Pilipinas Shell Petroleum Corp. and PTT Philippines disclosed the increases to the Department of Energy (DoE) Monday. Other oil firms had yet to make their announcements as of press time.

The fuel price hike came in the wake of an increase of at least 33 percent in taxi fares. However, the Land Transportation Franchising and Regulatory Board (LTFRB) said taxis must install receipt-issuing meters before they can charge higher fares.

The previous two fuel price increases this month had raised prices of gasoline by a total of P1.25 a liter and of diesel by a combined P1.25 a liter.

Before Tuesday’s oil price hike, prices of unleaded gasoline with E-10 ranged from P46 a liter to as much as P53 a liter, according to the energy department.

Diesel prices had already risen to between P38 and P41 a liter and kerosene to between P46 and P52 a liter as of last week.

Last month, fuel prices went up twice for a total of P2.25 a liter for gasoline; P2 a liter for diesel; and P1.75 a liter for kerosene.

Rising int’l prices

Shell said the latest oil price increases reflected the upward movement in international fuel prices last week compared with the previous week.

Energy Undersecretary Jose Layug Jr. Monday confirmed by phone that oil companies would have to reflect these increases as prices of diesel based on the Mean of Platts Singapore (MOPS) benchmark for refined petroleum products had risen by about $2 a barrel.

Prices of MOPS-based gasoline increased by more than a dollar.

Layug said the price increases were within the energy department’s computations.

Formula

A $3 change in MOPS translates into a P1 increase or decrease in domestic oil prices, according to the energy department’s formula.

“Although simplified and easy to calculate, this formula has many assumed variables such that a significant change in any variable will no longer make the formula reliable,” the DoE said.

Data from the department showed that the price of Dubai crude averaged $92 a barrel as of Jan. 24, up from last month’s $89-a-barrel average.

$100-mark breached

The price of unleaded gasoline based on the MOPS benchmark for refined petroleum products showed that it had breached the $100-a-barrel mark, averaging $107 in the Jan. 1-24 period, up from $102 last December.

MOPS-based diesel prices rose to $109 a barrel from the December 2010 average of $104.

Energy Secretary Jose Rene D. Almendras has warned that domestic oil prices may continue to rise this year, especially if the Organization of the Petroleum Exporting Countries (OPEC) keeps its current oil production levels.

When demand rises while production remains stable, a tightness in supply may be felt and, most likely, will lead to spikes in crude oil prices, he said.

Smooth sailing

Because the Philippines is dependent on imports to meet its fuel requirements, it is vulnerable to price movements on the global market, Almendras said.

The LTFRB expects smooth sailing as it starts installing receipt-issuing meters on taxis ready to implement higher fare. Taxis nationwide, except in Baguio City, are required to install the new meters.

The flag-down rate will go up to P40 from the current P30, and for every succeeding 250 meters the amount of P3.50 (instead of P2.50) will be added to the fare.

LTFRB Executive Director Dante Atienza said the process was expected to run in an organized manner since the schedule of recalibration and resealing of meters was based on taxi plate numbers.

He said the agency had yet to receive complaints from commuters on overcharging drivers. He added that taxi operators were cooperative on the first day of recalibration and resealing.

Operators know exactly when their taxi unit was scheduled for meter recalibration and resealing, according to Atienza.

“Operators actually find that the orderly system works for them since they do not have to spend for all their taxi units or take them off the streets for recalibration at the same time,” Atienza said.

Plate numbers

LTFRB public information officer Sonia del Mundo said taxis with plate numbers ending in 1 and 6 are scheduled to get new meters from Jan. 14 to Feb. 14.

The schedule for those with plate numbers ending in 2 and 7 is from Feb. 15 to March 11. The schedule for those with plate numbers ending in 3 and 8 is from March 14 to April 4.

The schedule for those with plate numbers ending in 4 and 9 is from April 5 to May 2. The schedule for those with plate numbers ending in 5 and 0 is from May 3 to May 25.

A total of 25,000 to 28,000 taxi units in Metro Manila and Cebu will get new meters by May 25. Taxis that do not have new meters cannot charge higher fare, LTFRB officials said.

Hot line

Taxis that have not installed new meters or do not have receipts to issue have to stick to the current flag down of P30 and an additional P2.50 per succeeding kilometer. Otherwise, passengers may file complaints of overcharging.

Complaints may be referred to the LTFRB hot lines 0921-448-7777, 92-57-191, or 42-62-515.

Amy Remo & Riza Olchondra, Phil. Daily Inquirer