Strengthening of the Philippine peso is helping curb domestic oil price increases but the current strength of the local unit is not enough to totally prevent oil price hike, Energy Secretary Carlos Jericho Petilla said yesterday.

Petilla said the depreciation of the peso also impacts on oil prices and since the path of oil prices continue to go up “we simply follow the world prices.”

“It’s not enough to offset the demand and the movement of world oil prices. It could have been worse if the peso is depreciating against the dollar but it helps right now,” he said.

Other factors in the rise of world oil prices include the reported recovery of the US economy and signs of recovery in Europe although Petilla said he doesn’t see any recovery in the current economy of the Eurozone.

He, however, stressed that among the major factors affecting world oil prices to date is the crisis in Syria, which is being aggravated by the possible entry of Iran in the picture, and the oil pirates in the Malacca area.

Petilla said there is fear that when Iran gets into the picture then the route of ships (being oil going to the Philippines) will be closed and when that happens “then we have a problem.”

The peso has been trading at 40-level against a dollar since the start of the year.

Meanwhile, oil companies have been implementing more price hikes than rollback since the start of the year and this week is the third consecutive week that rates will increase.*PNA

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