Oil firms warn of higher oil prices this week

MANILA, Philippines - Consumers might wake up to higher oil prices this week given continued external developments jacking up international prices, oil firms warned yesterday.

“It is fair to assume that prices will inevitably have to move upward, due mainly to the tension in Iran,” SeaOil Philippines Inc. said.

“The announcement of another bailout for Greece is also seen pushing prices upward,” it added.

For independent oil player Eastern Petroleum Corp., prices of gasoline and diesel might increase by P1 per liter and P0.50 per liter, respectively, an official said.

An official of major oil firm Petron Corp. said they might jack up prices by P1 per liter for gasoline and P0.30-0.50 per liter for diesel and kerosene.

Geopolitical issues in Iran are squeezing supply while creating increased demand for oil inventory.

Euro zone finance ministers yesterday approved the second tranche of the bailout package for debt-ridden Greece worth 130 billion euro, removing the risk of a sovereign debt default next month and a possible global contagion.

Last Feb. 14, oil companies implemented a fresh round of oil price hikes to reflect an increase in world prices.

Petron, Pilipinas Shell Petroleum, Chevron Philippines, SeaOil and Total Philippines increased pump prices of regular and premium gasoline by P0.50 per liter and diesel by P0.70-0.85 per liter.

It is the sixth oil price increase this year as against two price reductions.

As of last week, the year-to-date net increase in prices stood at P3.60 per liter for gasoline and P2.15 per liter for diesel, data from the Department of Energy (DOE) showed.

On Monday, Malacañang ordered the release of an additional P200 million as subsidy for 100,000 public utility drivers and approved their tax discounts from manufacturers and dealers of spare parts for public utility vehicles.

Militant labor groups, on the other hand, are threatening to mount another “Welgang Bayan” to dramatize their protest against continuing fuel price increases.

Kilusang Mayo Uno (KMU) vice-chairman Lito Ustarez said various trade unions are now gearing for a nationwide protest action in the coming weeks.

“The Big 3 oil companies continue to rob us of our hard-earned income and the Aquino government continues to connive with them by doing nothing and acting as their spokesperson, so we are calling on Filipino workers and people to hold a nationwide protest this March,” Ustarez said.

Ustarez noted oil price hikes always result in increases in prices of basic goods and services and add financial burden to workers who are not receiving any significant wage hike.

The KMU yesterday staged a picket at a Petron gasoline station in Pedro Gil corner Taft Avenue in Manila to protest the impending P1 per liter increase in the price of gasoline and P0.40 increase for diesel.

KMU said diesel fuel has been overpriced by almost P9 per liter and unleaded gasoline by more than P10.

“While we, their consumers, are suffering from hunger and poverty, the three big oil companies are exploiting price movements in the world market to increase their profits and get more from us. It’s no wonder they are raking in huge and ever-increasing profits,” KMU said.

KMU blamed the Oil Deregulation Law for the unstoppable increase in prices of gasoline and other petroleum products.

As oil companies increase prices, KMU said, the government benefits from it since the 12 percent value added tax (VAT) pushes up tax collections.

Ustarez said workers would push anew for the junking of the Oil Deregulation Law as well as VAT on petroleum products during the planned nationwide strike. – With Mayen Jaymalin