The investigation on the oil companies' pricing strategies zeroed in on the country’s two oil refiners – Petron Corporation and Pilipinas Shell Petroleum Corporation – since their procurement cost references are both based on crude and finished petroleum products.

Consumer and Oil Price Watch (COPW) chairman Raul T. Concepcion, in a press statement, indicated that the two companies must clarify the manner in which they have been pricing their products in view of their crude import volume and their importation of finished products.

Concepcion said he is taking reference on the questions posed by lawmakers to the effect "that refiners Shell and Petron should reflect monthly instead of weekly pricing based on Dubai since they keep stock inventories of 30 days."

The COPW chair particularly cited the statement made by Shell vice president Bobby Kanapi, wherein their refining capacity accounts for 45% of their total sales and we stated that they should disclose, in the interest of transparency, the quantity that must be based on Dubai pricing and the other 55% that must be based on MOPS pricing.

The oil refiners previously noted though that hinging price movements on the Mean of Platts Singapore (MOPS) will be a fair reference to effect parity in the competitive nature of the business.

The industry players have been reiterating that market forces generally influence how prices are set at the pumps, notwithstanding other relevant factors such as product costs or the movement in foreign exchange rates. (MMV)