Flying V increases its fuel pump prices
Posted on January 11th, 2010
An increase of P1 per liter on its pump prices has been implemented by Flying V, as an effect of the increase in the world oil prices. The company based its decision on the price of Dubai crude, which is the benchmark of oil refiners.
The said commodity has gone up to $80 per barrel as of January 5, from its previous price of $75 per barrel last month. The unleaded gasoline imported from the region also went up to $89 per barrel from $82 last month. Likewise, imported diesel rose from $82 to $88 per barrel. Global oil prices have been going up because of the strong demand from Asia.
Flying V spokesman, Joey Cruz, said that the latest price adjustment of the company did not yet the 70 centavos supposed price cut due to Executive Order 850 into consideration. The said EO brought down the tariff on imported petroleum products to zero percent. “We have yet to reflect the benefit from the tariff reduction. The tariff cut took effect January 1 and we have not imported after January 1,” Cruz said.
He said that their prices will only be affected by the EO once they start importing petroleum products. He added that Flying V would follow if other oil firms also adopt the 70-centavo cut on imported fuel. According to Cruz, they have already tempered their price hike a little bit, because they were supposed to jack their prices by P1.20 per liter.
Department of Energy Secretary Angelo Reyes recently announced EO 850 which he said would trigger a 70-centavo cut on local pump prices.
Reyes said, “The president has issued an executive order reducing the tariff from three percent to zero. The effect of the EO on the pump price is 70 centavos per liter, so we should see the effect next week. So, whatever the price will be next week, there will be a reduction of 70 centavos to conform with the EO.”
The said EO was signed last December 23, 2009 and took effect last January 1, 2010.
