Another oil price hike looms

by Alvin Elchico, ABS-CBN News

Posted at Aug 22 2012 05:39 PM | Updated as of Aug 23 2012 04:10 PM

MANILA, Philippines - Another price spike in fuel prices looms within the week after a hefty upward adjustment on diesel and gasoline earlier this week.

Based on last week's average prices of imported fuel, gasoline price rose by P1.10-P1.20/liter while diesel increased by P1.20-P1.30/liter.

The Department of Energy (DOE) said oil firms have not yet sent out any advisory on a new price increase.

Oil prices may continue to rise next week as imported fuel prices are also on an upward trend due to geopolitical tensions in the Middle East and the United States.

But transport group PISTON wants a price freeze on fuel products.

Around 50 members of the militant transport group did some "planking" in front of the headquarters of Pilipinas Shell in Makati City.

Bagong Alyansang Makabayan also protested along Quezon City Rotunda to express their dismay over the spiralling cost of fuel.

The groups are asking the government to remove the value added tax (VAT) on fuel and electricity to lessen the impact of higher petroleum and power prices.

But there's another looming problem for consumers as the international contract price of LPG is also increasing.

Industry sources said the increase is now $100/metric ton, which would translate to more than  P5/ kilo increase.

In the Philippines though, oil companies get their supply and price quotations on the first week of the month so consumers will not know the exact price adjustment until September 1.