MANILA, Philippines -- While there may still be some room for pump price reductions this month, oil firms say an P8-a-liter across-the-board rollback is impossible.
Fernando Martinez, chair of the Independent Philippine Petroleum Companies Association, said price movement projections made by "certain groups'' might create false hopes for consumers, particularly as world oil prices have started to climb once again.
Only market forces, he said, would dictate whether or not more rollbacks could be implemented this month.
"In light of some price movement projections from certain groups other than oil companies' official price advisory within the month of January, we feel it prudent to advise the public that in accordance with the spirit of deregulation, market forces will be the ultimate determinant of any price movements,'' he said in a statement on Tuesday
"Any pronouncement, therefore, on the issue not backed up by the real market may only lead to unnecessary speculation and confusion, especially with the escalating wars in the Middle East,'' he added.
Martinez was referring to pronouncements made by Consumer and Oil Price Watch chair Raul Concepcion that oil firms should cut fuel prices by P2 a liter for four consecutive weeks starting this weekend.
At this point, he said it was difficult to say for certain whether or not any more pump price cuts could be made.
"It's hard to say. If it's market forces, then you have no choice, regardless of your price economics,'' he said. "IPPCA members will always strive to reflect fair and market-driven prices for all its products in its trading areas.''
Energy Secretary Angelo Reyes had earlier said motorists could still expect more rollbacks this month due to lower international oil prices in December, which served as the basis for January pricing.
However, Flying V chair and chief executive Ramon Villavicencio said his company would no longer be reducing prices since the rollbacks that were due for implementation this month had already been effected as early as December.
Martinez added that world oil prices have started to inch up over the past several days as Israel intensified its attacks on Gaza and the dispute between Russia and Ukraine over natural gas continued.
Reyes admitted that geopolitical concerns, particularly the ongoing offensive in the Middle East, could lead to instability in prices.
"(There's) volatility in the Middle East. Add to that what's happening in Nigeria where the pipeline was attacked, and what's happening in Russia and Ukraine,'' he said.
"It's difficult to say how events in the Middle East will influence prices. If you have a major outbreak of hostilities there that goes out of control, it's anybody's guess,'' he added.
According to data from the Department of Energy, the regional benchmark Dubai crude had slightly gone up to $44 a barrel as of Jan. 5, from an average of $41 a barrel last month.
The price of unleaded gasoline based on the Mean of Platts Singapore (MOPS) benchmark for refined petroleum products has likewise increased to a $46-a-barrel average in the first five days of January, from the December average of $41 a barrel.
MOPS-based diesel remained unchanged, averaging the same in the Jan. 1-5 period as the $61-a-barrel average registered in December.
Oil firms last year cut gasoline prices 19 times for a total of P28.50-P34.50 a liter and diesel prices 17 times for a total of P25.50-P28.50 a liter.
