Oil firms jack up gasoline prices by 80¢ per liter

MANILA, Philippines - Oil firms jacked up pump prices of gasoline yesterday as countless motorists and commuters struggled through flooded streets.

Major players Pilipinas Shell Petroleum and Petron Corp., and independent player Total Philippines increased prices of regular and premium gasoline by 80 centavos per liter.

The oil firms also raised prices of diesel and kerosene by 40 centavos and 30 centavos per liter, respectively.

“This is to reflect movements in the international oil market,” Petron said.

Independent player Seaoil Philippines has deferred its price hike until today in consideration of the torrential rains that flooded most parts of Metro Manila.

Year-to-date, net increase for gasoline hit P1.43 per liter while diesel recorded a net decrease of P1.68 per liter, data from the Department of Energy (DOE) showed.

Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can price their products based on market forces so as to encourage competition.

The deregulation law also prohibits the government from intervening or influencing the pricing schemes of the oil companies.

However, the government, through the DOE, has monitoring powers. For monitoring purposes, the DOE has requested the firms to report to the department before any price adjustments.

Meanwhile, the Independent Oil Price Review Committee (IOPRC) will release the results of its study on allegations of excessive profits of oil firms by the end of the month, IOPRC chairman and University of the Philippines economist Benjamin Diokno said in a phone interview.

Diokno said the panel is still conducting meetings to finalize the study. He declined to reveal highlights of the study.