Updated
July 9, 2018, 4:02 PM By
Myrna Velasco
It’s another week of
pinch on Filipino consumers’ pockets as pump prices are on upswing again this
week, with the cost of gasoline rising by P0.40 per liter; diesel by P.35 per
liter; and kerosene products by P0.70 per liter.
As of press time, the
first industry players that already sent notices on price hikes had been
Pilipinas Shell Petroleum Corporation and Flying V effective 6:00am on Tuesday
(July 10); the usual course of price adjustments at the country’s petroleum
pumps. The rest of the industry players are anticipated to follow competitors’
lead.
Given this fresh round
of price hikes, Laban Konsyumer Inc. President Victorio Mario A. Dimagiba is
challenging the Department of Energy (DOE) and state-run Philippine National
Oil Company-Exploration Corporation Inc. to make good and prove to the public
that they can really import oil from Russia at a cheaper cost of P35 to P36 per
liter, chiefly for socially sensitive diesel products.
The government has
already broadly publicized its plan to negotiate with the Russian government
for “cheaper oil” – and once its shipment arrives in the country, that oil will
be offered to public utility vehicles.
“The program to import
Russian diesel at announced P35 per liter for PUVs should be realized – and not
just gimmicks,” Dimagiba stressed.
It is worth seeing
though how the Philippine government could purchase cheaper diesel from Russia,
when that country is selling diesel at its pumps at 39.50 to 44.02 Russian
rouble (in the range of P33.48 to P37.31 equivalent in the local currency — but
that’s without factoring in logistics costs and excise taxes yet).
Dimagiba added “we have
to remember that our countrymen expected a better situation under this
administration and they are still hopeful. We cannot just let it that there
will come a time when this leadership will be losing its credibility on what it
promised to the Filipinos.”
According to
international market watchers, global prices had been on a rally several
trading days last week; however, they also softened on last Friday’s trading.
Dubai crude, which is
the regarded benchmark for Asian markets, closed at US$74.53 per barrel last
week; while Brent crude hovered at US$77.11 per barrel.
Meanwhile, the West
Texas Intermediate (WTI) crude reference for North American market was at a
leaner US$73.80 per barrel last week.
As noted by analysts,
prospects of world oil prices reaching anew the tense US$80 per barrel may not
recur yet because of the recent decision of the Organization of the Petroleum
Exporting Countries (OPEC) and its Russia-led alliance to boost production.
For markets, what they
have been closely monitoring is the impact of the brewing trade war between the
United States and China; especially with recent developments wherein Russia has
been stirred up to join the fray.
In the Philippine
market, consumers’ angst has been flaring up anew following the successive
weeks of price hikes – not a very enticing follow-up news after last week’s
report of incessantly increasing commodity costs.
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