However, the prices of gasoline and kerosene products were raised by P0.50 per liter, and liquefied petroleum gas (LPG), also by P0.50 per kilogram.

The firms that made formal oil price increase announcements since last Saturday were Petron Corporation, Pilipinas Shell Petroleum Corporation, Chevron Philippines, Inc., and the smaller players PTT, Seaoil, and Flying V.

"We will raise the prices of our gasoline and kerosene products by P0.50 per liter (inclusive of value- added tax) and LPG by P0.50 per kg (VAT exclusive). As part of our efforts to help the transport sector, there will be no price increase in diesel," Petron said in its advisory to media.

Despite some slight softening in word oil prices as compared to their registered peaks between the last week of April and first week of May, the oil companies noted that the price adjustments are warranted because they still have remaining "under recoveries."

The recorded peak for Dubai crude, the benchmark for local refiners, was $ 68.35 per barrel last May 3; but this has been softened to a range $ 62 to $ 65 per barrel in the past few days.

The price of gasoline, as referenced on the Mean of Platts Singapore (MOPS), hit $ 90.65 per barrel as its highest also last May 3; but now easing a bit to $ 85-$ 87 per barrel range; while diesel’s MOPS-based price peaked at $ 92.43 per barrel last April 24, and was seen registering very gradual softening.

In the case of LPG, international contract prices have jacked up this May to $ 470 per metric ton as against $ 428 per MT last month; thus, domestic prices have been going up by R0.50 per kg in the last two weeks.

Given recurring price volatilities, the government set out a policy via Executive Order 527 that shall bring down import duties for both crude and finished products based on certain price triggers as drawn up in the guidelines sorted out by the Department of Energy.

It was laid down that if crude prices were hovering at $ 66 per barrel and finished products are hitting $ 88 per barrel over the span of two weeks, import duties shall be pared down to 2.0-percent, and will further be cut to 1.0-percent if the average price of crude and finished products are $ 75 per barrel to $ 88 per barrel, also in a two-week stretch.

Zero import tariff, on the other hand, shall be imposed if prices were averaging at $ 85 to $ 88 per barrel for crude and finished products.

With this policy, the price cuts at the pump are expected at over P0.75 per liter; but the energy department wants this directed more to the transport sector, when feasible.