THE Department of Energy (DOE) on Friday warned of a possible mixed movements in pump prices due to several factors such as the U.S. Federal Reserves’ interest rate cuts, geopolitical concerns, and tight oil supply.
DOE director for oil industry Rodela Romero said based on the four-day trading in the Mean of Platts Singapore, mixed movements will be implemented in the domestic pump prices by next week.
Romero said the gasoline prices may go up by P0.40 to P0.90 per liter, diesel may have no adjustment or increase by up to P0.40 per liter, while kerosene may also have no adjustment or increase by P0.20 per liter.
She said world oil prices reacting to news of the US Fed Reserve makes aggressive interest rate cut weeks before their presidential election. Tensions in the Middle East, specifically the attack on Hezbollah members across Lebanon also offered some price support due to potential supply disruption and decline in US crude inventories.
“For Asia, Japan refinery under maintenance and Malaysia removes their subsidies to gasoline with octane grade of 95,” Romero said.
On Sept. 17, 2024, the oil companies implemented a decrease of P1 per liter for gasoline, P1.30 per liter for diesel, and P1.65 per liter for kerosene.
Year-to-date, total adjustment of gasoline and diesel stands at a net increase of P4.85 per liter and P1.75 per liter, respectively, while kerosene has a total net decrease of P6.35 per liter.
Meanwhile, Senator Sherwin Gatchalian said he wants to institutionalize transparency in the movements of petroleum prices through a law to ensure that the welfare and interests of consumers are amply protected.
“To guarantee transparency and fair retail pricing, information related to any significant adjustments in oil prices should be made available to the public,” Gatchalian said.
A recent Supreme Court decision upheld the Court of Appeals’ rulings that affirmed the validity of a circular issued by the Department of Energy (DOE). The circular requires oil companies to unbundle or disclose the details of price adjustments, along with explanations and supporting documents.
“Open and honest communication between the government, oil companies, and the public is important to maintain trust and protect the interests of the people, especially in times of fluctuating market prices,” Gatchalian said.
Gatchalian filed Senate Bill 2081 which seeks to amend Republic Act 8479 otherwise known as the Downstream Oil Industry Deregulation Act by institutionalizing transparency in the industry.
The proposed measure aims to address a legislative gap by providing the DOE with explicit authority to require downstream oil industry participants engaged in the retail of petroleum products to submit information on the cost components of the pump prices when the average price of Dubai crude oil for 3 consecutive months is equal or greater than $80 per barrel.
The measure specifically mandates DOE to require disclosure of actual costs including international content such as import costs, freight costs, insurance, and foreign exchange costs; government impositions such as import duties, excise taxes, value added taxes; biofuel costs and other costs such as port charges, refining costs, storage cost, handling costs, marketing costs, transshipment costs, and the oil company’s profit.
