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THE
so-called trigger price on crude and diesel have been
exceeded, making likely by February the 2-percentage-
point drop in tariff for these products, Finance
Secretary Margarito Teves said on Monday.
According to him, the average price of crude oil per
barrel averaged $92.75 and diesel averaged another
$114.27 per barrel from January 2 to January 10. “The
trigger prices have been exceeded. Similar to the
initial trigger prices, the new prices will provide
basis for the lowering of the oil tariff to 1 percent
from 3 percent if the latest average prices of crude and
diesel were to hold for the first 15 days of the month,”
he said.
He said
the pump price of oil would be reduced across-the-board
by P0.23 per liter for every 1-percentage-point
oil-tariff reduction and by as much as P0.50 per liter
if the reduction were focused on diesel only.
He said
the “averages” to be used for the reduction would be
determined in the first 15 days of every month with the
appropriate oil tariff being applied to the whole of the
succeeding month.
Under
government guidelines, a 1-percent tariff will be
imposed on crude and petroleum products should the
average price of both Dubai crude and Mean of Platts
Singapore (MOPS)-based diesel over a two-week period
reach $75 per barrel and $88 per barrel, respectively.
A
2-percent tariff will be imposed on petroleum and crude
products should the average price of both
Dubai crude and MOPS-based diesel reach $66 per barrel and $88 per
barrel.
No
tariff is levied on crude and petroleum products should
the average price for both Dubai crude and MOPS-based
diesel reach $85 per barrel and $88 per barrel. |
