RP still has one of lowest fuel prices in Asia, says oil company executive

The Philippines still enjoys one of the lowest fuel prices in the Asia-Pacific region despite prices of crude oil and finished petroleum products hitting all-time highs in recent weeks, a ranking official of an oil company said.

"Since the Philippines is wholly-dependent on crude and product imports, we are subject to the price movements of the international oil markets," the official said.

But data from the Department of Energy (DOE) shows that as of March 2004, the pump prices of gasoline and diesel in the Philippines stood at P23.02 and P17.84 per liter, respectively.

These prices are lower compared to the equivalent of Hong Kong’s P82.74 and P45.71; Australia’s P44.92 and P40.11; Singapore’s P44.23 and P24.43; and Thailand’s P24.22 and P20.80.

The official said while the market continues to exhibit an upward trend due to a combination of external factors, despite this, we still have one of lowest fuel prices in the world."

He added that most countries which have lower fuel prices than the Philippines produce their own crude oil.

He noted that Dubai crude, a benchmark for prices in the Asian region, is hovering above the $32 per barrel level mainly due to OPEC’s decision to cut oil output by one million barrels a day, as well as strong demand from China.

According to the official, high prices continue to be supported by the onset of summer driving season in the US and tight fuel specifications in key states, including California and New York.

"It is unfortunate that some interest groups use pricing as an issue to further their respective agendas," the official added.

He further said that "the rise in fuel prices is not just restricted to the Philippines but is a world-wide phenomenon."

The energy department said that Dubai crude has hit $31.90 per barrel last March 24, the highest level since the US-Iraq war. At the height of the US-led war against Iraq, Dubai crude peaked at $31.18 per barrel.

Average-to-date price of Dubai crude is now at $30.91 per barrel or $2. 30 higher than the $28.61 per barrel average in February. Regional prices of unleaded gasoline have been steadily increasing, averaging at $44.23 per barrel in March, from $39.87 per barrel in February.