Recto: Oil firms unfairly raising petroleum prices

(Updated 8:38 p.m.) Senator Ralph Recto on Tuesday said that oil companies are unfairly and unnecessarily raising prices of petroleum product amid the political turmoil in North Africa and the Middle East, the world’s primary source of crude oil. Recto, who chairs the Senate ways and means committee, explained that an oil company should have already ordered its fuel stock for March and should be "immune" from the global price "upheavals" for at least a month. "We beg oil companies to hold off their greed even if it would be a lame attempt to show to the public that they are really sensitive to the people's already dire situation," he said. Oil companies are probably engaging in "speculative oil trading" by imposing a P2 per liter increase in gasoline and an additional P1 per liter for diesel because of the tumultuous situation in North Africa and the Middle East . Recto, however, said that oil firms should adhere to their 30-day inventory and implement price hikes only when their 30-day supply has been depleted. He rejected a statement supposedly issued by an official of the Department of Energy saying that oil companies should immediately reflect global movement in their pricing to avoid local price shocks. "The only shock that should be avoided is the fact that some energy officials, despite the change in government, still appear to be speaking in behalf of the oil behemoths," he said. Oil companies increased on Tuesday their pump prices by as much as P2 per liter for gasoline and P1 for diesel. Government must act now Noting the rise in prices of basic commodities in light of the strife in North Africa and the Middle East. Senator Francis Pangilinan on Tuesday also called on government to ensure the availability of food supply and to protect the people from profiteers. Pangilinan said he is amenable to giving President Aquino emergency powers if the Middle East situation gets worse. “We need to have a President empowered to protect our interest in times of international crisis. We also trust that President Aquino will not allow for such emergency powers to be abused," the senator said. Aquino on Monday thumbed down the thought of asking for and wielding emergency powers. — With Paterno Esmaquel II/VS, GMA News