MANILA, Philippines - Oil companies increased yesterday pump prices due to the continuing rise in international oil prices.
Shell, Petron, Chevron, and Phoenix increased their diesel and kerosene prices by P1.25 per liter; premium gasoline by P1 per liter and regular gasoline by 50 centavos.
Energy Secretary Angelo Reyes announced that Executive Order (EO) 850 was signed by President Arroyo last Dec. 23 that took effect last Jan. 1, 2010 which would lower the tariff on imported petroleum products from three percent to zero.
Reyes said the impact of the EO on domestic pump prices would be a reduction of 70 centavos per liter and would be felt by consumers next week.
“This is good news. So whatever the price of oil next week, it will be reduced by 70 centavos per liter,” he said.
He said the tariff cut will apply to imported petroleum products that are liquid, and all importations within the Association of Southeast Asian Nations (ASEAN) trade area.
“All six ASEAN countries. Philippines, Indonesia, Malaysia, Thailand, Singapore and Brunei. So that is good news,” he said.
Reyes said there was an increase of $3 per barrel during the past week that resulted in the price adjustments.
“We can see it from the trend from the previous week as against last week. We should remember that for every $3 increase in the price of crude, that would be reflected in the local pump price as P1 per liter increase. That’s our guide or rule of thumb,” he said.
The average Dubai crude, the benchmark being used by oil refiners, stood at $78 per barrel as of Jan. 4 as against $75 as of end-December 2009.
– With Rainier Allan Ronda