Fuel prices in PHL could’ve gone lower, local think tank

Fuel prices could have gone much lower despite the recent rollbacks over the past weeks, the local think-tank Ibon Foundation said on Monday.

"[While] there is no reason to expect that changes in the price of Dubai crude will be exactly reflected by the same magnitude in pump prices, the discrepancy between the 75% price drop in Dubai crude, the 53% drop in the price of diesel, and the just 29% drop in the price of gasoline may be cause for concern," Ibon said in a statement.

Ibon said the prices of diesel and gasoline were much lower the last time Dubai crude was priced near the current Php1,099 per barrel.

When Dubai crude was priced at US$22 or some P1,106 per barrel in December 2000, the price of diesel was just P14.24 per liter while that of gasoline, P17.08.

"Even if value added tax that was not applied to oil products in 2000 is factored in, diesel and gasoline are both still more expensive by P3.70 and Php18.10, respectively," Ibon said.

Data from the DOE shows that current prices of diesel range from P16.85 to P20.97 per liter and gasoline from P31.55 to P39.20 per liter. Meanwhile, an 11-kilogram cylinder of LPG (liquefied petroleum gas) ranges from P420.00 to P680.00.

"Lower fuel prices would benefit not just motorists but also millions of consumers nationwide, and fuel price changes affect the price of food and other basic commodities," Ibon said.

"But public suspicion that the oil cartel abuses its monopoly on the industry to overprice petroleum products has not settled," it added.

"In the past, this has most commonly been understood as pump prices increasing beyond what is justified when global  oil prices rise, and, conversely, falling by less than is warranted when global oil prices fall," the group said.

Sought for comment, oil firms said that the DOE had been monitoring pump price adjustments in the country to reflect the latest global developments.

"Weekly fuel price movements are closely monitored by DOE to ensure that we reflect the right adjustments at our stations," Seaoil Philippines brand manager Rey Jimenez told GMA News Online in a text message.

"Per DOE procedure, it should clarify that changes in prices has been reflected in weekly price changes," Ina Soriano, communication officer for Pilipinas Shell Petroleum Corp., said in a separate text message.

Petron Corp. declined to comment.

Other oil firms were not readily available for comment. Calls and texts to the DOE were likewise left unanswered. -Jon Viktor Cabuenas/NB, GMA News