Oil firms asked to explain lower-than-expected rollback

By Alvin Elchico, ABS-CBN News

Posted at May 15 2012 05:55 PM | Updated as of May 16 2012 01:55 AM

P1 rollback for LPG effective Wednesday

MANILA, Philippines - The Department of Energy (DOE) is asking oil companies to explain why their rollback for regular gasoline prices fell short of the government's computations by more than P0.20 per liter.

Oil firms have cut gasoline prices by just P1.70/liter but the DOE's figures say it should be more than P1.90/liter

DOE director Zenaida Monsada said they will wait for the oil companies' explanation before discussing any sanctions.

Monsada also said it is possible that oil firms will cite the increase in ethanol as justification but the DOE will have to check its prices on the market.

Regular gasoline usually do not have ethanol but other grades have a mixture of 10 percent.

Only unleaded and premium gasoline are mandated to have a 10 percent ethanol blend.

Meanwhile, LPG Marketers Association Rep. Arnel Ty announced a P1/kilo rollback in LPG prices effective tomorrow.

Ty said they have already anticipated the downward movement for June. As of now, LPG contract prices are already down by $90/metric ton which is equivalent to around P4/kilo or P44/tank.

LPG prices have been going down since March, totalling to a reduction of more than P20/kilo.

The reduction in fuel prices, especially LPG and gasoline, have dashed hopes for the taxi groups who have filed a fare hike petition.

The Land Transportation Franchising and Regulatory Board (LTFRB) earlier said it will set aside all petitions for a fare hike from bus and taxi groups due to the decline in fuel prices.