Gov’t seen helpless on oil price hikes

Energy Secretary Jose Rene D. Almendras. INQUIRER FILE PHOTO

Energy Secretary Jose Rene D. Almendras said on Friday the government could not impose anything on local oil companies given the deregulated nature of the current downstream oil business in the country.

He issued the statement as the Department of Energy started studying the latest move of local oil companies to adjust prices at least twice a week in an effort to reflect more accurately the movement of prices in the global oil market.

The energy chief said he was banking on the fact that the government and the oil companies would find a “convention” in terms of reflecting the volatility of world oil prices on the local pumps.

“It’s not about us saying ‘no’ to it. It’s about working together to determine whether this is going to be better or not   for the Filipino public,” Almendras said.

At present, the DOE is studying how the scheme should be modeled—specifically on the number of days to be used for the first adjustments and so on.

“We’re saying, let’s discuss it. My problem is, if prices are going up, you’re going to split it into two tranches. But if prices are going down, you also split it into two and that’s not fair for consumers because I would prefer that the decline in oil prices be reflected on the pumps faster,” Almendras explained.

For the second time this week, oil companies raised fuel prices beginning Friday. Pilipinas Shell, Total Philippines, Chevron and PTT Philippines raised prices of premium and regular gasoline by 70 centavos a liter, and of diesel, by 25 centavos a liter.

Petron raised prices of gasoline by P1.60 a liter and of diesel and kerosene by 95 centavos a liter as it was not able to adjust prices earlier this week, unlike its competitors.

According to Energy Undersecretary Jose M. Layug Jr., the price adjustments made by oil companies were generally lower than the estimates of the DOE.