Oil prices up, LPG price down

MANILA, Philippines - Consumers bid adieu to 2012 with higher fuel prices as oil firms jacked up pump prices yesterday following higher global benchmark prices.

But cooking gas prices will welcome the year with a P2 per kilogram (kg) price rollback, with prices expected to further drop until the summer season.

Independent retailers belonging to the party-list group Liquified Petroleum Gas Marketers’ Association (LPGMA) rolled back their LPG prices by P2 per kilo or P22 for every 11-kg cylinder at midnight last night.

Major players Petron Corp. and Pilipinas Shell Petroleum Corp., and independent firms Seaoil Philippines Inc. and Total Philippines Corp. marked up prices of premium and regular gasoline by 75 centavos and 65 centavos per liter, respectively.

The companies also jacked up prices of diesel by 20 centavos per liter and kerosene by 30 centavos per liter.

“This is to reflect price movements in the international petroleum market,” Seaoil said.

International benchmark prices rose last week as investors remain wary of continuing political tensions in oil producing Middle East, particularly in Syria and Iran.

This week’s price adjustment, which is the second consecutive weekly price increase, was effective yesterday.

But Petron said it is still implementing a price freeze in Compostela Valley and Davao Oriental, which were battered by typhoon “Pablo.”

Last week, major and independent oil players increased prices of premium and regular gasoline by 50 centavos and 55 centavos per liter, respectively. Prices of diesel also rose by 45 centavos per liter and kerosene by 60 centavos per liter.

Since the start of the year, the net increase for gasoline hit P1.66 per liter while diesel posted a net decrease of P1.33 per liter, Department of Energy (DOE) data showed.

On the other hand, consumers will welcome the year with lower LPG prices for the second straight month.

Last month, LPGMA cut cooking gas prices by P4 per kg.

LPGMA is a group of independent cooking gas retailers in Metro Manila and neighboring areas. Its members include Island Gas, Regasco Gas, Pinnacle Gas, Cat Gas, M-Gas, Omni Gas and Nation Gas.

Under Republic Act 8479 or the Downstream Oil Industry Deregulation Act of 1998, oil firms can set the prices of petroleum products based on market forces to encourage competition.

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

However, the government, through the DOE, has the power to monitor prices.

For monitoring purposes, the DOE has requested the firms to report to the department any price adjustments.   

Amid the rash of accidental fires, Ty renewed his plea for the passage of a bill proposing to establish a one-time exchange program for the benefit of consumers possessing dilapidated LPG cylinders. – With Jess Diaz