Rollback in fuel prices imposed by oil companies should be higher by now — Recto

Rolled back prices being imposed by some of the oil companies in the country should be higher considering the continuing reduction in cost of imported fuel products and those in the world market, Sen. Ralph Recto yesterday said.

“I think it should be lower by now, that’s all I’m saying. But I welcome the rollback naturally, just like everyone else,” he added.

“It’s been a month since the prices (in the international market) started to be adjusted and the slash has been quite significant. So I think the rollback should have been made long time ago. But I welcome the reduction today, I wish it were more,” he said in an interview with reporters.

Recto was sought for his reaction to the latest rollback imposed by at least eight oil firms.

The chairman of the Senate ways and means committee, noted the rates in Nov. 2010 when the prices per barrel and foreign exchange of dollar to peso were the same to the present situation.

Based on the data on the price monitoring of refined petroleum products and foreign exchange rates on the same period, the Dubai crude was at $83.65 per barrel at an exchange rate of P43.57 as against $1 and the domestic pump prices for gasoline and diesel were at P44.75 and P35.50 per liter, respectively.

“So comparable prices, today the price of oil is something like $80 to $83/barrel (based on) Dubai (crude oil); the exchange rate is even better than this, we’re about P42 more or less, P42 to P43.50.

“I will not give estimates (as to what the level of prices should be). I’m not making any suggestions. I’m just saying that these are the data I’m looking at from the DoE,” he said.

“But you can make the deductions, you can make the ballpark figures (as to how much the rollback should be). I don’t know what the average price is today but you can take a look at your gasoline station whenever you fill up your tank. And I think masyadong mabagal yung rollback,” he added.

The senator noted the weakened economy of European countries that is expected to dampen demand for oil “which means further lowering of imported oil prices.”

“That will be good for the Philippine economy moving forward, so we have a better chance to be able to sustain our economic growth. To a certain degree, there is a benefit to the Philippines now that Europe and America is tinkering, because oil prices are going down so inflation expectedly will be low and because of that real growth could be higher. The opposition side to that, the con to that, is OFW overseas Filipino workers) remittances and exports will be affected. That will be the negative side to that.

“In the last few years, we’ve seen also that the OFW remittances have been staple and maybe because they’re investing in the Philippines. They’re sending their money back home and its better for them to invest in the Philippines than let’s say in America or in Europe.

Recto said a review of the records of the Department of Energy on the fluctuating costs of Dubai crude, refined petroleum products and the prevailing foreign exchange rate could give a fairly good idea of how much the rollback should be.

“But if you invested in oil companies, you will be making dividends now. It (oil industry) is a regulated industry but I think it should be regulated,” he said. –Angie M. Rosales, Daily Tribune