The disconnect in local oil pricing

By Rose de la Cruz

Fuel companies make a fool of their consumer all the time by reducing pump prices by a few centavos once and then jacking up the prices several times in bigger amounts the next..

Their usual excuse is that fuel prices follow global market pricing which is based on projected and actual production (always at the manipulation and dictation of world oil producers)– hence their business depends on such swinging rates.

But what they do not tell the consumers and motorists is that the changes in the global oil prices must technically be applied to new imported stocks, and not to their present-day inventories, which they sell at their stations to motorists.

Because of their insatiable desire (or is it greed) for profits– believe me what they pay to our government is usually too small compared to the royalties they remit back home to their headquarters– which is why locals are being gypped twice by these oil companies.

And telling us consumers that for now, they are offering a welcome relief by reducing the prices of gasoline, diesel and kerosene because of global market shifts,  they continue to fool us with their consuelo de bobo (insane consolation)..

Oil companies will reduce pump prices effective Tuesday after three consecutive weeks of increases, reported Bilyonaryo.

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Caltex, Cleanfuel, Petro Gazz, Seaoil, and Shell announced on Monday that they will lower gasoline prices by 50 centavos per liter, diesel by 70 centavos per liter, and kerosene by 85 centavos per liter. Other oil firms are expected to implement similar cuts.

In the past three weeks, gasoline prices have risen by P3.10 per liter, diesel by P4.80 per liter, and kerosene by P3.60 per liter.

The Department of Energy (DOE) reported year-to-date adjustments showing a net increase of P9.05 per liter for gasoline and P 6.75 per liter for diesel, while kerosene has seen a net decrease of P2.75 per liter.

Current prices for gasoline range from P50.60 to P87.52 per liter, diesel from P47.75 to P72.65 per liter, and kerosene from P69.89 to P80.74 per liter.

Last week, global oil prices closed weaker amid concerns over demand in China following its economic easing.