“[Energy] Secretary Cusi met with the oil companies after some of them have announced their price advisories,” DoE Oil Industry Management Bureau Director Rino E. Abad said in a Viber call.On Monday morning, Mr. Cusi said the price increase per liter for diesel should be less than P12 and less than P7 for gasoline.straight week on Tuesday. Some fuel retailers announced gasoline and diesel prices will increase by P7.10 and P13.15 per liter, respectively. The price of kerosene will go up by P10.
Energy Undersecretary Gerardo D. Erguiza, Jr. said during a Senate hearing that local gasoline and diesel prices are expected to soar to as much as P86.72 per liter and P81.10 per liter, respectively, if Dubai crude hits $140 per barrel. At the same hearing, oil companies thumbed down the DoE’s proposals to increase the minimum inventory requirement , unbundling of pump prices, and to give the government the power to regulate prices.
“We don’t really think the situation will persist for a long time, if that’s the case then better, but [one of our concerns is that] what if we consider buying now [when prices are high], then prices will drop dramatically?” she said, adding that Petron already has a 30-day inventory in place. Meanwhile, Independent Philippine Petroleum Companies Association President Fernando L. Martinez said setting higher MIR is not realistic given that not all fuel depot locations have enough physical tank storage capacity to support 30-day inventory. He noted this will also add to the cost of domestic fuel.