Independent oil player Flying V has put forward a proposal, on behalf of the other industry players, for a staggered pass on of costs that account for the difference in true costs that should have been reflected at the pumps.

This is the scenario that could help ease the situation, if and when the Palace finally decides to lift Executive Order 839.

Flying V chairman Ramon F. Villavicencio estimated that the cost adjustment may amount to P4.50 per liter. If this is passed on one-time, it will result in price shock to end-users. The proposal is to spread the recovery over three weeks or at P1.50 per week increment.

Villavicencio is hopeful that the EO will be lifted soon, with several high authorities in government already realizing the adversarial impact of the price freeze, not only in the handling of investment policies but also on the State coffers.

He clarified though that the estimated P4.50 per liter is not meant for them to recover losses; but just for the industry to bring pump prices to where they should be at this period.

The oil firm executive noted the huge gap in the product’s acquisition costs compared to what are being reflected at the pumps. He stressed this prompted Flying V “to stagger the expected impact to consumers once the EO is lifted.”