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PETROLEUM product and liquefied petroleum gas (LPG)
prices are expected to rise some more next month with
the continuous surge in world and regional oil prices.
“We see
no more increases for May, but June is another story,”
said Petron Corp. public affairs manager Virginia A.
Ruivivar.
The
Petron official added that Petron continues to monitor
the oil price movements abroad.
“We need
to see where the international oil prices are going. But
we believe there is still pressure to increase the price
of gasoline and LPG,” Ruivivar said. She added that
Petron had already recouped its under-recovery for the
month of April.
Ruivivar
said market estimates showed that the international
contract price of LPG or cooking gas for the month of
June has soared by $25 per metric ton.
The
Department of Energy, on the other hand, said amid the
average increase of $10 per barrel in the prices of
diesel in the international market and $20 in the prices
of gasoline this year, net increase in the local pump
prices since the start of the year is only P1.20 per
liter for diesel and P2.20 per liter for gasoline.
Since
January 7, 2007, oil companies have only increased six
times for diesel and seven times for gasoline (including
the May 26 increase), and only decreased four times for
diesel and gasoline, respectively. Net increase to date
is only P1.20 per liter for diesel while P2.20 per liter
for gasoline.
Local
pump prices are also way below the peak prices seen in
August of 2006. From a high of P37.75 per liter of
diesel in August, the new average price of P34.45 per
liter is still P3.30 per liter cheaper, while gasoline
is P4.80 per liter lower from the peak average price of
P44.25 in August.
Energy
undersecretary and officer-in-charge Melinda L. Ocampo
said the positive effect of the peso appreciation has
significantly contributed to softening the impact of
high international oil prices.
“Oil
price increases would have been much higher without the
peso appreciation. We are now in a situation where
international oil prices are again reaching historical
high levels of more than $80 per barrel. If the peso
were not as strong as it is today, the impact would have
been much higher,” Ocampo said.
Dubai average price for the month of May is now about $64.54
per barrel compared with $63.97 per barrel in April.
Average price of Mean of Platts Singapore (MOPS)-based
unleaded gasoline has increased by about $5.39 from
$83.64 per barrel in April to $89.03 per barrel in May,
while average price of MOPS-based diesel for May is now
at $83.42 per barrel compared with $82.11 per barrel in
April.
Meanwhile, the peso-to-dollar exchange has appreciated
from the average of P47.82 in April to P46.95 in May.
“While
we are benefiting from the impact of [the] stronger
peso, we will continue to work with all sectors to
ensure that local pump prices reflect fairly
international oil price and foreign-exchange rate
changes. I also appeal to oil companies to effect price
increases gradually and only when absolutely necessary,”
Ocampo said. |
