By MYRNA M. VELASCO
As international pump prices already breached a level of $47.50 per barrel for gasoline, oil industry players have already been batting for an adjustment in domestic pump prices.
Data has shown that from an average of about $45.20 per barrel in June, unleaded gasoline now trades at about $47.50 per barrel, or more than US $2 per barrel higher.
On the other hand, diesel is now trading by almost $6.00 per barrel higher, from an average of about $42.80 per barrel last month to $49.00 per barrel.
The cost of benchmark Dubai crude, on the other hand, has also gone by over $2.00 per barrel to $35.16 per barrel, as opposed to the June average of $33.43.
In this vein, the Independent Philippine Petroleum Companies Association (IPPCA) has debunked an earlier forecast laid down by industrialist and Consumer and Oil Price Watch (COPW) chairman Raul T. Concepcion that prices would stay at current levels in the next two months.
The group stressed that based on their estimates, the oil companies have under recoveries of
R0.783 per liter for unleaded and R3.811 per liter for diesel as of July 27.
Thus, IPPCA noted that statements made by COPW assuring consumers of a "no adjustment scenario", are clearly misleading.
"No price movement in the months of July and August is definitely an unlikely scenario. There is no doubt that the COPW has good intentions in its role as public informer. However, good intentions coupled with short term reference data can result in a mistaken understanding of where the market is headed," said IPPCA executive director Hector Fajardo.
The group likewise pointed out that by setting false expectations, the COPW, puts the entire oil industry in a bad light and may cause unrest in consumers who expect no price movements during a time where upward price movements are sure to take place.
"Local pump prices have not kept in step with price movements in the regional spot market. This is due to continued social pressures in the local environment," the oil players whined.
Meanwhile, it was clarified that the impending round of increases in the price is in no way connected to the proposal to increase the import duty of petroleum products to 5 percent; of which an Executive Order has already been issued by Malacañang.
It was noted that the continued upward movement in international prices can also be attributed to the political, peace and order and security tensions in the Middle East, including sabotage to Iraq’s oil infrastructure.
The scenario is also compounded by lower inventories in the United States, in view of the summer driving season.
