Oil firms see further rollbacks

BY JOCELYN MONTEMAYOR

PRESIDENT Arroyo yesterday indirectly told oil companies, particularly the big firms, to reduce their pump prices by thanking them for "future rollbacks."

Arroyo spoke at the launching of the "TODA-Bigay" joint program of the Department of Energy and Pilipinas-Shell Corp. at the SM Mall of Asia.

Shell was represented in the event by country chairman Ed Chua.

"Siyempre si Mr Ed Chua… Maraming salamat sa mga biyayang binibigay ninyo… at salamat sa mga susunod pang price rollback," she said.

Chua, in an interview, said Shell is eyeing a rollback possibly before November 1.

"If the trend continues, there should be further reductions to be expected. We review our prices weekly. I think we can look forward to further reduction but we cannot say how much," Chua said.

Vice President Noli de Castro asked the big oil companies to roll back prices by at least P2 like the independent players.

De Castro said if the small players who are merely trading oil and have no refinery can afford to cut prices by at least P2, the big firms which import in bulk have more reason to reduce prices.

"These businessmen cannot claim they are always incurring business losses. They must exercise their corporate social responsibility and not just think of profit. I believe that one of the main causes of the present global economic crisis is the greed of those giant companies," De Castro said.

Senate majority leader Francis Pangilinan asked the Big 3 – Pilipinas Shell, Petron Corp. and Chevron — to effect a "one-time, big-time" rollback to reflect the further softening of the world crude prices.

Militant transport groups are demanding a P7 one-time price reduction.

Consumer watchdogs have estimated that oil firms could withstand a rollback of P7 to P8 per liter of unleaded gasoline.

As of October 17, the Dubai crude average was pegged at $74 per barrel, which is lower than the August average of $112.86 per barrel.

Mean of Platts Singapore (MOPS) unleaded prices as of October 17 have gone down by $26.49 to $89 per barrel, from August average of $115.49 per barrel.

MOPS diesel during the period was pegged at $94 per barrel, $49.26 lower compared to the August average of $135.26 per barrel.

Arroyo, at the TODA-Bigay launching, distributed "Pepeng Pasada" cards to tricycle drivers, which would enable them to avail of a P1 per liter discount on fuel, and a P2 discount on T2 motor oil in 600 Shell stations nationwide from October 20 to December 31 this year.

At least 1,000 members of TODA (tricycle operators-drivers association) are expected to benefit from the cards.

Arroyo also gave out Philippine Health Insurance cards to the TODA members, a P1 million check for rice assistance to the TODA members, and P2 million worth of scholarships grants from the Technical Education and Skills Development Authority and student loans for the college children of the TODA members.

She also announced a reduction of emission testing rates for tricycles.

Arroyo acknowledged the importance of the tricycles especially in the provinces and in parts of Metro Manila with narrow side streets.

She said she rode a tricycle when she was a senator years back, which is why she "understands" the importance of a tricycle. – With John Lourenze Poquiz and Dennis Gadil