Gas, diesel prices expected to climb again this week
by Alena Mae S. Flores
OIL companies are expected to raise pump prices by 50 to 70 centavos a liter this week following the continuing increase in world crude prices, industry sources said over the weekend.
“Our computations show that [the increase] will be around 50 centavos to 70 centavos per liter,” one of the sources said.
Energy Undersecretary Jay Layug said oil prices would go up again this week but could not say by how much.
“It will still likely go up, but we don’t see another spike like the previous week,” Layug said.
Dubai crude went up to $116 a barrel on April 14 from $111 to $115 the previous week.
Imported unleaded gasoline fetched $129 a barrel from $124 to $128 a week ago. Diesel went up to $140 a barrel on Thursday from $130 to $137.
The oil firms have already raised prices by P1.50 a liter since April 12.
Diesel is now being sold at P46.45 to P49 a liter, and gasoline at P53.60 to P60.81.
Gasoline prices have increased by P7.85 a liter, and diesel by P9.60, since the start of the year.
Layug said the government was prepared to take over Shell’s compressed natural gas stations in Biñan, Laguna, and Tabangao in Batangas to ensure efficient fuel distribution to transport operators.
Shell agreed to put up the stations in 2008 using the output from the Malampaya gas field, but the Laguna station has been beset by technical problems.
“I don’t think the stations are income-generating for Shell. They are not earning from them,” Layug said.
He said the government could switch technologies and rely on imported liquefied natural gas to fuel public transport buses rather than use natural gas from Malampaya.
The government aims to bring the number of public transport buses running on compressed natural gas to 1,000 from only 61 now. Of the 61, only 35 actually run on compressed natural gas because the fuel is not readily available.
PNOC Exploration Corp. had earlier set aside P400 million over the next two years to build more natural gas stations. A new station in Batangas is expected to begin operations in October to serve the buses plying the Batangas-Edsa route.
The state-owned company also plans to build a gas station at the Mall of Asia in Pasay City to bring the fuel closer to Metro Manila bus operators.
On Friday, the government said it would begin stockpiling fuel to build up its emergency reserves as unrest continued in the oil-producing Middle East and North Africa
President Benigno Aquino III said the first shipment of about 50 million liters pf diesel for the state-run Philippine National Oil Co. was due to arrive in May.
Reaction:
I can really relate to this article. Me and my family are currently experiencing the burden of the rise in oil prices. Because of this, whenever I decide to go home in our province which is very far from Davao, my parents contact some of their friends or some of our relatives in the city to know if they will be going to the province using their private vehicles. If they will go, I should go with them so that I can avoid from paying the expensive fare in riding the bus. But if this cannot happen because of some circumstances, I should ride the bus with my student identification car to avail the discounted fare. In addition, this crisis makes my family visit me less often than before. Somehow, this situation can be very depressing in my part because I am not really used to stay in the city without them. Another bad thing it brings me is that my allowance is decreasing in amount. Even though I experience all of these, I am still considerate in understanding that our economy nowadays is in the verge of crisis that affects many people including me and my family.
Surely, I witness very well the sufferings of the people especially those poor and jobless ones in their financial problems caused by this crisis. On my opinion, political convulsions in the Middle East and North Africa are disrupting economies in the Middle East and have contributed to an astounding increase in the price of crude oil. As we all know, Middle East is well known for its fuel in the world market. Because of its economic fallout, it greatly affects the supply of fuel leading for the oil companies to rise their oil prices.
Based on the article informing us about the project of the government to resolve this problem, I think that what they are planning is a wise solution. But somehow, I could not stop myself to wonder if they really can pursue this project successfully. Even if there is a little doubt in my mind, I hope they can. If they bring this project effectively, it will give a huge relief to the Filipinos. This can also gain the people’s trust to the government. My little advice to the government and to the President: "Do your best on this to serve the people."
