Caltex and Shell protest forex policy<\/p>\n
MANILA (AFP): Caltex Petroleum Corp. and Royal Dutch Shell
\nPetroleum Corp. subsidiaries in the Philippines yesterday
\nprotested the abolition of a special dollar allocation for oil
\nimports, saying this will seriously affect operating costs and
\nplanned investments.<\/p>\n
Caltex (Philippines) Inc. said it would have to double to
\nUS$80 million its monthly payment for crude oil, while Pilipinas
\nShell Petroleum Corp. projected an \"additional cost burden of 18
\nto 24 centavos per liter,\" for every 30-day reduction in the
\n\"foreign exchange cover.\"<\/p>\n
Earlier this week, President Fidel Ramos ordered a phaseout of
\na special dollar allocation for imports of oil products as an
\nadded measure to slow down the appreciation of the peso against
\nthe dollar.<\/p>\n
The measure means local oil refiners will have to buy dollars
\nin the open market for imports of crude. The government hopes
\nthis will increase the demand for the currency and stem the rapid
\nappreciation of the peso.<\/p>\n
To cushion the effect of the phaseout, the two firms urged the
\ngovernment to grant a year-old request for increases in profit
\nmargins. Shell has requested a 65-centavo per liter increase in
\npump prices, while Caltex petitioned for a 67-centavo increase.<\/p>\n
Both companies were granted a 33-centavo increase by
\ngovernment regulators in August.<\/p>\n
\"Last year, we made less than one percent on our return on
\nrate base formula and that is nowhere near the kind of level that
\nit takes to generate investment,\" Caltex Philippines president
\nWilliam Tiffany told AFP.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/caltex-and-shell-protest-forex-policy-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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