Malacañang is closely watching the oil price hikes imposed by oil firms fearing that it might fuel up inflation as well as add to the worsening effects of El Niño phenomenon.

Presidential spokesperson Ricardo Saludo expressed the Arroyo government’s “concern” about the imposition of price increases on petroleum products by 50 centavos per liter.

“Sinusubaybayan natin ng mabuti itong medyo pag-akyat ng presyo ng langis saka ng mga oil products. Syempre ayaw naman natin na madagdagan pa ang mga pabigat ng El Niño kung tataas presyo ng mga bilihin kaya sinusubaybayan natin ‘yan (We are closely watching the price increases on oil and other petroleum products. Of course, we don’t want anything more to add to the brunt of El Niño, if the price of commodities will increase, that is why we are monitoring it), ” he said.

He said they are counting on the Department of Energy (DoE) to closely watch the oil price increases with hopes that there is no irregularity in such hikes.

Saludo said there is no need for them to remind Energy Secretary Angelo Reyes, since it is the mandate of his department to ensure that there is stable oil supply and affordable oil prices.

“We believe that within that mandate they will know what sort of initiatives or moves they can try to undertake,” he said.

He said Malacañang is not yet considering imposing oil price cap, particularly in Mindanao, which is placed under state of emergency following the pressing power crisis.

Saludo said there is no specific directive from President Arroyo to address the oil price hike since it is part of the mandate of the DoE “to assess these things and we are simply expressing our concern.”

“This is really just to express our concern over the uptick, kasi dagdag yan sa pabigat sa tao, meron na nga tayong problema ng El Niño, talagang matindi. We see every day these fields, dry fields, dry river beds. We don’t want anything more to add to that and we just want to see whether there’s any action or any coordination that may be possible, may be warranted to try and avoid any further burdens on our people especially from higher prices,” he said.

Petron Corp., Seaoil Philippines Inc. and Chevron Philippines drastically raised the price of their petroleum products by 50 centavos per liter on Tuesday.

Phoenix Petroleum has yet to implement the same price hike, while Shell has not hinted if it will follow suit. This is sixth price hike since January this year.

Meanwhile, a group of lawyers wants oil companies to bare their product inventory and the mathematics behind their retail prices.

“The oil industry lacks transparency,” lawyer Vladimir Cabigao of the Social Justice Society (SJS) told the Manila Bulletin pointblank. Cabigao reiterated the call for oil companies to make their key figures public following the half-peso price hike on all fuel products that went “undetected” Tuesday.

So far, the “Big Three” composed of Pilipinas Shell, Petron Corp., Chevron Philippines as well as smaller players Total Philippines, Seaoil Philippines, Eastern Petroleum, Flying V and Phoenix Petroleum have imposed the P0.50 per liter increase. It was the fourth fuel hike in as many weeks.

“What should be done is to have these oil firms reveal when their inventories begin and end. This information should be published on newspapers so that we would know if they are selling us old or new product stocks,” Cabigao said, throwing a suggestion to authorities.

Another question for oil players that the lawyer would like answered: How do you arrive at your selling price?

“Right now we don’t know how these companies compute their pump prices. All they say is that they’re reflecting movements in the world market,” the lawyer said.

They are also asking Energy Secretary Angelo Reyes to do something about the matter despite the oil industry being deregulated.

“The government must empower itself. “Kung gusto nila, may paraan (There are ways if they really want to),” Cabigao said.

Fernando Martinez, chairman of the Independent Philippine Petroleum Companies Association (IPPCA), belittled Cabigao’s ramblings, saying that the latter “obviously doesn’t know what he’s talking about.”

“I’d subscribe to Bloomberg if I were him,” Martinez said of the lawyer.

According to the oil executive, the plea for transparency has since been put to rest by two independent studies conducted jointly by the University of Asia and the Pacific and data firm SGV. “That’s an old issue.”

The studies concluded that there was nothing unreasonable with the prices being imposed by oil firms in relation to movements in the world market, Martinez pointed out.

But what’s up with the “synchronized” price adjustments?

“In a deregulated environment, the market serves as the final arbiter of pump prices,” Martinez said, adding that the competition between oil firms has become much stiffer.

Last week, the Manila Regional Trial Court (RTC) denied a motion for reconsideration filed by SJS to overturn the court’s earlier ruling that junked a petition to stop the Big Three from imposing weekly price hikes.

Cabigao claimed that big and small oil firms are working together in controlling fuel prices.

Malacañang had counted on the oil companies to fulfill their commitments to Mrs. Arroyo when she lifted the oil price freeze on Nov. 13 last year on the condition that the oil firms will not make “drastic increases” on fuel prices. (With a report from Ellson Quismorio)