MANILA (UPDATE 2) — Diesel prices will go up while gasoline prices will remain steady in the second week of October.

Oil companies announced the following price movements effective October 8:

SHELL PILIPINAS, SEAOIL, CALTEX (effective 6 a.m.)

Gasoline - No change

Kerosene - P0.70/liter increase

Diesel - P1.20/liter increase

CLEANFUEL (effective 4:01 p.m.)

Gasoline - No change

Diesel - P1.20/liter increase

PETROGAZZ (effective 6 a.m.)

Gasoline - No change

Diesel - P1.20/liter increase

According to the Department of Energy, the upward adjustment in diesel on Tuesday does not yet include the increase that corresponds to the additional 1 percent in coco methyl ester component of the now mandated 3 percent biodiesel in the pumps.

While the DOE estimates the increase to be around P0.30-P0.40/liter, several oil firms said the increase should hover between P0.60-P0.70/liter or double the government estimate.

LOWER MERALCO RATES IN OCTOBER?

Meanwhile, Meralco said it still is not sure whether or not overall electricity rates are going down this month

While Meralco Spokesman Joe Zaldarriaga is certain that the generation rate, or the price of electricity from various suppliers and the spot market, is going down, the utility is not yet sure if the transmission charge of the National Grid Corp of the Philippines is going up. The NGCP's ancillary charge which has been going up in recent months after the resumption of the reserve market.  

Zaldarriaga said there will be no longer any increase due to the staggered generation charge of June as the tranches have all been implemented.

That is equivalent to P0.77/kWh that will be gone from the October bill but a new generation charge add-on will be implemented.

This involves the higher natural gas prices of power plants which provide a large share of Meralco's power supply. Meralco estimates the new charge to be around P0.30/kWh which will impact consumers in the October billing.

NGCP has yet to respond to queries regarding last month's ancillary charges to electric cooperatives and distribution utilities.