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Bacolod City, PhilippinesTuesday, June 12, 2012
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‘Price cuts not enough’

Partylist Rep. Teddy Casiño yesterday said recent oil price rollbacks are still not enough considering that as of March 2012, the price of diesel is overpriced by as much as P7.86 per liter and gasoline by P16.18 per liter, a press release from his office said.

Citing data from a recent study by the Bagong Alyansang Makabayan, Casiño claimed that since the oil industry was deregulated in 1999, the upward movement of local oil prices were quick and often exceeded the movements in global oil prices and foreign exchange.

In contrast, the downward movement was slow and often small in proportion to the decrease in global oil prices and foreign exchanges the press release said.

Even if fuel prices in the country have been going down since April it is still not enough. Diesel rolled back 9 times or a total of P6.55 per liter Casino said.

Casiño had claimed that the oil industry is under a scheme of multiple overpricing, from January 1999 to March 2012, local oil companies have been able to accumulate an overprice of as much as P7.86 per liter for diesel and P16.18 for gasoline the press release said.

. With the latest roll back now oil companies should still roll back at least P1.31 on diesel prices and P10.73 in regular gasoline prices it added.

The study was based on the monthly movement of Dubai crude and foreign exchange rate based on a rule of thumb used by one major oil firm that pegged the movement of local prices at around P1/ liter for every dollar change per barrel of oil and around P.30/liter per peso change in the forex the press release also said.*

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