretary Angelo Reyes and Justice Secretary Raul Gonzalez to exercise their powers under the Oil Deregulation Law (RA 8479) to protect consumers and ensure transparency.

“The Department of Energy (DOE) and Department of Justice (DOJ), over the past 11 years, have been passive in enforcing the safeguard provision built into the Deregulation Law,” Concepcion said.

“Things have changed after 11 years as oil prices have become more and more volatile which makes it more urgent for the DOE and DOJ to exercise their functions to ensure transparency in oil pricing,” he added.

Concepcion said to ensure that the pump prices of diesel and gasoline are fair and reasonable, the DOE and DOJ are mandated to require the oil companies to submit the value and volume of their existing inventories which include ocean freight, insurance, biofuel additives, cost to deliver from dock to depot and to the gas stations, and the details of their forward contracts.”

COPW also urged the DOE and DOJ to ask oil refiners Shell and Petron and multinational importers Chevron Philippines and Total Philippines that control 80 percent of the market to explain if they bought forward for March delivery at $33.98 NYMEX on Feb. 12 and $37.51 for April delivery.

Concepcion said the DOE and DOJ should ensure that the transport sector, truck haulers, private motorists, and the riding public would benefit from the lower prices in March and April.

“This will ensure transparency and accountability that the prices of crude oil and finished products are in accordance with global pricing.”

The Organization of Petroleum Exporting Countries (OPEC) announced that they would meet in Vienna on March 15 to further cut production and increase prices.

COPW is also soliciting the help of consumers to provide information on pump prices in their respective areas so that the price watchdog group will have comparative analysis on the prices of diesel, gasoline and liquefied petroleum gas.