BY ASHZEL HACHERO

ENERGY Secretary Angelo Reyes yesterday said no price rollback is expected from oil companies this week despite the softening of world crude prices as price per barrel dropped by $17.

"That’s very good news but a five-day drop does not establish a trend," Reyes said.

He could not also say if another round of increases in pump fuel prices is in the offing this weekend.

"Oil prices are set by the (world) market. Let’s see how the market will behave," Reyes said.

The energy chief likewise won’t speculate if a fresh oil price adjustment would be justified amid the $17-slide in world crude prices.

He, however, said local oil companies compute their losses or "under-recoveries" on a monthly basis, and that July’s dollar drop on Dubai crude and resulting price adjustments would be reflected only next month.

He said the price drop in the Dubai crude was due to three factors: the positive development in the ongoing talks between the United States and the European Union and Iran regarding the latter’s alleged nuclear weapons development, the limit in oil consumption in Western countries, and the inclement weather condition in Mexico, one of the major oil-producing countries.

Last Saturday, oil firms effected a P3 per liter hike on diesel, the 20th increase and the heftiest one this year. Malacañang immediately went to the rescue of consumers and appealed for a P1.50 rollback, which was granted earlier this week.

Reyes attributed the rollback to President Arroyo’s "persuasive powers."

"Moral suasion is up to the level of the President. Whether or not the President would exercise moral suasion in case prices go up again is entirely up to her," he said.