Oil, LPG importers quizzed on price adjustments

When we computed how much increase should be slapped on LPG prices this month, (LPG firms) imposed higher than the world market.

The Department of Energy (DoE) has issued a show cause order against oil companies and importers of liquefied petroleum gas (LPG) for failing to impose fair adjustments on commodities.

At a news briefing in Malacañang aired live on Wednesday, DoE Assistant Secretary Leonido Pulido said oil firms were given time to explain themselves.

“We were informed (by oil companies) they will roll back prices. When we compared this with our computation of how much (rollback) should be imposed, ours were way lower by 22 centavos for gasoline and 6 centavos for diesel,” Pulido said.

“We have… sent a show cause order to different oil companies and we want them to explain it. We want to give them the opportunity to explain it to us,” he added.

Following a drone attack on two of Saudi Arabia’s oil production plants, industry players have raised prices by as much as P1.35 for gasoline on the first week and by another P2.35 per liter on the second week, over fears of a supply cut. This week — the third week — saw a reduction of as much as P1.5 per liter.

“We are working with the departments of National Defense, Trade and Industry and Interior and Local Government to create an oil contingency task force to ensure supply of petroleum products in the event that a crisis like this happens again,” Pulido said.

He also gave assurance the Philippines has enough oil reserves.

He said the DoE met with oil companies following the drone attack to ensure there is sufficient supply of petroleum products domestically.

Meanwhile, LPG firms were also been given three days to explain their imposition of higher LPG prices.

“When we computed how much increase should be slapped on LPG prices this month, (LPG firms) imposed higher than the world market,” Pulido said.

“We are also asking LPG importers and suppliers in the Philippines to explain within three days the higher LPG prices,” he reiterated.

Earlier this week, Petron Corp. jacked up LPG prices by as much as P4.50 per kilogram (kg), while Phoenix Petroleum increased prices of Super LPG by P4.50 and Auto LPG by P2.50 per liter.

Solane also hiked its LPG prices by P3.98 per kg.

Prior to this month’s adjustment, prices of household LPG in Metro Manila remained within the P550 to P695 per 11-kg cylinder, based on the Department of Energy’s price monitoring.