Palace not contented with 1 peso oil price rollback

PHILIPPINE NEWS SERVICE — MALACANANG is not contented with the staggered rollbacks being implemented by oil firms, following another round of P1 price cut on pump prices.

Press Secretary Jesus Dureza said the downward trend of oil prices in the world market should allow oil firms to effect more substantial rollbacks.

“Definitely, there is something wrong here because prices in the world market are dropping significantly and we can’t feel it here,” Dureza said, referring to the world oil price which has now plunged to $70 per barrel.

“Oil companies should consult their pricing mechanisms with the National Economic Development Authority,” he added.

With the current price, Dureza said oil companies could cut their pump prices to as low as P35.32 per liter for diesel and P40.95 per liter for gasoline.

“Consumers should immediately feel the effect of the drastic cut in oil prices in the world market,” he added.

Several transport organizations echoed Dureza’s sentiment, saying oil firms should implement a one-time substantial rollback of P5 to P7 per liter.

Transport organizations said they will not oppose a fare cut, if oil companies will implement a significant rollback in their pump prices.

Alliance of Concerned Transport Organization president Efren de Luna said the rollback should be at least P3 per liter.

“Kailangan P3 kasi malaki ang ibinaba sa pamilihang pandaigdigan, halos $70 per barrel na ang ibinaba. Dapat mahiya naman ang mga oil company,” De Luna said.

He said a 50-centavo rollback in fare is possible if oil companies will also effect a substantial price rollback.

“Para sa pamaskong handog sa mga pasahero,” de Luna said.

House Speaker Prospero Nograles meanwhile said the oil price cut should be not lower than P7 per liter.

More oil

Energy Secretary Angelo T. Reyes yesterday announced two oil discoveries in northwest Palawan Basin by the Nido Petroleum Philippines Limited.

The well-drilling programs which started in September were done to test the oil potential of the Nido Formation Reef play in the area. The first well, Yakal-1, resulted in an oil discovery at the Nido Formation. It was followed by another discovery at Tindalo-1, which yielded 200 meters of combined oil columns. Both wells are located in SC 54 which is under Nido Petroleum and Kairiki Energy Limited.