Shell exec: Price hike not related to pipeline closure

One of two firms affected by the shutdown of an oil pipeline over a gas leak in Makati City raised prices of its products Monday, but insisted this was not due to the pipeline closure. Shell Philippines spokesman Roberto Kanapi said in a radio interview the price hike was due to price adjustments in the international market. "Hiwalay po ito. Ito ang normal adjustment because of product pricing sa international market. It is very much different sa additional charges as a result of this pipeline closure (Our adjustment is due to product pricing in the international market. It had nothing to do with the additional charges caused as a result of the pipeline closure)," Kanapi said in an interview on dwIZ radio. In the same radio interview, Kanapi also reiterated that Shell’s supply of fuel products will normalize between the middle and end of this week. "(Ang estimate namin) by midweek or end of this week ma-normalize ang supply namin (Our estimate is by midweek or the end of this week we can normalize our supply)," he said in an interview on Radyo 5. Price hike Radio dwIZ reported earlier that Chevron and Shell, both affected by the closure of the pipeline of First Philippines Industrial Corp., had increased prices of their fuel products early Monday. According to Kanapi, Shell increased prices of regular gasoline by 50 centavos per liter, and 25 centavos per liter on the "main grades" of their fuel products. In a separate interview aired on Radyo 5, Kanapi said they cannot pass on the added costs of transporting fuel from their Batangas refinery to their Pandacan (Manila) depot to consumers. "We have been saying that. Any costs because of additional logistics di pwede ipasa sa market. Players who are not affected, why should they increase their prices? So we cannot adjust our prices," he said. Kanapi also said the price hike was minimal, due to the peso’s strong exchange rate against the US dollar. "Ang kabutihan is because of the appreciation of peso maliit ang adjustment, gumanda ang exchange rate between peso and dollar (The good thing is that the peso’s appreciation improved its exchange rate against the US dollar)," he said. On the other hand, he hinted more price adjustments may be on the way due to increased demand for fuel during the cold months. "(Pricing) continues to remain very volatile. The cold months mean use of more heating fuel in western countries," he said. Supply to normalize this week Kanapi said they expect fuel supply to normalize by middle to the end of this week, as Shell positioned mother ships at the mouth of the Pasig River and sought an exemption from the truck ban to bring products to its Pandacan depot. He said the FPIC pipeline affected 95 percent of their products. In the meantime, he said they are focusing on normalizing first their diesel and unleaded premium fuel products. — RSJ, GMANews.TV