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.