Pryce Gases rolls back diesel, gasoline pump prices

An independent local player of the deregulated petroleum industry has slashed its prices for diesel and gasoline by P1.00 per liter effective September 1, 2009 despite the August 30 price hikes of some leading companies.

Rafael P. Escaño, president of Pryce Gases, Inc. (PGI), said the company will maintain the P1.00 per liter difference for as long as they can afford to do it to provide relief to motorists beleaguered by the continued uptrend of petroleum prices elsewhere.

This was in contrast with the P1.00 per liter increase imposed by Petron, Phoenix, Pilipinas Shell and Total on the prices of gasoline, diesel and kerosene on August 30, citing the rising prices of oil worldwide.

"Lipay kaayo ko aning sayo nga pinaskuhan," said Nong Bonex, a jeepney driver.

In a press conference held August 31 at Pryce Plaza, Escaño said PGI decided it can still afford to roll back the oil pump prices in all of its gas stations after thorough assessment of its pricing components.

"We intend to maintain our diesel and gasoline products at P1.00 lower than the prevailing prices," Escaño said. "You can help us maintain this price differential by buying from us," he added.

The Department of Energy (DOE) noted Dubai crude averaged $71 a barrel in August from $65 a barrel in July. The DOE also said the price of unleaded gasoline at the Mean of Platts Singapore (MOPS) averaged $83 a barrel this month from $73 a barrel in July, while the price of MOPS-based diesel averaged $80 a barrel this month from $72 per barrel in July.

Although the Independent Philippine Petroleum Companies Association (IPPCA) is now headed by PGI Chair Salvador P. Escaño as its president, the younger Escaño clarified that its members would not be deciding on their retail prices as a group but individually since concerted price setting is specifically prohibited by the Oil Deregulation Act.

Besides PGI, IPPCA members include Unioil Petroleum Philippines Incorporated, Eastern Petroleum Corporation, Flying V, Seaoil Philippines Incorporated, Oilink International Corporation, Filpride Energy Corporation, Filoil Finance Management Corporation, Chemrez Technologies Incorporated, Liquigaz Philippines Corporation, , Senbel Corporation, Cityoil, Phoenix and IEPI.

Independent oil companies have been known to initiate reductions in pump prices but denied an allegation of the Consumer and Oil Price Watch (COPW), a consumer watchdog group, that IPPCA members have agreed to an "All Even or Patas Na" situation regarding under-recoveries in the pricing mechanism.