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Oil prices up; businessmen hope it’s temporary



MANILA, Philippines – Large oil firms jacked up prices on Tuesday amid foreign exchange and international product price movements.

Business leaders said entrepreneurs would bear the impact for now and expressed hope that such spikes were just temporary reactions to the volatile situation in Egypt.

Philippine pump prices are vulnerable to international prices and foreign currency movements as most of its fuel is imported.

From 6 a.m. Tuesday, Petron, Pilipinas Shell, and Chevron Philippines raised prices by P1.60/L for gasoline, P1/L for kerosene, and P0.75/L for diesel.

Other companies have yet to announce their respective price adjustments but they usually track those of the so-called Big Three, namely, Petron, Shell, and Chevron.

The three have cornered about two-thirds of the local market for fuel.

“We cannot do anything because of what is happening in Middle East particularly the volatile situation in Egypt. Businesses do not automatically pass on the impact of fuel price hikes to consumers so we tend to absorb it and just hope things will normalize soon,” Philippine Chamber of Commerce and Industry (PCCI) vice-chairperson Donald Dee said in a phone interview. The PCCI is an organization primarily made up of local businesses.

Dee said businesses were on a wait-and-see mode right now and would make adjustments “when the situation calls for it.”

“The fuel price spike may be temporary. We just hope there is no opportunistic reaction, say from the transport sector and utilities here. It’s then that businesses and workers will be more heavily hit,” Philippine Exporters Confederation, Inc. (PHILEXPORT) president Sergio R. Ortiz-Luis Jr. said. PHILEXPORT is an association of firms engaged in international trade.

Economist Cid Terosa of the University of Asia and the Pacific noted that the oil price increase would raise the cost of production of businesses and also affect the spending power of consumers.

“A P1 increase in the price of gasoline will raise producer prices by 4.2 centavos. Workers will suffer a cut in their disposable income since the increase in gasoline price will raise consumer prices,” Terosa said.

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Tags: Business , Consumer Issues , Markets and Exchanges , oil prices

  • Boypickup555

    Oil prices went up all over the world. Nobody can’t control oil prices except OPEC…so
    accept the reality of world oil prices.

  • http://www.businessinsider.com/the-art-of-war-sun-tzu-2011-5?op=1 Sun Tzu

    Price Fixing more fun in the Philippines!

  • Weder-Weder Lang

    Under PNoy’s administration, all the things that could go wrong are actually going wrong:

    ==> Fuel prices are going up up up.
    ==> Flood waters are rising up up up.
    ==> Unemployment is up up up.
    ==> Poverty incidence is up up up.
    ==> Market volatility is up up up.
    ==> Peso instability is up up up.
    ==> Burden on taxpayers is up up up.
    ==> Pork-barrel fraud is up up up.
    ==> Corruption is at an all time high high high.
    ==> PNoy’s budget proposal in 2014 is up up up up to P2,268,000,000,000.
    ==> With P2.268 trillion to be squandered in 2014, corruption will go up up up.

    PNoy is the worst president this nation ever had. A Chinese haciendero who enslaves landless Filipino peasant farmers. A liar who promised to distribute his hacienda but failed to do so to this day. In his upcoming SONA, PNoy has prepared a list of empty promises again for the next 12 months. In the same meaningless speech, PNoy will play the blame game again, blaming everything wrong in this country on Gloria, FVR, Erap, Marcos, Diosdado, Garcia, Magsaysay, Quirino, Roxas, Laurel, Osmena, Quezon, Aguinaldo, Lapu-Lapu and the Americans. Most glaringly, PNoy will forget to blame himself and his mama for all their own failures.

    The PSG is advised to bring more pacifiers, in case PNoy breaks down and throws one of his legendary tantrums again for the nth time. Wawa naman our baby president.

  • mekeni62

    ummmm not good for the SONA ito.

  • wawa2172

    The price of gasoline does not really reflect the world prices but in this country it subsidizes the price of diesel fuel use in jeepney. My car is gasoline feed so wala akong magagawa dahil ito ang sistima at tiis to the max na lang.

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