As the United States-China trade war escalates and global economies wobble, oil import-dependent country like the Philippines would have to agonize more over volatile pricing of petroleum commodities and such will be increasing diesel prices at domestic pumps by P0.75 per liter while gasoline and kerosene prices will be up by P0.50 per liter this week.
Oil firms Chevron Philippines and PetroGazz announced the price hikes early, although the actual adjustments will be in their usual Tuesday routine, or on Aug. 20, at 12:01 a.m. and 6 a.m., respectively.
The other oil companies are anticipated to follow their lead, which has always been their practice, hinging such on the dictates of market forces.
There was new round of rally in global oil prices last week as “fears of recession” had been dampened, according to industry experts, and that was the prognosis despite overall assumptions and data showing slowdown in global economic growths.
In the Philippines, as the government loses its legal bid to enforce more transparent pricing for oil products, the industry players also appeared to be fiddling around more on their pricing announcements depending on their competitive whims.
But Energy Secretary Alfonso G. Cusi is not easy to give up. Despite having been legally bruised by the issuance of preliminary injunction against the government-underpinned fuel cost unbundling policy, he said that he will resurrect the State’s oil importation plan so the consumers could be given an option in the liberalized oil sector.
Cusi admitted he is “not happy” with the outcome of the legal setbacks encountered by the Department of Energy-sanctioned circular on fuel costs unbundling, but he said the department will continue to judiciously handle the legal aspect of that policy in coordination with the Office of the Solicitor General.
“We have to consult with OSG to ensure that we will not be cited in contempt. That court decision is not a problem with us, that’s the right of the companies – they’re exercising it. We respect the courts, but that doesn’t mean that we will stop from finding ways how we can keep the people informed,” he stressed. (Myrna Velasco)
