RP oil refiners raise pump prices
RP oil refiners raise pump prices
MANILA (Reuters): Philippine oil refiners on Tuesday raised pump prices of politically-sensitive petroleum products by 45 to 47 centavos (around 1.0 U.S. cents) a liter to cope with the rising cost of crude and the weak peso.
Officials of the country's three oil refiners also warned of more price hikes in coming months as crude prices were unlikely to come down soon.
The latest increase, which excluded cooking gas, was the seventh this year.
Pilipinas Shell Petroleum Corp said its latest increase of 47 centavos per liter on all petroleum products, except cooking gas, ranged from 2.7 percent to 3.7 percent.
The member of Royal/Dutch Shell group has increased its pump prices by a total of 3.26 pesos per liter since the start of the year.
"In our view, we see there will be continuing adjustments because crude is now at $30 per barrel from $27 in August," Pilipinas Shell spokesman Reynaldo Gamboa said, referring to the benchmark Dubai crude used by Philippine refiners.
"The peso is now at about 46 (to the dollar) when last August it was only at 44.80," he said in an interview on DZMM radio.
The peso opened at 45.55 to the dollar on Tuesday from its previous close of 45.51 and was quoted at 45.55-45.58 by 0750 GMT.
Industry executives said local refiners should hike their pump prices by 50 centavos per liter for every peso depreciation and by another 25 centavos for every dollar increase in crude costs.
Petron Corp, the country's largest oil refiner, said its latest increase of 45 centavos per liter was just a third of its total under-recovery of 1.40 pesos per liter.
"Petron has heeded appeals from various sectors to wait for the results of the September 10 OPEC meeting in Vienna before implementing the 45 centavo across-the-board increase," it said.
"However, OPEC's announcement of adding 800,000 barrels per day of crude in the market did not result in the desired softening of prices. On the contrary, the price of Dubai crude oil increased by $1.095 to $30.82 on September 11," corporate communications manager Antonio Pelayo said in a statement.
Dubai crude prices are averaging $30.34 per barrel this month, from $27.00 in August, Petron said.
The Organization of the Petroleum Exporting Countries (OPEC) pledged on Sunday to increase output by 800,000 barrels daily to 26.2 million barrels a day.
"From what we see, the announcement... will only be effective October 1 and will be felt in the market only in November," Shell's Gamboa said.
"By that time, countries with winter will be buying crude for their winter requirements so this announcement by the OPEC will not have much effect on prices until winter ends by January or February," he added.
Local oil refiners import almost all their crude needs.
Caltex Philippines Inc President Enrico Cavestany said in a statement: "Caltex regrets that it has little alternative but to implement the price increase and remains aware and sympathetic to needs of the public."
Oil price hikes in recent months have been met with violent rallies and crippling transport strikes.
Caltex, which said it has incurred losses of 1.5 billion pesos in the first eight months of the year, raised its prices by 45 centavos per liter on Tuesday.
Caltex is a joint venture between Chevron Corp and Texaco Inc.