Fuel prices rise this week by P1.30/liter

MANILA, Philippines - Fuel prices rose sharply for the second time this week, with energy officials citing tensions in Iran as well as brighter growth prospects in the European Union as main reasons for the uptrend.

Major players Petron Corp., Pilipinas Shell Petroleum Corp. and Chevron Philippines Inc. and independent firms Seaoil Philippines Inc., Eastern Petroleum Corp. and Total Philippines Corp. increased prices of regular and premium gasoline by P1.30 and P1.20 per liter, respectively.

The companies also raised prices of diesel by P1.40 per liter and kerosene by P1.50 per liter.

Petron and Seaoil said the price adjustments yesterday covered areas not affected by floods early this month.

In a text message, Petron and Shell said the price adjustments in previously flooded areas would take effect at 12:01 a.m. today.

Delayed price adjustments will take effect in the entire National Capital Region or Metro Manila, Pampanga, Bulacan, Bataan, Zambales and Rizal provinces. It also includes Sta. Cruz and Pagsanjan in Laguna and Bacoor, Kawit and Rosario in Cavite.

“If we look at international prices, last week was higher than the previous week,” Zenaida Monsada, Oil Industry Management director of the Department of Energy (DOE), said in a phone interview.

“The reason is optimism in the growth of the European Union and increased tensions in Iran,” Monsada said.

Tensions are mounting in the Middle East as Israel threatens to stop Iran’s nuclear program by force.

Last Monday, most of the oil firms lifted the week-long price freeze in areas affected by torrential rains and floods.

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.

Year-to-date, net increase in gasoline prices is P4.43 per liter while diesel recorded a net decrease of P1.56 per liter, data from the DOE showed.

In a statement, militant group Bagong Alyansang Makabayan (Bayan) called the latest price hike “corporate greed at its worst.”

“We are again approaching April 2012 price levels. If the price hikes continue, we may witness a new record high,” said Bayan secretary general Renato Reyes Jr.

Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms may price their products based on market forces.

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