DOE fails to persuade oil companies to delay price hikes

The Philippines Department of Energy (DoE) failed to reach a compromise agreement with oil companies that would cushion the impact of the oil price increases. The oil firms such as Pilipinas Shell, Petron Corporation, Chevron (formerly Caltex), Total Philippines and other independent oil players said they need to recover at least Php6.00 (US$0.14) per liter. Nicasio Alcantara, chairman and CEO of Petron Corporation, in an interview with reporters after the forum, said it was impossible to stagger the implementation of the price recovery. Energy Secretary Angelo Reyes, meantime, said they couldnt force oil companies not to implement price adjustments since the oil industry is already deregulated. But he asked auditing firm Sycip Gorres and Velayo (SGV) and the University of Asia and the Pacific (UA&P) to expedite its report for the government to determine the reasonableness of the price increases being imposed by oil firms. (May 6, 2008)