Eastern Petroleum, Flying V to raise pump prices by P1.50

Eastern Petroleum and Flying V will raise pump prices by P1.50 per liter starting Tuesday, the second time both increased rates after the government lifted a cap on fuel charges last week. Higher costs for diesel, gasoline, and kerosene will take effect starting 12:01 a.m. Tuesday. The increase is “long overdue by over a month," said Eastern Petroleum president Fernando Martinez, who is also chairman of Independent Philippine Petroleum Companies Association. Last Wednesday, Eastern Petroleum and Flying V raised diesel and gasoline prices by P2 and P1.50 per liter. On the same day, big players Pilipinas Shell and Petron also increased prices of their gasoline and kerosene products by P1.50 per liter, diesel by P2 per liter, and liquefied petroleum gas (LPG) by P2 per kilogram. Both Eastern Petroleum and Flying V said that the increases will allow them to recover losses incurred during the imposition of EO 839, which set fuel prices at October 15 levels. The latest round of oil price increases is the second such announced by the two independent oil firms ever since President Gloria Macapagal Arroyo lifted Executive Order 839. The government was prompted to issue the edict after oil companies continued to increase prices despite catastrophes caused by cyclones "Ondoy" and "Pepeng" in Luzon. Although the order was revoked last October 16, Arroyo sought petroleum companies’ assurance that they will continue to provide fuel discounts allowing transport groups to keep fares down for six months. She also requested that price hikes be staggered. [See: Arroyo revokes fuel price freeze] - GMANews.TV