Philippines: Diesel Price Increase Defended by Shell
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Thursday, 17 July 2008 |
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Diesel prices are expected to increase in the Philippines again within the week, despite a
sharp decline in world oil prices that closed at $138 a barrel.
Ed Chua, Pilipinas Shell Petroleum Corp. country chairman,
said current fuel costs at the pumps are still below landed costs
or what oil firms paid for in importing their products. But any
adjustment would only hit diesel, as gasoline costs “are still good,”
he said without elaborating. “Based on pure cost, we’re still below
landed costs. For diesel, we still have under recoveries.”
Before last week’s pump price adjustments, the 19th for the year except
for gasoline, oil company officials said petroleum firms still have to
recover P5 per liter from diesel prices.
Think-tank IBON Foundation, however, said earlier that the country’s
three largest oil firms—Petron Corp., Shell and Chevron (formerly
Caltex) Philippines Inc.—have been collecting more than what they
should from consumers as their mother firms continue to rake in
billions of dollars in profits.
PetrolWorld 160708
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