Oil companies lift price freeze

Manila, Philippines -  Oil firms have implemented price increases that were deferred for flood-stricken areas.

Major firms Pilipinas Shell Petroleum Corp. and Chevron Philippines Inc., and independent oil players Total Philippines Corp. and Eastern Petroleum Corp., lifted the price freeze early yesterday.

The companies increased prices of premium and regular gasoline by P1.80 and P1.70 per liter, respectively.

Prices of diesel rose by P1.50 per liter and kerosene by P1.60 per liter.

“Price movement effective only in areas covered by our earlier announced price freeze last week,” Shell told The STAR in a text message.

Specifically, the price adjustments were effective in the entire National Capital Region, Pampanga, Bulacan, Bataan, Zambales and Rizal provinces.

It is also effective in Sta. Cruz and Pagsanjan in Laguna and Bacoor, Kawit and Rosario in Cavite.

Last week, oil companies did not jack up pump prices amid torrential rains and floods.

Globally, prices continue to rise due to tensions in the Middle East and expectations that economic growth will accelerate, thereby increasing demand for oil.

Year-to-date, net increase for gasoline hit P3.23 per liter while diesel recorded a net decrease of 16 centavos 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 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.