DoE to ask oil firms to explain delayed cuts

09/08/2008

The Department of Energy (DoE) is meeting major oil companies today to make them explain their reluctance to implement a P1 per liter rollback in the prices of gasoline last weekend considering the downtrend in the international market.

Energy Secretary Angelo Reyes said he has summoned the oil firms and asked them to explain if they are properly reflecting the drop in the world market in local pump prices.

“We just want to protect the customers [and ensure] that the companies are fairly giving their rollbacks,” Reyes told reporters.

Oil giants Petron Corp., Pilipinas Shell Petroleum Corp. and Chevron Corp. (formerly Caltex) have implemented their rollbacks Saturday of P1 per liter for gasoline, diesel and kerosene.

While independent oil players namely Seaoil Philippines Inc., Unioil Petroleum Philippines Inc., Flying V and Eastern Petroleum Corp. implemented the price cut as early as Tuesday last week.

Total Philippines Inc. has not made any advice on their price adjustment for the week.

President Arroyo has also asked major oil companies to explain why they did not follow immediately the implementation of the rollback when small oil players have announced the price reduction in their petroleum products early last week.

Oil players during their meeting last month with the DoE, noted that pump prices will not be adjusted immediately since the reduction of the price must also be staggered like their price increases.

With the P1 reduction, unleaded gasoline now stands at P53 to P55 per liter; kerosene at P56 to P59 per liter and diesel at P52 to P54 per liter.

As of Sept. 5, Dubai crude average was placed at $105.10 per barrel lower than the $112.04 per barrel average for the month of August.

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