Major oil firms hike gasoline prices by P1 per liter

MANILA, Philippines - Major oil players jacked up their prices yesterday, a day after the small petroleum companies announced an increase.

Petron Corp. and Chevron Philippines late Tuesday evening announced that they will raise prices of gasoline by P1 per liter and diesel by 75 centavos per liter effective Jan. 13.

Phoenix Petroleum Philippines, Inc., the bulk of whose stations are located in Southern Philippines, also announced a similar adjustment in its pump prices.

Last Monday, Flying V and Seaoil said they have to raise their pump prices by P1 per liter due to the upward price movement of imported petroleum products.

The price increases came despite the expected reduction in pump prices brought about by the issuance of an executive order (EO) to lower tariff on imported fuel from Southeast Asia to zero percent.

Energy Secretary Angelo Reyes earlier announced that the impact of the EO would be 70 centavos per liter on imported pump products.

“The effect of the EO on the pump price is P0.70 per liter, so we should see the effect next week. So whatever the price will be next week, there will be a reduction of P0.70 to conform with the EO.”

However, oil firms said their current inventory is not yet covered by the tariff reduction.

The EO was signed last Dec. 23 and took effect Jan. 1.

Flying V, which initiated the latest price hike, explained that they are waiting for the guidelines on the EO so they could implement it.

“The oil firms will roll back the 70 centavos once BOC (Bureau of Customs) implements the zero tariff since importation is only beginning to come in. BOC must disseminate the IRR (implementing rules and regulations) to the ports so that implementation can be done,” Joey Cruz, Flying V spokesman, said. – Donnabelle Gatdula