Oil firms seen raising prices by P4.50
Oil companies will likely raise prices by P4.50 a liter in three installments of P1.50 each in as many weeks to reflect the increase in cost of imported products from October 15, the prize freeze date imposed by Executive Order 839, industry sources said yesterday.
The price cap on oil products as well as other basic commodities is lifted effective today.
A staggered increase is certain, Eastern Petroleum CEO Fernando Martinez, chairman of the Independent Philippine Petroleum Companies Association, said.
"We can’t increase the prices in one week. We may do it in three tranches so the impact to consumers will be lessened. As to how much the first increase in price on Monday will depend on competitive forces," he said.
"We can’t decide yet until after we have been able to reflect the true costs of petroleum products. It’s very difficult to say at this time," he said.
Flying V chairman Ramon Villavicencio said his company is prepared to stagger the increase over a three-week period of around P1.50 per liter per week.
Malacanang said it is holding the oil companies to their commitment to stagger the price increases, give discount to the transport sector and provide assistance to typhoon victims.
Gary Olivar, deputy presidential spokesman, said President Arroyo will not hesitate to re-impose the price freeze in case of abuse by the oil companies.
"I am sure with what happened, things have become clearer for the oil industry and the public and now they understand that the President has the political will to make decisions for the benefit of the people," he added.
Last Friday, Arroyo also said there should not be any fare increase during the next six months.
But she said if world oil prices go above $82 per barrel, another dialogue would be convened to review the price agreement.
"(The lifting) sends a positive signal to both the local and international business communities," Edgar Chua, Shell country chairman and president, said.
"With the lifting of the EO 839, market competition can now prevail, which is the essence of the Oil Deregulation Law. We look forward to a continuing stable policy environment in which to conduct business successfully," he added.
Shell said that it will continue to work closely with the Department of Energy to ensure a safe and secure supply of petroleum products at competitive prices.
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