Oil firms hike prices for 3rd time this month

MANILA, Philippines - Oil companies raised local pump prices yesterday, the third straight week this month.

In their respective announcements, oil firms said the adjustments reflect movement in the global crude market.

Petron Corp., the country’s biggest oil refiner, was first to announce Monday night a 30-centavo per liter increase for gasoline, 40 centavos for diesel and 45 centavos for kerosene.

“This reflects movements in the international oil market,” Petron said.

Pilipinas Shell Petroleum Corp. announced a 30-centavo increase for gasoline, 45 centavos for kerosene and 40 centavos for diesel.

Caltex Philippines Inc. said it is raising gasoline prices by 30 centavos per liter,  40 centavos for diesel products and 45 centavos for kerosene.

Independent oil players Seaoil Philippines and Total Philippines also raised pump prices.

Energy Secretary Carlos Jericho Petilla said the latest price increase is “market-driven,” adding “there are risks in the supply route.”

He said the energy department is keeping a close watch on the meeting of the Organization of the Petroleum Exporting Countries (OPEC) set this month.

Petilla said prices could go down if OPEC decides to increase its supply.

The oil price hike comes after Manila Electric Co., the country’s biggest electricity distributor, announced a 12-centavo per kilowatt-hour (kwh) cut in the May electricity bills due to lower transmission charges.

A household using 200 kwh will have a P24 reduction in its May electricity bill.

The transmission charge registered the biggest decrease among the different components of electricity cost at around 12 centavos per kwh.

This was mainly due to lower ancillary service charges from the National Grid Corp. of the Philippines, which operates the country’s transmission highway.

Systems loss charge, lifeline rate subsidy, value added tax and local franchise tax, had a cumulative reduction of 8 centavos per kwh.