Department of Energy chief to summon oil firms

MANILA, Philippines - Energy Secretary Angelo Reyes will summon anew the oil companies that raised their prices recently.

Consumer and transport groups have complained that they were caught by surprise by the oil firms’ “unannounced” oil price hike.

It was learned that one oil firm had released its oil price advisory to media in the wee hours of the morning, at almost 4 a.m. of March 24, or a few hours after it had implemented the adjustment.

“The law (Oil Deregulation Law) says that they need to inform us 24 hours in advance,” he said.

To clear things up and put an end to the issue of petroleum players’ claim of “greater transparency,” Reyes said he “will ask the oil companies to explain the recent oil price increases.”

The oil companies’ explanation, Reyes said, should include the reason why they adjusted the prices and why they failed to advise the public on time.

On top of this, he said the Department of Energy (DOE) would also like to get the oil firms’ views on the recent oil pricing.

“(They) should tell us why the increase was made and what the prospects will be,” he said.

The DOE, he said, will subsequently announce to the public the oil companies’ reasons for their recent price adjustments.

“We will release these responses to the public,” he said.

Petron Corp., Pilipinas Shell Petroleum Corp., Chevron Philippines Inc., Total Philippines, Seaoil Philippines, Unioil Philippines and PTT Philippines raised their gasoline prices by P1 per liter and 50 centavos per liter for their diesel products.

Oil companies have decided to adjust their prices, as much as possible, on a weekly basis to be able to promote transparency in the industry.

The recent oil price hikes, the sources said, reflected the $8 to $10 per barrel increase in the price of oil in the international market.