Recto urges oil companies to rollback more prices

SENATOR Ralph G. Recto asked oil companies to implement more and faster price cuts on petroleum products as Dubai crude oil price continues to plunge due to lesser demand in US and Europe.

“Oil companies are raking more profit this year than the same period in 2010 since the price of Dubai Crude is much lower today at $82 per barrel, and the exchange rate is at P42.33 to a dollar. So, we need much more and faster rollback on prices of petroleum products,” Recto said in an interview Tuesday.

“Gasoline and diesel prices should be lower than now, But I welcome the rollback,” he added.

“It appear to me that the public is happy with the rollback, but for me, it should more and faster,” he reiterated.

Using data from the Department of Energy, Recto said that the price of gasoline and diesel in November 2010 is at P44.75 and P35.50 per litter respectively at $83.65 per barrel of Dubai crude in the international market and with a P43.57 dollar exchange rate to a peso.

“May isang buwan nang $82 ang Dubai crude oil sa international market, the exchange rate is P42.33 to a dollar, and the taxes collected on petroleum products is the same, so oil companies are raking more profit this year than the same period in 2010,” Recto reiterated.

According to Recto, the price of Dubai crude today in the international market is pegged at $82 per barrel which he insinuated that the present price of diesel should be less than P35 per litter compared to P39 per litter of present pump price.

“I don’t know the average of gasoline and diesel today, but in November 2010 the price of gasoline is at P44.75 per litter, and diesel is at P35.50 per litter, with an exchange rate of $43.57. But today, the exchange rate is much lower than the November 2010 level, so, the price of gasoline and diesel should be at least there about,” he explained.

Recto also said that the price of Dubai crude continues to drop as demand in the United States and Europe also lessen due to weaker economy and the Philippine economy is being stabilized by constant infusion of dollar remittances from overseas Filipino workers.

“Bakit bumaba ang price ng Dubai crude due to weakening economies in the US and Europe. At least we are benefiting from a certain degree now on America’s and Europe’s  weaker economy. Aside from that, OFWs remittances is being steady, they are investing into our economy through their remittances,” he said.

Latest data from DOE said beginning April 30, 2012 to May 4, 2012, the price of Dubai Crude oil is pegged at $115.34 per barrel, with P42.21 exchange rate of peso to a dollar, and the price of gasoline is P56.80 per litter and diesel at P47.04 per litter.


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