WORLDWIDE FUEL SUPPLY IN EXCESS
    Anakpawis calls for price rollback

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    CITY OF SAN FERNANDO – The latest fuel price increases by independent oil companies in the country had no basis amid excess supply being reported by the Department of Energy (DOE) and situations peculiar only to Asia, the party list Anakpawis said yesterday.

    Anakpawis Rep. Fernando Hicap cited Platts, an Ohiobased market price provider, saying that “gasoline and diesel continues to lose steam” in Asia, and amid “high supply emerging from India and North Asia.”

    “In addition, improved supply conditions and bloating supply inventory is pushing for the weakening of Asian gas market compared to Europe,” Hicap quoted Platt as reporting recently.

    He noted that independent oil companies imposed recently a P1.45 per liter increase in gasoline, P1 for diesel and P1.05 for kerosene.

    “We demand a roll back instead of increase as the prices of oil in the world market have remained low due to oversupply” Hicap stressed.

    Hicap also cited a report of the DOE as saying that “despite the US crude oil recovery of five percent from almost six months of slump in the world market, the supply of oil has remained relatively high with 1.5 million per barrel in excess capacity.”

    “This is why the latest oil price hikes are baseless,” he stressed.

    Hicap noted that “given the huge surplus of oil, the 120,000 to 140,000 barrels per day which potentially cannot be produced due to the trouble brewing in Yemen, will not gravely affect the supply.”

    Hicap also criticized the Aquino government “for allowing oil companies to implement a big time oil price hike.”

    “Regardless of the situation in the Middle East, our oil companies are prone to increasing their prices immediately, but turn into slow paced turtles when the situation warrants a price roll back. It is clear that there is government collusion with these companies, motivated by profit from the 12 percent Value Added Tax,” he added.

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