Oil firms raise pump prices

MANILA, Philippines - Oil companies increased local pump prices effective today, ending the series of oil price cuts enjoyed by consumers for at least 26 times this year.

Petroleum players hiked gasoline prices by P0.30 per liter and kerosene prices by P0.10 per liter but kept diesel prices unchanged.

Seaoil Philippines, an independent oil company, was the first to issue an advisory, saying that it would adjust its pump prices effective 12:01 a.m., Dec. 30 by 30 cents per liter for gasoline and 10 cents per liter for kerosene.

Petron Corp., the country’s biggest oil refinery, also issued a similar announcement.

“Petron will implement the following price increases (VAT inclusive) effective 6 a.m., Dec. 30: P0.30 per liter for gasoline and P0.10 per liter for kerosene. No adjustment for diesel. These reflect movements in the international oil market,” Petron said.

Pilipinas Shell Petroleum Corp. issued its advisory last night.

The price spike comes on the heels of attacks on Libya’s main oil depot, which triggered uncertainties in the global crude market.

According to wire reports, Islamists killed at least 22 soldiers last week to seize some of Libya’s main oil facilities as fighting in the region between government forces and militias continued.

Fernando Martinez, president of Eastern Petroleum Corp. and the Independent Philippine Petroleum Companies Association (IPPCA), has urged the government to take advantage of lower gasoline prices before serial price spikes return with a vengeance.

“The government should seize the opportunity to recoup some savings and put it in much needed infrastructure and mass transit. Other governments such as Indonesia are taking advantage by cutting their subsidies. While we have done away with subsidies after the oil deregulation, we have enormous opportunity to capture the oil savings,” Martinez has said.

For now, the average common price of diesel has gone down to P31.40 per liter while gasoline is at P42 per liter, according to data from the Department of Energy.