Seaoil, Eastern Petroleum pump prices to rise by a peso

By six o’clock of Wednesday morning, pump prices of Seaoil Philippines Corp. and Eastern Petroleum Corp. will climb by one peso per liter. This was announced by Fernando Martinez, who is both chairman of Eastern Petroleum and the Independent Philippine Petroleum Companies Association (IPPCA), a group of smaller fuel firms. At the same time, he refused to categorically say that the price hike would be the last for the month. “It’s too early to tell because [the price hike] is for December 2," Martinez said. In the meantime, another oil official said that originally, oil rates should be increased by P1.50 – instead of one peso imposed on Tuesday – “to reflect the costs that need to be recovered after prices were frozen" by Executive Order 839. But due to low prices – based on the Mean of Platts Singapore (MOPS) – “only a one peso increase will be reflected this week," the official added. For nearly a month, oil prices were kept at October 15 levels after petroleum firms continued to ratchet up rates despite the devastation wreaked by two weather disturbances. Fuel companies claimed that pump prices have to be raised by P4.50 to P5.00 per liter to bring costs on a par with international rates. Prices have been increased by P3.50 so far, raising the possibility of more adjustments. Roughly 90 percent of finished oil products sold locally are imported and thus follow price movements abroad. Asian fuel prices have slightly softened, with gasoline rates at MOPS – the benchmark of oil importers – reaching an average of $81.45 per barrel for the November 23 to November 27 period. This was lower than the $82.83 per barrel reflected during November 16 to November 20. Similarly, the diesel average at MOPS dropped to $83.678 per barrel for November 23 to November 27 compared to $84.822 per barrel from November 16 to November 20. Anytime this month, a group of liquefied petroleum distributors will also hike costs by P3.50 per kilogram. The expected price increase is seen to add P40 more to the retail costs of a standard 11-kilogram cylinder, including value added tax, Arnel Ty, president of the LPG Marketers Association, earlier said. As a result, a standard LPG tank is expected to cost P620, he added. LPG international contract prices have reached $720 per metric ton, higher than October’s $650 per MT. - RJAB Jr., GMANews.TV