Recto urges oil firms to adopt monthly adjustment in oil prices

MANILA, Philippines - Socioeconomic Planning Secretary Ralph Recto is urging oil companies to consider dropping its weekly increases in oil prices and adopt a monthly oil price review. In a briefing on Thursday, Recto said the monthly pricing scheme is seen to create less volatility in other consumer items affected by oil prices. He noted that since the start of the year, fuel prices had doubled. In January, oil per barrel is at $32 dollars in the world market and since then has hovered above $60 dollars as investors hoped that the global economy was on its way to recovery. "This will affect local oil prices and inflation. It will also become harder for the public transport to decrease or increase their prices and commuters will not benefit. We must find a way to smoothen the volatility in oil prices," Recto said. He said a 30 days to 60 days of price adjustment scheme would give time to the transport industry to also ask for fare increases as appropriate. Oil companies had earlier rejected a monthly adjustment, since it could mean bigger increases in fuel prices. But Recto said volatility poses a bigger concern for consumers. The government executive has expressed his support for the review the Oil Deregulation Law to give the Energy department more teeth in punishing oil firms that may have been committing unfair pricing practices. Earlier he said oil prices in the Philippines were “expensive by as much as P8". GMANews.TV