Chevron Philippines announced that it will raise by another P1 per liter prices of diesel, gasoline and kerosene effective today, bringing to P3 per liter the total price increase this week.
As this developed, however , Peter Lee U, an economist of the University of Asia and the Pacific, said the recent oil price increase is justified as oil firms will have to raise prices because of the increase in international oil prices.
Lee said there is a "risk premium" which affects the cost of petroleum products sourced from the world market.
"Since we import all our oil, that means our costs are going up," he said, adding the local pump prices are affected by competitive pressures.
Senator Ralph Recto on Tuesday said oil companies were unfairly increasing prices.
"We beg oil companies to hold off their greed even if it would be a lame attempt to show to the public that they are really sensitive to the people's already dire situation," he said.
Meanwhile, the Department of Energy also issued a new circular "enjoining all companies to engage in mutual product sharing accommodations and similar industry to stabilize oil supply."
The department said the mutual product accommodation is "recognized as an accepted downstream industry practice which serves public interest and intended to achieve efficiency, cost reduction and ensure continuous supply."*PNA